Section 80D of the Income Tax Act, 1961, allows individuals and Hindu Undivided Families (HUFs) in India to claim a tax deduction for premiums paid towards health insurance policies. This deduction also includes payments made for preventive health check-ups and contributions to the Central Government Health Scheme (CGHS).
Under this section, you can claim deductions for premiums paid for yourself, your spouse, children, and parents. The deduction limit varies based on the age of the insured. For example, higher deductions are allowed if the policy covers senior citizens (aged 60 and above). The maximum deduction can go up to ₹1,00,000 in certain cases, depending on the age of the insured family members.
For small business owners and professionals, claiming Section 80D helps lower taxable income while ensuring essential health coverage for the family. It becomes especially useful during income tax filings as part of tax planning strategies. Business owners can also include it while evaluating personal tax liabilities if they are filing returns under the individual category.
It’s important to note that payments must be made through non-cash modes (except for preventive health check-ups) to qualify for the deduction. This makes it essential to keep proof of payment and policy documents for compliance.
To explore more about income tax solutions tailored for your financial needs, visit FinTax24’s Income Tax Services.
Section 80D is a practical and beneficial provision for anyone seeking tax relief while safeguarding their health and that of their loved ones.