Save tax under Section 80D on Preventive Health Check ups

Several hospitals and clinics offer health check up packages. If you have got a health check up done or plan to get a health check up done you can now save tax on it.

Deduction available – Rs 5,000 can be claimed as a deduction under section 80D. This Rs 5,000 is within the overall limit of Rs 15,000 available for self, spouse, dependent children. This Rs 15,000 is enhanced to Rs 20,000 when you or your spouse or both of you are more than 60 years old. (An additional Rs 15,000 is available for health insurance paid for parents and this is also increased to Rs 20,000 when one or both parents are more than 60 years old).

Let’s understand by way of some examples –

Example 1 – Rohan has paid a health insurance premium of Rs 13,200 to insure the health of his wife and dependent children in financial year 2014-15. He also got health check up done for himself and paid Rs 7,000.

Rohan can claim a maximum deduction of Rs 15,000 under Section 80D of the Income Tax Act. Rs 13,200 has been allowed towards insurance premium paid. And Rs 1,800 has been allowed on health check up. Since overall deduction cannot exceed Rs 15,000 in this case.

Example 2 – Vikas is 62 yrs old and his wife is 58 years old. Vikas paid a health insurance premium of Rs 12,000 and Rs 8,500 towards preventive health check for himself and his wife.

Vikas can claim a maximum deduction of Rs 17,000 under section 80D. Rs 12,000 has been allowed towards health insurance paid and Rs 5,000 for health check up. (deduction for health checkup is allowed for a maximum up to Rs 5,000).

Example 3– Sunil is 45 yrs old and he paid a health insurance premium of Rs 16,000 to ensure the health of his family – himself, his wife and 2 kids. He paid an additional Rs 18,000 towards health insurance premium for his father and mother who are more than 60 years old. Additionally, he got a health check up done for his father for Rs 6,000.

Sunil can claim Rs 15,000 towards health insurance of himself, his wife and two kids.

Sunil can claim additional Rs 20,000 for his parents. Rs 18,000 towards health insurance and Rs 1,200 for preventive health check up for his parents.

He can claim a total deduction under section 80D of Rs 35,000.

Example 4 – Vijay is 50 years old and he paid Rs 21,000 towards health insurance for himself and his wife. He also spent Rs 5,000 towards preventive health check ups for both of them. Additionally, he paid Rs 8,000 for health insurance of his 80 years old mother and an additional Rs 7,000 for her health check up.

Vijay can claim Rs 15,000 under section 80D towards health insurance he paid for himself and his wife (both are less than 60 years old).

Vijay can claim an additional Rs 8,000 for health insurance of his mother and Rs 5,000 towards her health check up. (maximum amount that can be claimed for health check up is Rs 5,000)

Vijay can claim a total deduction of Rs 28,000 under section 80D of the Income Tax Act.

 

In case you have any questions – do reach out to us support@cleartax.in

2 Responses to Save tax under Section 80D on Preventive Health Check ups

  1. dr.hasan February 11, 2015 at 9:37 pm #

    In example 2, max deduction should have been rs 15000 right..? Pls clarify..

    • cleartax-team February 12, 2015 at 12:44 pm #

      In example 2, since Vikas is more than 60 years old – he can claim a maximum deduction of Rs 20,000 for self, spouse and children. If he was less than 60 years old the deduction would have been limited to Rs 15,000.
      Maximum deduction for preventive health check ups is limited to Rs 5,000. Therefore, deduction for Vikas is Rs 12,000 (insurance premium) and Rs 5,000( maximum on account of preventive health check ups). Total deduction allowed under section 80D is Rs 17,000.