Income Tax Section 80D for Old Tax Regime | The India Government has given various income tax deductions to facilities to that people to buy health insurance and take care of their health. But if you oft the new tax regime you are not eligible to avail of these benefits. If you choose the old tax regime, you can avail of these deductions to reduce your tax expense in F.Y. 2023-2024.

Therefore,

Section 80D of the Income Tax Act 1961 provides tax exemption to individuals for amounts paid for health insurance premiums and medical expenses. Following are the various deductions available under section 80D for Indian taxpayers:

You may also like- Download and Prepare at a time 50 Employees Auto Calculate Income Tax Form 16 Part B for the Financial Year 2022-23 and Assessment Year 2023-24

A person can claim a deduction for health insurance premiums for themselves, their spouse, their dependent children, and their parents. The limit of the deduction available is Rs 25,000 for one financial year. If the policyholder is senior (more than 60 years), the maximum deduction is Rs 50,000 per annum.

An additional deduction is available for parental insurance premiums paid up to Rs 25,000 if they are under 60, or Rs 50,000 if their parents are over 60. In case you and your parents are over 60, a maximum deduction of Rs.1 lakh can be claimed.

You may also like- Download and Prepare at a time 50 Employees Auto Calculate Income Tax Form 16 Part A&B for the Financial Year 2022-23 and Assessment Year 2023-24 

Preventive health checks

An additional deduction of up to Rs 5,000 is allowed for expenses incurred for preventive health checks for self, spouse, dependent children, and parents.

Medical expenses for the elderly.

An additional deduction of up to Rs 50,000 per annum is allowed for medical expenses paid to senior citizens who do not have any coverage under any health insurance scheme.

Deduction in case of a single premium health policy

 Under the new rule, when a taxpayer pays a lump sum annual premium for a policy valid for more than one year, they can claim a deduction equal to the fraction required under section 80D,

The appropriate fraction is determined by dividing the global premium paid by the number of policy years. However, this will be further limited to Rs.25,000 to Rs.50,000, as the case may be.

Don’t forget

There are some things that need to clear while claiming a deduction under Section 80D.

Maximum deduction

Determine the maximum deduction allowed under Section 80D, depending on your circumstances.

Let us take an example. Parijat is 50 years old and her father is 65. Parijat has taken medical insurance for himself and his father, for which she pays insurance premiums of Rs 28,000 and Rs 40,000 respectively. You can claim Rs 25,000 for premiums paid under your own policy. For the down payment for her father’s policy, Parijat can claim up to Rs 50,000. So in total, you can claim a deduction of Rs 65,000.

Additionally, in order to claim the deduction, the down payment must be made by banking methods such as checks, credit cards, or net banking. Cash payments will not be eligible for deductions under this section.

Download Auto Calculate Income Tax Arrears Relief CalculatorU/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 in Excel