Key Highlights:
• Rs. 15,000/- maximum deduction for self, spouse and dependent children
• Rs. 15,000/- maximum deduction for parents. This limit increases to Rs. 20,000/- if parents are senior citizen
• Deduction towards parents’ medical policies is available even if parents are independent.
• Rs. 5,000/- maximum deduction towards preventive health check-up. This limit is within above prescribed limits.
• Health Policy Premium must be paid in any mode other than cash.
• Preventive health check-up charges can be paid in any mode including cash.
Also Read : Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Detailed Article
There are different ways in which a tax deduction can be taken for the premium that is paid for the purpose of health insurance under Section 80D. The overall working might seem to be a little complicated but if the details are known in detail then there would be a proper way in which the process can be completed. One aspect that will require the attention of all the individuals is the new addition to the list whereby even expenses on preventive tests can also be considered for the benefit.
Various elements:
When it comes to the question of different elements that are a part of the deduction related to the medical insurance premium there is a simple way in which the situation can be considered. The benefit is actually for the premium that is paid on the health insurance policy so this is the primary factor that requires the most attention. The next point is who will get the benefit and this will be the individual and the family members comprising of the spouse and the dependent children. The benefit is for Rs 15,000 plus there will be another sum of Rs 15,000 for the payment for the health insurance of the parents of the individual. In case there is a senior citizen who is part of either of the categories then the figure would rise to Rs 20,000.
Preventive check up:
One of the additional routes that have been opened up is that of the expense that is spent on the preventive check up of the individual and the family members which would include the spouse and the dependent children. Even the expense on the preventive check up of the parents would be covered for the deduction under that particular sub head. Here there is a big difference from the other way to get the deduction where there is a premium paid for the coverage. In case of the preventive check up the main point is that the expense will lead to a situation where there might be prevention of hospitalization. So in this sense there is a completely different nature of the expense that is included here.
Amount:
The extent of the coverage of this benefit in terms of the deduction for preventive check up is restricted to Rs 5,000 in total under both the heads of the individual and family members and the parents of the individual. This benefit is limited to Rs 5,000 for the amount spent and most importantly it is within the overall limit that is present of Rs 15,000 for each sub category so this is not an extra benefit but falls within the existing limits.
Also Read : Why home loan is better than renting
Cash benefits:
There is another significant difference that can be seen with respect to the preventive health check up as against the premium paid for the health insurance coverage. In case of the premium payment for health insurance the amount will qualify for the benefit if the amount is paid in any other mode other than cash. So this would include a wide range of modes of payment including cheque and credit cards and even direct transfer from the bank account on the online mode.
However this condition has been changed when it comes to the question of incurring the preventive health check up. In this situation even a payment in cash will be covered so this is a difference that will help the individual to ensure that they are able to make the expense in the manner that they see fit. There are a lot of places where the preventive check ups can be conducted and this need not be in the form of cheque payment because cash would need to be given and in such a situation this will not be kept away from the tax benefit.
About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com
Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days
• Rs. 15,000/- maximum deduction for self, spouse and dependent children
• Rs. 15,000/- maximum deduction for parents. This limit increases to Rs. 20,000/- if parents are senior citizen
• Deduction towards parents’ medical policies is available even if parents are independent.
• Rs. 5,000/- maximum deduction towards preventive health check-up. This limit is within above prescribed limits.
• Health Policy Premium must be paid in any mode other than cash.
• Preventive health check-up charges can be paid in any mode including cash.
Also Read : Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Detailed Article
There are different ways in which a tax deduction can be taken for the premium that is paid for the purpose of health insurance under Section 80D. The overall working might seem to be a little complicated but if the details are known in detail then there would be a proper way in which the process can be completed. One aspect that will require the attention of all the individuals is the new addition to the list whereby even expenses on preventive tests can also be considered for the benefit.
Various elements:
When it comes to the question of different elements that are a part of the deduction related to the medical insurance premium there is a simple way in which the situation can be considered. The benefit is actually for the premium that is paid on the health insurance policy so this is the primary factor that requires the most attention. The next point is who will get the benefit and this will be the individual and the family members comprising of the spouse and the dependent children. The benefit is for Rs 15,000 plus there will be another sum of Rs 15,000 for the payment for the health insurance of the parents of the individual. In case there is a senior citizen who is part of either of the categories then the figure would rise to Rs 20,000.
Preventive check up:
One of the additional routes that have been opened up is that of the expense that is spent on the preventive check up of the individual and the family members which would include the spouse and the dependent children. Even the expense on the preventive check up of the parents would be covered for the deduction under that particular sub head. Here there is a big difference from the other way to get the deduction where there is a premium paid for the coverage. In case of the preventive check up the main point is that the expense will lead to a situation where there might be prevention of hospitalization. So in this sense there is a completely different nature of the expense that is included here.
Amount:
The extent of the coverage of this benefit in terms of the deduction for preventive check up is restricted to Rs 5,000 in total under both the heads of the individual and family members and the parents of the individual. This benefit is limited to Rs 5,000 for the amount spent and most importantly it is within the overall limit that is present of Rs 15,000 for each sub category so this is not an extra benefit but falls within the existing limits.
Also Read : Why home loan is better than renting
Cash benefits:
There is another significant difference that can be seen with respect to the preventive health check up as against the premium paid for the health insurance coverage. In case of the premium payment for health insurance the amount will qualify for the benefit if the amount is paid in any other mode other than cash. So this would include a wide range of modes of payment including cheque and credit cards and even direct transfer from the bank account on the online mode.
However this condition has been changed when it comes to the question of incurring the preventive health check up. In this situation even a payment in cash will be covered so this is a difference that will help the individual to ensure that they are able to make the expense in the manner that they see fit. There are a lot of places where the preventive check ups can be conducted and this need not be in the form of cheque payment because cash would need to be given and in such a situation this will not be kept away from the tax benefit.
About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com
Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days
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