Income Tax deductions under Section 80D
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Section 80D allows the taxpayer to benefit from tax exemptions on the premiums made on medical insurance. Section 80D deductions apply to an individual over and above Section 80C tax deductions.
The deductions allowed under Section 80D are:
-
For Self and family: A maximum deduction of 25000 is allowed for health insurance premiums for self and family under section 80D but if you’re senior citizen then your tax exemption could up to 50000
-
Additional deductions- An additional deduction of 5000 can be claimed by the taxpayer on the expenses related to health checkups. Such tax deduction prescribed by the government extends to a person’s kids, parents and spouse.
Overall tax deduction limits
|
Persons Covered |
Exemption Limit |
Health Check-Up Exemption |
Total |
|
Self and family |
Rs.25,000 |
Rs.5,000 |
Rs.25,000 |
|
Self and family + parents |
Rs.(25,000 + 25,000) = Rs.50,000 |
Rs.5,000 |
Rs.55,000 |
|
Self and family + senior citizen parents |
Rs.(25,000 + 50,000) = Rs.75,000 |
Rs.5,000 |
Rs.80,000 |
|
Self (senior citizen) and family + senior citizen parents |
Rs.(50,000 + 50,000) = Rs.1,00,000 |
Rs.5,000 |
Rs.1.05 lakh |
Deduction of MediClaim
MediClaim policy is a type of health insurance policy which is meant for taking care of the medical expenses of a person. Deduction of MediClaim makes sure that a person’s health insurance policy stays active. The policy is applicable for the policyholder and his/her spouse.
Summary of various tax deductions
|
Section |
Deduction on |
Allowed Limit (maximum) FY 2018-19 |
|
Section 80C |
– Investment in PPF – Employee’s share of PF contribution – NSCs – Life Insurance Premium payment – Children’s Tuition Fee – Principal Repayment of home loan – Investment in Sukanya Samridhi Account – ULIPS – ELSS – Sum paid to purchase deferred annuity – Five year deposit scheme – Senior Citizens savings scheme – Subscription to notified securities/notified deposits scheme – Contribution to notified Pension Fund set up by Mutual Fund or UTI. – Subscription to Home Loan Account scheme of the National Housing Bank – Subscription to deposit scheme of a public sector or company engaged in providing housing finance – Contribution to notified annuity Plan of LIC – Subscription to equity shares/ debentures of an approved eligible issue – Subscription to notified bonds of NABARD |
Rs. 1,50,000 |
|
80CCC |
For amount deposited in annuity plan of LIC or any other insurer for pension from a fund referred to in Section 10(23AAB). |
– |
|
80CCD(1) |
Employee’s contribution to NPS account (maximum up to Rs 1,50,000) |
– |
|
80CCD(2) |
Employer’s contribution to NPS account |
Maximum up to 10% of salary |
|
80CCD(1B) |
Additional contribution to NPS |
Rs. 50,000 |
|
80TTA(1) |
Interest Income from Savings account |
Maximum up to 10,000 |
|
80TTB |
Exemption of interest from banks, post office, etc. Applicable only to senior citizens |
Maximum up to 50,000 |
|
80GG |
For rent paid when HRA is not received from employer |
Least of :
– Rent paid minus 10% of total income – Rs. 5000/- per month – 25% of total income |
|
80E |
Interest on education loan |
Interest paid for a period of 8 years |
|
80EE |
Interest on home loan for first time home owners |
Rs 50,000 |
|
80CCG |
Rajiv Gandhi Equity Scheme for investments in Equities |
Lower of
– 50% of amount invested in equity shares; or – Rs 25,000 |
|
80D |
Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old |
– Rs. 25,000 – Rs. 50,000 |
|
80DD |
Medical treatment for handicapped dependent or payment to specified scheme for maintenance of handicapped dependent
– Disability is 40% or more but less than 80% – Disability is 80% or more |
– Rs. 75,000 – Rs. 1,25,000 |
|
80DDB |
Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD
– For less than 60 years old – For more than 60 years old |
– Lower of Rs 40,000 or the amount actually paid – Lower of Rs 1,00,000 or the amount actually paid |
|
80U |
Self suffering from disability:
– Individual suffering from a physical disability (including blindness) or mental retardation. – Individual suffering from severe disability |
– Rs. 75,000 – Rs. 1,25,000 |
|
80GGB |
Contribution by companies to political parties |
Amount contributed (not allowed if paid in cash) |
|
80GGC |
Contribution by individuals to political parties |
Amount contributed (not allowed if paid in cash) |
|
80RRB |
Deductions on Income by way of Royalty of a Patent |
Lower of Rs 3,00,000 or income received |
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