A health insurance policy has become a necessity to get quality and prompt medical attention in case of an emergency. The right health policy can ensure financial security by covering your medical costs. It allows you to maintain your savings by covering your hospital and other healthcare bills.
A health policy offers many benefits, including access to quality healthcare services without worrying about the financial costs. However, many still do not have a policy.
Hence, the government of India has introduced health insurance tax benefits to insurance policyholders under Section 80D to promote the purchase of medical policies.
In this blog, we shall discuss how to fill 80D in ITR and various other related aspects.
What is Section 80D?
Under Section 80D of the Income Tax Act, you can claim annual tax deductions on the premiums for the health insurance policy. If you are an individual under 60 years or HUF, you can claim tax deductions of ₹25,000 for the medical insurance premiums you have paid for the financial year. Top-up health plans and critical illness plans also qualify for these deductions.
For senior citizen health insurance, you can claim a deduction of ₹50,000 annually. Also, if an individual below 60 years pays the premium for their senior citizen parents, they can enjoy a tax deduction on health insurance premiums of ₹75,000 annually. And if all policyholders are senior citizens, they can get a tax rebate of up to ₹1 lakh in a financial year.
What is Schedule 80D?
Schedule 80D in ITR details the tax deductions claimed by a policyholder against their premium for the financial year.
To avail of the deductions, schedule 80D is required to be filled by the policyholder. Taxpayers can claim these deductions against the premiums they have paid for medical insurance premiums for themselves, their parents, spouses, and children. All they need to do is fill in the ITR 80D form.
If you are wondering – How do I update my 80D in income tax? Read on to learn the steps of filling Schedule 80D in ITR.
How to Fill Schedule 80D in ITR
You can fill out Schedule 80D while filing the ITR online. Here is what you need to know and follow the steps.
So, how to complete Section 80D in an Income Tax Return (ITR)? Well, you can fill out Schedule 80D at the time of filing your Income Tax Return for the financial year.
- Login to your ITR filing portal.
- Select ITR-1 Sahaj or ITR-4 Sugam from the list of ITR forms.
- Go to Gross Total Income.
- Click on Tax Deductions.
- It will direct you to a page that has questions related to tax deductions.
- Click ‘Yes’ to the 5th question, which mentions whether you are eligible to claim deductions towards medical insurance
- It will take you to another page where you need to fill in the form 80D information correctly.
- Enter the details of your health insurance premium amount and the medical expenses of preventive health check-ups for the financial year.
- Click the ‘Submit’ button after filling in all the details.
Please Note: If you want to get tax deductions under ITR 80D, you must pay your policy premiums either online or through check or demand draft. The Income Tax Department does not consider cash payment of policy premiums.
Can We Claim 80D and 80DDB Together?
Different sections of the Income Tax Act offer you tax deductions on your healthcare insurance policy. Policyholders can benefit from both Sections 80D and 80DDB of the Income Tax Act as they offer tax deductions.
However, if you are wondering, can we claim 80D and 80DDB together? The answer is – Yes.
Section 80D offers tax deductions on health insurance premiums, whereas Section 80DDB offers you tax deductions on the medical expenses incurred due to treatment.
Section 80D of the Income Tax Act allows policyholders (below 60 years)to get a tax deduction of up to ₹25,000 on the premiums they paid for the financial year. And senior citizen policyholders can get a deduction of ₹50,000 on their health insurance premiums.
Under Section 80DDB, a policyholder below the age of 60 can avail of a tax deduction of up to ₹40,000 on their medical expenses. Senior citizen policyholders can avail up to ₹1 lakh deductions on their expenses incurred due to medical treatment. Section 80DDB also offers tax deductions on the medical expenses incurred for spouses, children, and other family members who are dependent on them.
FAQs
- How do I enter 80D on my tax return?
You need to enter 80D details for tax deductions via the ITR portal. Fill either ITR-1 Sahaj or ITR-4 Sugam from the list of ITR forms based on what is appropriate for you.
- What is the limit of 80D exemption?
The 80D exemption limit for policyholders under 60 years is ₹25,000. The exemption limit for senior citizen policyholders is up to ₹50,000 on their yearly premiums.
- Is proof required for 80D?
To get tax exemptions under Section 80D, you must make all your payments either online or via check or demand draft.