Preventive Health Checkup 80D Deduction, Proof and Tax Benefits – A Complete Guide

As the saying goes, Health is wealth, and to maintain good health you need to give it utmost priority. Hence it confirms the importance of getting regular preventive health check-ups. Rather than waiting for a disease to strike you, it is always better to keep a check on your health. This way, the disease can be diagnosed sooner, and you don’t have to spend thousands of rupees in curing it.

Apart from the health benefits, preventive health check-ups benefit you in terms of tax deductions as well.  You can use the preventive health checkup Section 80D proof to get a concession on the income tax you pay.

In this article, we are discussing the various advantages of getting preventive health check-ups as well as will talk about the benefits in terms of tax deductions that you can enjoy by means of regular check-ups.

What is a Preventive Health Check-up?

Preventive health check-up means medical check-up of a person which is done to assess a person’s health in general. Such check-ups allow the timely detection of illnesses and infections among people. Some diseases show symptoms clearly, while others are asymptomatic and remain unnoticeable. Without preventive medical check-ups, these diseases remain unnoticed and are mostly diagnosed at a later stage. This delays the treatment and chances of recovery.  

Hence, it is important to invest in a comprehensive health insurance policy that offers regular preventive health check-ups to keep you updated with your health and to take action immediately if any condition is detected. 

You already know that you can get a tax exemption on the paid premiums towards health insurance under section 80D. However, it might interest you further to know that you can also avail of tax exemption on preventive health under section 80D. The exemption on preventive health check-ups was initiated to encourage more and more people to avail of this option.

Also Read: Comprehensive Health Checkup for Health Insurance

What is section 80D?

Anyone who has bought a health insurance policy for themselves and their family and is an individual or a member of a HUF (Hindu Undivided Family) is eligible to claim tax deductions under Section 80D of up to INR 25,000.

Documents Required for 80D Preventive Health Check-up Deduction

You would be glad to know that no documents are required to file an 80D preventive health check-up deduction.  The Preventive Health Check-Up Act u/s 80D has not made the requirement of any document compulsory for tax deduction claims.

Though no documents are asked by the IT department. However, for your record, it is better to maintain records of such expenses as the payment slips of doctor’s consultation fees, X-ray bills, bills of diagnostic tests, etc. You can make the payment for preventive health check-ups in any mode you like such as cash, online, UPI, etc.

Is proof required for preventive health checkup 80D?

No, the IT Act does not make it compulsory to submit proof to claim tax benefits under Section 80D. However, it is better to keep a record of such expenses that you incur throughout the year like premium receipts of health insurance, medical bills, test report bills, and so on. This is for safety purposes in case your employer asks you for any documentary evidence while issuing Form 16 for filing ITR or for a tax deduction.

Can medical expenses be claimed under 80D?

Yes, one can claim medical expenses under section 80D and can save tax. The insured can claim expenses on self, his/her spouse, dependent children, and parents. The parent’s age should be 60 years or above to be eligible to claim the medical expenses (if they don’t have any health policy).

A maximum of INR 50,000 can be claimed in a financial year by the insured. The insured must make the payment for the medical expenses in various online modes except cash payment to claim the deductions.  

Also Read: How Can You Get Free Medical Check-Ups Under Your Health Insurance?

Why Are Preventive Health Check-ups Needed?

Like servicing is essential for smooth running of most machinery, our body, which is also like an intense machine that works efficiently and helps us keep going, requires preventive check-ups. So, our health deserves regular check-ups. However, we tend to avoid preventive check-ups and ignore our body most of the time.

In many cases people are seen rushing to the doctor with a sudden feeling of pain or uneasiness in their body. The doctor prescribes medicine and tests to them. Once they take the medicine and relieve their discomfort, people tend to forget about the tests required to be performed. This is generally the case with most of us. And then one fine day, the body hits hard on us by giving up proper functioning and causing you immense hospital expenses.

Thus, to avoid such situations it is necessary to get regular check-ups, and health insurance is a sure shot way of getting health check-ups without worrying much about your finances. So, getting a mediclaim policy that offers enough security against critical diseases as well as covers your preventive health check-ups is important so that you can mitigate the sudden medical shocks.

Yes, you can reduce your health challenges by pursuing Preventive health check-ups, but it must be done regularly on standard intervals like annual, biannual, and so on. Besides, you are also getting benefits of tax by means of preventive health check-up 80D proof.

Now, let us discuss another important question, which is, whether you can get Tax Deductions on preventive health check-ups or not.

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Who is eligible for deduction under Section 80D? 

The premium of medical insurance paid by the insured for self as well as other family members and the medical expenses incurred for parents above 60 years is allowed in case of taxpayers in the category of Individuals and HUFs only. 

So, the Individuals or HUFs can avail of the tax deductions for the paid premiums for the below:

• Self 
• Spouse 
• Dependent children 
• Parents

No other entity is allowed under this category to claim a deduction. For instance, a company/firm is not eligible to claim a deduction under 80D.

Am I Eligible for Tax Deductions on Preventive Health Check-up Costs?

Yes, of course. Preventive health check-up does have a role to play in your income tax returns and tax deductions, and it was implemented by law in the year 2013-14.

Below are rules for claiming preventive health checkup deduction on income tax:

• Expense on preventive health check-up can be incurred during a specific financial year.
• If you get your own health check-up done, or of your partner/spouse, your dependent children, or your parents, then only you can enjoy tax deduction by means of preventive check-up.
• Preventive Health Checkup 80D Limit: Tax benefits on preventive health check-up can be received generally in terms of money. The deduction amount you are entitled to receive can be money spent during the fiscal year on preventive check-ups or 5000 rupees, (whichever is less, but not beyond Rs. 5000). Further, you must note that this amount of 5,000 rupees is included within the general mediclaim insurance premium limit of Rs. 25,000.
• There is no extra deduction for senior citizens if they go through the preventive check-up.

Let us understand the calculation of the deduction by means of an example in different situations of a Mediclaim insurance premium:

Case 1:

Premium paid – Rs. 15,000

Cost of preventive health check-up – Rs. 10,000

So, tax deduction under Section 80D would be – Rs. 15,000 + Rs. 5,000 = Rs. 20,000

Case 2:

• Premium paid: Rs. 20,000
• Cost of preventive health check-up – Rs. 7,000
• So, tax deduction under Section 80D – Rs. 20,000 + Rs. 5,000 = Rs. 25,000

Case 3:

• Premium paid: Rs. 24,000
• Cost of preventive heath check-up – Rs. 2,000
• So, tax deduction under Section 80D – Rs. 24,000 + Rs. 1,000 = Rs. 25,000

Case 4:

• Premium paid: Rs. Nil
• Cost of preventive health check-up – Rs. 10,000
• So, tax deduction under Section 80D – Rs. Nil + Rs. 5,000 = Rs. 5,000

As mentioned above, irrespective of the preventive health check-up expense, the tax deduction cannot go beyond the overall tax deduction limit, which is 25,000 rupees. Further, this deduction can be claimed even if you don’t have a mediclaim policy.

What are the Tax Deductions Permissible for a Preventive Health Check-up?

Here are the tax deductions permissible for preventive health check-ups under section 80D:

• Premiums paid for availing health plans by individuals and HUFs 
• Premiums paid for availing health insurance plan top-ups
• For preventive medical check-ups
• Senior citizen’s medical expenses (in case they are not covered under a health plan)
• Contributions towards Central Government health schemes (if any)

Also Read: Health Insurance Claim Settlement Ratio

Payments eligible as deduction under Section 80D

Individual taxpayers or HUFs can claim tax exemption u/s 80D for the below-mentioned payments:

• Premium of medical insurance paid for the insured, his/her spouse, dependent children, and parents via any payment mode except cash
• Expenses incurred for preventive health check-ups
• Medical costs incurred on parents (60 or above years) who do not have coverage under any health insurance scheme
• If the insured is making any contributions to the health schemes offered by the Central Government or any other government-notified scheme

Few Other Points to Take Note of in Regard to Preventive Health Check up:

• Nothing has been specified by law about the kinds of medical tests that qualify under preventive check-ups. Thus, we can presume that any general cost incurred in preventive check-up should be eligible for deduction.
• Another good thing about preventive check-up deductions is that you don’t need to submit any receipt about the same to the department of income tax. However, it is advisable to keep preventive health checkup receipt of costs done in your tax file as proof which might be required later.
• You must also note that the preventive health check deduction can be claimed on an individual basis. If two individuals in the same family are working they can claim for tax deduction under Section 80D separately, thereby reducing their individual tax liability.

Also Read: Benefits of Buying Health Insurance before turning 30

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Conclusion

We all know that there has been a huge rise in lifestyle disorders lately. Moreover, irrespective of age, lifestyle diseases are engulfing one and all. So, it is better to get preventive health check-ups regularly to avoid unwanted ailments and diseases in life. Further, the tax benefits on preventive health check up 80D also serves as an added advantage that has been introduced by the Indian government to support health needs of people.

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