12 min read
Updated on Oct 25, 2023
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.
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.
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.
The deduction of INR 25,000 is allowed under Section 80D in a financial year. Senior citizens can get a deduction of up to INR 50,000.
The table below explains the deduction amount that an individual taxpayer can avail of:
|Insurance Plan||Deductions (for Self & family)||Deductions (for parents)||Maximum Deduction|
|For insured and family (below the age of 60)||INR 25,000||–||INR 25,000|
|For insured and family plus parents
(all of them below 60 years)
|INR 25,000||INR 25,000||INR 50,000|
|For insured and family (below 60 years) plus parents (above 60 years)||INR 25,000||INR 50,000||INR 75,000|
|For insured and family plus parents (all of them above 60 years)||INR 50,000||INR 50,000||INR 1,00,000|
|HUF members (below 60 years)||INR 25,000||INR 25,000||INR 25,000|
|HUF members (few members above 60 years)||INR 50,000||INR 50,000||INR 50,000|
You may note that a deduction of INR 5,000 for preventive check-ups is also included within the overall limit of the deduction.
For senior citizens who are Indian residents and above the age of 60, a deduction of up to INR 50,000 can be claimed for costs incurred on their medical treatment. This is under situations where senior citizens are not covered by any medical insurance. However, if senior citizens are covered under an active health insurance policy, they cannot claim this deduction.
For instance, suppose you have incurred INR 60,000 for the medical expenses of your parents who are senior citizens. You can claim INR 50,000 as a deduction even if they are not covered under a health insurance policy.
Multi-year health insurance policies are preferred by many policyholders, especially as they allow discounts on premiums. Under such policies, the premium is paid upfront in one go. In such cases, the policyholders can enjoy a uniform deduction under section 80D. However, the deduction received under such plans is limited to a maximum of INR 25,000 or INR 50,000 as applicable.
For instance, suppose you purchased a 2-year duration health insurance policy by paying a lump sum premium of INR 30,000. So, you can claim a deduction of INR 15,000 each on both the years of the two-year term under Section 80D.
Below are some factors to consider while purchasing health insurance from the point of view of claiming a deduction and other factors:
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.
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.
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.
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.
Also Read: Health Insurance without Medical Checkup
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:
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.
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:
Let us understand the calculation of the deduction by means of an example in different situations of a Mediclaim insurance premium:
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
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.
Here are the tax deductions permissible for preventive health check-ups under section 80D:
Also Read: Health Insurance Claim Settlement Ratio
Individual taxpayers or HUFs can claim tax exemption u/s 80D for the below-mentioned payments:
Here are the important things to remember:
Section 80DD allows individuals who belong to a HUF or Hindu Undivided Family and individuals who are caring for a dependent disabled person to avail of income tax deductions. The deductions can be claimed on the insurance premium paid to incur costs related to medical expenses, medicines, and other requirements of a disabled person.
As per section 80DD, the deduction limit permitted is up to INR 75,000 for up to 40% disabilities, and disabilities of 80% and more, INR 1.25 Lakhs is the annual limit for availing deductions u/s 80DD.
The list of dependents includes spouses, parents, siblings, children, or any other family member under HUF.
Under section 80DDB, one can seek tax deductions against costs incurred for treating specified diseases of the insured or a family member. Thus, an individual or HUF can claim a tax deduction under section 80DDB for treatment of a specific ailment, subject to conditions and capping under the policy.
A list of specified diseases or ailments under 80DDB are:
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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Preventive healthcare refers to actions you can take to ward off various illnesses. This includes getting immunizations and flu shots, as well as choosing to have blood work done, cancer screenings, blood pressure and cholesterol checks, diabetes screenings, HIV screenings, and more.
Individuals who receive preventive health examinations are eligible for tax deductions of up to INR 5000 per fiscal year under Section 80D of the Income Tax Act.
One can claim a maximum amount of INR 5000 per financial year against preventive health check-ups.
A deduction u/s 80D can be availed by every individual including non-resident Indians, and HUFs. However, senior citizens who are residents of India can avail of a high limit of deductions, which is not available in the case of senior citizens who are non-resident Indians.
There is no specific document required to be submitted to the income tax department for claiming a deduction during the ITR filing process. However, it is good to keep records of payment/receipt of insurance premiums in your tax file.
Things that are not considered for deduction u/s 80D are:
- Premiums of Health Insurance paid in cash are not considered
- Premium payments made for your independent and working children, grandparents, siblings, and other relatives are also not considered
- Premiums of group health insurance that employers pay on behalf of employees are also not considered for deductions
Yes. A deduction of up to INR 50,000 can be claimed for medical expenses incurred for your parents (if they are above 60 years). You need to have the bills and receipts for the expenses paid. Payment should be done via any other mode except cash.
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