Ever wonder what 80D deductions could save you? We’ve put together this handy tool that gives you an estimate of what your deductions could be. Find out what percentage of your income is tax-deductible. Compute Section 80D tax exemptions now!
What is Section 80D exemptions?
Section 80D allows individuals and Hindu Undivided Families (HUF) to claim deductions on certain expenses done towards medical health insurance premiums from their taxable income. A person can claim deductions on the cost of health insurance and the cost of a preventive health examination for themselves, their spouse, their dependent children, and their parents. This is subject to the limitations and circumstances set out under Section 80D of the Income Tax Act 1961.
How to Calculate Deduction under section 80D?
| Self and family (Non Senior Citizen) | ₹25,000 | ₹5,000 | ₹25,000 |
| Self and family + parents (Non Senior Citizen) | ₹(25,000 + 25,000) = ₹50000 | ₹5,000 | ₹50,000 |
| Self and family (Non senior citizen) + senior citizen parents | ₹(25,000 + 50,000) = ₹75,000 | ₹5,000 | ₹75,000 |
| Self and family (senior citizen) + senior citizen parents | ₹(50000 + 50,000) = ₹1,00,000 | ₹5,000 | ₹1,00,000 |
Assume you’re 60 years old and paying Rs.32,000 annual premium for your and your family’s health insurance. Aside from that, you’re paying Rs.35,000 health premium for your parents’ coverage, who are 80 years old. In such a scenario, you can obtain the following deductions under Section 80D:
- You (senior citizen) and your dependents can claim a tax deduction of the complete amount paid as health insurance premiums i.e.32,000. For your parents (senior citizens), you can avail a tax deduction of Rs.35,000.
- So, whole of the premium payment of Rs.67,000 can be claimed as deduction.
Eligibility Criteria for Section 80D Deductions
Only individuals and members of a Hindu Undivided Family (HUF) can claim these benefits. To qualify, you must pay for health insurance for yourself, your spouse, children, or parents. The deduction amount depends on who the policy covers and their age.
Mode of Payment- Any mode other than cash, but the payment of preventive health check up can be made in cash.
Aggregate payment for the preventive health check ups of self, spouse, dependent children & parents cannot exceed Rs 5000/-
Section 80D Deduction Under the New Tax Regime
The deduction for health insurance premiums paid is not available under the New Tax Regime.
Multi-year Health Insurance
These plans provide coverage for 2, 3, or even 5 years with a one-time upfront premium payment. While they offer convenience and potential discounts, claiming tax deductions for multi-year health insurance under the new tax regime follows a different set of rules.
What is the 80D Calculator?
Tax2win Section 80D calculator helps you calculate the deductions that you can avail on the medical health insurance policies for which 80D deductions are applicable.
How to Use the Tax2win 80D Tax Calculator?
To use the calculator, follow these steps:
- Step 1: Select the financial year
- Step 2: Select whether you are paying taxes under the new regime u/s 115 BAC
- Step 3: Enter whether the individual in whose name policy has been taken is 60 years or above in age or not.
- Step 4: Enter the value of Preventive Health Check-Up and Medical Insurance Premium Amount
- Step 5: Repeat steps 3 and 4 for your parent’s medical policies.
- Step 6: The total eligible deduction under 80D will be computed automatically and shown on the screen.
Benefits of Using 80D Calculator
In order to help you handle the complicated process of computing eligible deductions on medical and health insurance premiums and preventive health checkups , we have created an 80D deduction calculator that can help you save money on taxes. The 80D deduction calculator will automatically calculate tax deductions that you can claim based on your investment.
Eligibility of Using 80D Calculator
Individuals and HUF can claim deductions under section 80D. Therefore, only those individuals and HUFs who have paid health insurance premiums for Self, Spouse, Dependent children, and/or Parents can use this calculator for calculating the deductions they are entitled to.
What Deductions are Allowed Under Section 80D?
For claiming deduction u/s Section 80D, the premium should be paid in any mode other than cash. Although the expenditure on preventive health check-ups can be incurred in cash. The deduction for the following premiums is allowed under section 80D –
| Type of Expense | Premium Paid |
| Medical insurance premium paid for individuals and families. | Rs. 25,000, Rs. 50,000(in case of senior citizen) |
| Medical insurance premium paid for your parents. | Rs. 25,000 Rs. 50,000(in case of senior citizen) |
| Expenditure on preventive health check-ups. | Rs.5,000 |
| Medical expenditure of senior citizens or super senior citizens. | Rs.50,000 |
| Contribution to CGHS/notified scheme. | Rs.25,000 Rs.50,000(in case of senior citizen) |
| Maximum amount of deduction (A+ B+C+D+E) Non-senior citizens(Self & family and Parents) Senior Citizens (Self & family and Parents) Self & family (Non-senior citizens)Parents(Senior Citizens) | Rs.25000+Rs.25000=Rs.50,000 Rs.50000+Rs.50000=Rs.1,00,000 Rs.25000+Rs.50000=Rs.75,000 |
Frequently Asked Questions
What investment comes under section 80D?
Section 80D allows you to claim deductions on the payment of health insurance premiums and the cost of a preventative health examination.
What is the limit of deduction under section 80D of the Income Tax Act, 1961?
The deduction limit under Section 80D for individuals below the age of 60 years is INR 25,000. The 25,000 limit includes a Rs 5,000 preventive health examination. If the insured is 60 years or above in age then the deduction limit is increased to INR 50,000.
Is the Tax2Win calculator safe to use?
Yes, the tax2win 80D deduction calculator is totally safe to use. The data you enter here is not stored and not shared with anyone.
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