deduction under the income tax act 1961

1. 80D DEDUCTION
PREPARED BY: BHUPINDER KAUR
DEPARTMENT OF COMMERCE
S.D.COLLEGE, AMBALA CANTT

2. 80D: HEALTH ISNURANCE PREMIUM &
PREVENTIVE HEALTH CHECKUP
• ASSESSEE:
• Every individual or HUF
• Whether resident or not
• DEDUCTION CLAIM FOR :
• Individual / self
• Spouse
• dependent children
• Additional deduction : parent
• Whether dependent or not

3. Condition
•Amount deposited for premium other than cash.
 cheque
 account transfer
 demand draft
•Contribution towards health insurance plan has
to made to a scheme as specified by the Central
Govt./ approved by IRDA.

4. Quantum of Deduction
For individual, spouse and children
Age less than 60 years
Amount spent of
premium
Or
Rs.25,000
Whichever is less
For parents
Age less than 60 years
Amount spent of
premium
Or
Rs.25,000
Whichever is less
Maximum deduction upto rs.50000

5. Example
Rahul purchased a family health insurance and paid medical
insurance premium
• for self and spouse rs.23000
• and for father aged 55 years rs. 27000
Solution : a. for self and spouse
Premium paid : 23000 or 25000 whichever is less i.e 23000.
b. For father
Premium paid : 27000 or 25000 whichever is less i.e 25000.
Amount of deduction under section 80D : 47,000.

6. Quantum of Deduction
For self, spouse and children
Age : 60 years or above
Amount spent of
premium
Or
Rs.50,000
Whichever is less
For parents
Age : 60 years or above
Amount spent of
premium
Or
Rs.50,000
Whichever is less
Maximum amount of deduction Rs 1,00,000.

7. EXAMPLE
Himanshu purchased a family health insurance and paid medical
insurance premium
• for self and spouse aged 62 years : rs.55000
• and for father aged 80 years rs. 67000
• Solution : a. for self and spouse
Premium paid : 55000 or 50000 whichever is less i.e 50000.
b. For father
Premium paid : 67000 or 50000 whichever is less i.e 50000.
Amount of deduction under section 80D : 100,000.

8. Preventive Health Check-up
•Any payments made towards preventive health
check-ups will entitle a taxpayer to a deduction
of up to Rs.5,000, which is within the overall
limit of Rs.25,000/50000. The payment for
preventive health check-up can be made in
cash.

9. Example
• It is like a regular health check-up conducted once or twice every
year by your physician or general practitioner .
• The cumulative amount of deduction for this check-up is maximum
Rs. 5,000/- for yourself, your family and parents. Even cash payment
for this expenditure is eligible for 80D deduction.

10. Example
• MIP for self and spouse : 23000/-
• Preventive health check-up: Self and spouse : 2000/-
Solution :
MIP 23000 or 25000 whichever is less 23000.
Preventive health check-up : 2000 or 5000 whichever is less
2000.
Total amount of deduction : 25000