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Jan 2024

All you need to know about tax benefits for preventive health checkups

Posted By Suborna Fermi Posted on Jan 17, 2024

Having health insurance is one of the best investments you could make to take care of medical expenses during an emergency. Even though there are many people who are still unaware of the huge benefits of health insurance. If you only rely on your hard-earned savings for medical emergencies, you will end up draining your entire life savings and having bad loans.

That is the reason why our government has announced tax benefits under Section 80D of the Income Tax Act of 1961 to encourage people to buy health insurance. In this article, we have covered the essential aspects of tax benefits for preventive health checkups.

What is Section 80D of the Income Tax Act?

Section 80D of the Income Tax Act of 1961 provides a tax deduction of up to 25,000 rupees on health insurance premiums paid in a year. The tax deduction increases up to Rs. 50,000 per year for people aged 60 years or older. You can demand a tax deduction under Section 80D on a health insurance policy purchased for yourself and your family.

In addition to that, policyholders or individuals can benefit from a 5,000 rupee tax deduction on preventive health checkups. In accordance with the law, you can claim tax deductions on the cost spent on preventive health checkups, even if you are not covered by health insurance. The total tax deduction that you can benefit from health insurance premiums, and preventive health checkups is up to Rs. 25000-50000 annually.

Who is eligible for the tax deduction under Section 80D?

The tax deduction under Section 80D of the Income Tax Act 1961 is eligible only for individuals and Hindu Undivided Families (HUFs). No other entity can claim the tax deduction, including firms or organizations.

What deductions are acceptable under Section 80D?

An individual or Hindu undivided family can claim a tax deduction under 80D for the following:

  • Health insurance premiums paid for self, spouse, dependent children, and parents
  • Medical expenses incurred to support the health of senior citizens without any medical insurance
  • Payments made for the purpose of preventive health checkups
  • Payments for any government health insurance scheme

What is a preventive health checkup?

A preventive health checkup is a medical examination that is conducted frequently in order to make sure you are in good health. The following are the benefits of a preventive health checkup:

  • Early detection of diseases: Getting a regular preventive health checkup can help detect the disease early and lead to immediate treatment. Early detection increases the chance of survival.
  • Reduce the risk of complications: Early detection of a disease can decrease the risk of further complications that may arise in the advanced stage of the disease.
  • Saves healthcare costs: The treatment cost of disease at its early stage is much lower than its advanced stage.

To avail the benefits of tax deduction of Rs. 25,000/50,000 annually, you can book a thyrocare Aarogyam Tax Saver Basic or Aarogyam Tax Saver advance package for yourself and your family.

What is the maximum tax deduction under Section 80D?

You can claim a tax deduction of Rs. 5,000 under Section 80D annually on preventive health checkups. You can claim this tax deduction for yourself and your family. Therefore, if you or your family member conducts a preventive health checkup that has a cost of Rs.10,000, you can claim a tax deduction of Rs. 5000 at the time of filing your income tax returns. This tax deduction can also apply even if you pay the bills in cash.

Also remember that you can enjoy a maximum tax deduction of Rs. 25000 to Rs. 50000 collectively on your preventive health checkup bills and medical insurance premiums. Our government has announced a tax deduction under Section 80D to influence people to purchase health insurance. Get health insurance for yourself or your family to take care of the bills for medical emergencies.