If you’re planning on undergoing a preventive health check-up, you can take advantage of the tax benefits (Preventive health checkup deduction) provided by Section 80D of the Income Tax Act. Under this section, individuals who undergo preventive health check-ups can enjoy tax deductions of up to INR 5000 per financial year. You can also avail tax benefits on the amount spent on preventive health check-ups for your spouse, children and parents.
Preventive health checkup deduction
Do you have a medical insurance policy? If so, you might be eligible for tax benefits under Section 80D of the Income Tax Act.
To claim these benefits, you need to file Form 16 on or before the due date of your return (Form 16). The details of your medical insurance policy should be mentioned in that form.
Section 80D of the Income Tax Act, 1961 allows eligible taxpayers to avail tax deductions on the total premium paid towards health insurance in a financial year. It is available on regular health insurance premiums along with the premiums paid for top-up plans and critical illness plans. You can avail Section 80D deduction on premiums paid towards buying health insurance for self, spouse, dependent children and parents.
No Tax Benefits on Cash Payment
You’ll need to make sure that the payment method is non-cash. If it’s not, then you won’t be able to claim a Section 80D deduction.
Medical insurance premiums should be paid through non-cash modes to be eligible for Section 80D deductions of the Incomes Tax Act. You can pay the premium through online banking, cheque, demand draft, debit or credit cards, etc. Section 80D deduction is not accessible on cash payment of the premium. However this condition does not apply to the payment for preventive health check-ups under Income Tax Act as they are exempt from cash payment rules too! You can avail preventive health check-up deduction even if the payment was made in cash.
A health checkup is a good way to save money on your taxes. You can save upto 5000 INR every year under section 80D of the Income Tax Act, 1961.
Health checkup is not just about getting a medical checkup, it also includes other preventive measures from various diseases. Your doctor will advise you on what you need to do to stay healthy.
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