Write a short note on deduction u/s 80D of the Income Tax Act.
Understand the Problem
The question is asking for information about tax deductions under Section 80D of the Income Tax Act, which pertains to deductions available for premiums paid on health insurance and preventive health check-ups.
Answer
Section 80D allows deductions on medical insurance premiums for self, family, and senior citizens up to ₹50,000.
The final answer is Section 80D of the Income Tax Act provides tax deductions on premiums paid for medical insurance for self, spouse, parents, and dependent children. Individuals and HUFs can claim up to ₹25,000 for non-senior citizens and ₹50,000 for senior citizens. Deduction of ₹5,000 is available for preventive health check-ups.
Answer for screen readers
The final answer is Section 80D of the Income Tax Act provides tax deductions on premiums paid for medical insurance for self, spouse, parents, and dependent children. Individuals and HUFs can claim up to ₹25,000 for non-senior citizens and ₹50,000 for senior citizens. Deduction of ₹5,000 is available for preventive health check-ups.
More Information
Section 80D is beneficial for taxpayers seeking to lower their taxable income by covering themselves, their family, and even elderly parents under a medical insurance policy. It encourages individuals to secure their health financially.
Tips
A common mistake is not being aware of the different deduction limits for senior and non-senior citizens as well as additional deductions for preventive health check-ups.
Sources
- Section 80D - Tax Benefits & Deductions on Health Insurance - iciciprulife.com
- Section 80D - All about Deductions for Medical and Health Insurance - hdfclife.com
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