General
80D Calculator
Financial Year
2023
The 80 D Tax Deduction is applicable only under Old Tax Regime.
Status
Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961 (herein after referred to as ‘the Act’). HUF is a separate entity for the purpose of assessment under the Act.
Jain and Sikh families even though are not governed by the Hindu Law, but they are treated as HUF under the Act.
Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.Health Insurance for Self/Family
0
25000
Health Insurance for Senior Citizens (Self/Family)
0
50000
Medical Expenditure of Senior Citizens
0
50000
Self or Family's Health Insurance Premium Amount
0
25000
Health Insurance for Parents ( Below 60 )
0
Health Insurance for Senior Citizen Parents
0
50000
Health Insurance for Self/Family ( Above 60 )
0
50000
Preventative Healthcare
Self or Family(Excluding Parents)
0
5000
Deduction Under Section 80 D
9,0000,0
Information relates to the law prevailing in financial year 2021-2022. This calculator is only to enable public to have easy access to basic tax calculation. For filing of returns the exact calculation must be made as per the provisions contained in the relevant Acts, Rules etc.
Section 80D Tax Deduction Calculator
The importance of health and the extent of expenses associated with it were made evident post-COVID. To help manage your finances better, availing of health insurance is a huge boon to an individual.
Additionally, another boon comes in the form of tax deductions on your health insurance premiums. Section 80D of the Income Tax Act, 1961 does exactly this!
Table of Contents
What Deductions is Allowed Under Section 80D?
Under Section 80D of the Income Tax Act, 1961, the deductions allowed are for:
- Health Insurance Premiums for self, spouse, dependent children or parents in any mode other than cash,
- Preventive health check-ups (up to a limit of ₹5,000),
- Health insurance premiums for resident senior citizens who don’t have any health insurance plans, and
- Contribution to Central Government Health Schemes in modes other than cash.
 The table below provides a detailed overview of deductions for specific scenarios depending on the age of the individual:
Let’s understand this better with an example:
Manoj is 36 years old, and his father is 75 years old. If he pays medical premiums of ₹30,000 and ₹35,000 respectively, he can claim deductions under Section 80D of ₹25,000 for the premium paid under his policy and ₹50,000 for his father’s policy (senior citizen). The deduction allowed for the year will be (₹25,000+₹35,000) ₹60,000.
Additionally, if he has opted for preventive healthcare, a ₹5,000 claim can be made within the limit for any category, if the total insurance premium paid is less than the maximum limit for that category. Â
He can also avail of tax benefits under this section for contributions to any sort of schemes launched by the Government.
Deduction under Section 80D
Hindu Undivided Families (HUF) and individuals are both eligible to deduct certain expenses from their taxable income under Section 80D. A person may claim deductions on the cost of their medical expenses, health insurance premiums, and preventative health examinations for themselves, their spouse, dependent children, and their parents.
Regular health insurance costs, as well as top-up and critical illness plan premiums, all qualify for an 80D tax deduction.
The 80D tax deductible is applicable only under the Old Tax Regime and is subject to the limitations set out in the Income Tax Act of 1961.
How does Preventive Health Check-up Work?
Preventive health check-up is a mandatory annual check-up carried out by healthcare professionals to curb a person's health risk factors. It is a step towards being more pro-active and identifying health risks at an early stage.
Under Section 80D, you can claim ₹5,000 for you and your family members, inclusive of the overall limit under preventive health check-up.
Let’s understand this with an example: Manoj’s medical premium is ₹20,000 and he availed preventive healthcare for ₹5,000. Under section 80D, he can claim up to the maximum limit of ₹25,000 (₹20,000 + ₹5,000). If Manoj’s health insurance premium is ₹25,000 and his preventive healthcare costs is also ₹5,000, then he can only claim the total limit of ₹25,000 for his premium.
How to use Digit's 80D Tax Deduction Calculator?
A person falls under the Hindu Undivided Family status if there is a coparcenary ship and ancestral property, qualifying the joint family unit as HUF. In income tax, HUF is considered a separate entity and is taxed separately. Forming a HUF is beneficial for optimizing tax liabilities and financially benefiting family members in the future as well. The income tax slab for HUF is the same as that for an individual.
For HUF
For Individual
Step 1
Enter the health insurance premium paid for family members and/or senior citizens.
Step 2
Next add the medical expenditure of senior citizens. The total eligible deduction under 80D will be computed automatically and shown on the screen.
Benefits of Using Digit's 80D Tax Deduction Calculator
To handle the complicated process of tax time, we have created an 80D income tax deduction calculator that helps you save money on your income tax. Digit's 80D tax deduction calculator will automatically calculate tax deductions that you can claim based on your investment.
Who is Eligible for Section 80D Deduction?
The deduction for medical insurance premiums/ medical expenses for senior citizens is applicable for Individuals and HUF taxpayers only.
Insurance can be availed for:
- Spouse
- Dependent Children
- Parents, and
- Self
Exemptions from this deduction are:
- You cannot claim tax deduction for the premium paid by your employer for group medical health insurance.
- Premium paid on behalf of working children, siblings, grandparents, aunts or uncles, or any other relatives.
- Any other entity cannot claim this deduction under Section 80D.
Things to Keep in Mind While Claiming Tax Deduction Under Section 80D
It is important to go through your tax exemptions in your policy carefully.
- It is better to avoid paying a premium in cash. Although payment for preventive health check-ups can be done through cash.
- The amount available for senior citizens' deduction can also be spent on medical expenses.
- A Health insurance premium paid at one go allows tax benefits for the number of years of insurance cover.
- If you purchase health insurance for yourself or your parents (both of whom are elderly citizens), the maximum deduction under section 80D is ₹ 1,00,000.
- This deduction is also available to HUFs (Hindu Undivided Families) for premiums paid to cover the health of any HUF member.
- Tax concessions under Section 80C of up to ₹1.5 lakh are in addition to those under Section 80D.
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A health insurance policy is beneficial not only to safeguard your medical expenses, but it is also used to avail tax benefits. You can avail of tax benefits on health insurance premiums paid under Section 80D of the Income Tax Act. This proves as a wise investment option, securing yours and your family’s future as well.
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