You can choose any mode of payment to pay for your medical insurance premium other than cash to claim tax benefits under this section. The perks will be available for the amount paid for the treatment of senior citizens (aged 60 years and above) along with medical expenditure for a preventive health check-up.
Preventive Health Checkup
Here is a side note for you to explain what preventive health check-up is all about. It is nothing but the annual health check-up that health professionals carry out mandatorily to curb a person’s health risk factors.
Section 80D of ITA allows you to claim an additional tax exemption for preventive health care capped with an upper limit of ₹5,000 per financial year in addition to medial insurance premiums for both you and your family members. This limit of preventive health care comes under the basic limit of ₹25,000 or ₹50,000 as the case may be.
Look at the following 80D calculation to understand it better -
Let’s assume you are supposed to pay ₹17,000 for your medical insurance premium in a particular financial year. Plus, you have opted for the preventive health check-up for yourself or your spouse and dependent children. In that case, you will be able to avail tax deduction under Section 80D of an additional amount up to ₹5,000, depending on your expenditure. The assessee can claim a total of ₹22,000 u/s 80D.
Additionally, if you have made certain contributions to any sort of schemes launched by the Government, you will also be able to avail tax benefits under this section.