How To Claim 80D Deductions Without Paying Health Insurance Premium For Your Parents?

According to the Income Tax Department, under section 80D, any Indian citizen or Hindu undivided family (HUF) can claim or deduct medical insurance premiums paid in any given fiscal year from their overall income. In calculating the total income of an applicant, whether an individual or a Hindu undivided family, the amount paid by any method mentioned in sub-section (2B) out of his or her taxable income in the previous year is subject to a deduction. Individuals and HUF taxpayers can only claim a deduction against medical insurance premiums and medical expenditures for elderly persons.

Section 80D deduction in respect of health insurance premiums

Apart from the above said, the best part is that the deduction is also available for purchasing health insurance for the assessee or his family, which includes spouse and dependent children, or any contribution made to the Central Government Health Scheme or any other scheme as may be notified by the Central Government. The following is a list of the deductions allowed under section 80D.

The total amount paid to purchase or maintain a health insurance policy for the assessee or his family, or any contribution made towards the Central Government Government Health Scheme or payment made for such other scheme as the Central Government may notify in this regard, or any payment made for a health check-up for the assessee or his family, should not surpass Rs 25,000.

The total amount paid to purchase or maintain insurance by an individual on behalf of his or her parents or any payment made towards a preventive health check-up should be up to Rs 25,000.

The total amount paid for medical expenses for himself or any member of his family should be up to Rs 50,000 in a financial year. The entire amount paid on account of medical expenses expended on the health of any of the assessee's parents should be up to Rs 50,000 in any given financial year.

Payment mode and eligible individuals

Payment shall be made in any method, including cash, for any sum paid on account of a preventive health check-up or a medical insurance premium paid for self, spouse, children, or for dependent parents in any mode other than cash for deductions. If the assessee is a Hindu undivided family, the entire amount paid to effect or maintain insurance for any member of that Hindu undivided family should not surpass Rs 25,000 in total.

And the entire amount paid for medical expenses on behalf of any member of the Hindu undivided family should be up to Rs 50,000 in total to claim a deduction. In the case of senior citizens, the deduction limit allowed is Rs. 50,000. An assessee can claim a tax deduction of up to Rs 25,000 for purchasing insurance for himself, for his spouse, or dependent children.

For purchasing insurance for parents aged less than 60 years, a deduction is available of up to Rs 25,000, and for parents aged more than 60 years the deduction available is Rs 50,000 in a given financial year. Individuals, families, and parents over the age of 60 who pay a premium of Rs 50,000 for themselves, their families, and their children, and a premium of Rs 50,000 for their parents, are eligible for a total deduction of Rs 1 lakh.

How to claim an 80D deduction without paying a health insurance premium for your parents?

While we're on the subject of how to claim an 80D deduction without paying a health insurance premium for your parents, the country's largest lender State Bank of India (SBI) revealed today on Twitter that "Now save more! Avail 80D Deduction without paying Health Insurance premium for your parents. Simply log in to YONO & file your ITR with Tax2win for FREE."

Individuals can file their Income Tax Return (ITR) with Tax2win on YONO and claim all 80D deductions without paying Health Insurance premiums for their parents. Apart from that, taxpayers can have eCA assistance for just Rs 199. By login into YONO SBI >> Shop & order >> Tax & Investment >> Tax2win, eligible individuals can claim their 80D deductions.