How your health check-up can save money this tax season
What's the story
Did you know getting a health check-up can actually save you money?
It's not just about staying fit — it's about cutting down your tax bill too!
Under India's Income Tax Act, Section 80D lets you claim deductions for medical insurance premiums and preventive health check-ups.
It's the government's way of saying, "Stay healthy, pay less tax!" Want to know how to make the most of it?
Here's a step-by-step guide to help you save while you safeguard your health.
Eligibility
Eligibility criteria for claiming deduction
In order to claim a deduction under Section 80D for health check-ups, the taxpayer should have incurred expenses on preventive health check-ups during the financial year.
These expenses can be for the taxpayer, spouse, dependent children, and parents.
Note that both resident and non-resident individuals qualify for this deduction.
However, HUFs can also claim this deduction if the expense is made on any member of the HUF.
Limit
Maximum deduction limit
The maximum amount deductible under Section 80D, only for preventive health check-ups, is ₹5,000 within the prevailing limit of ₹25,000 or ₹50,000, based on whether the insured are under 60 or over 60, respectively.
So, if you pay a premium for medical insurance and also spend on preventive health checks in a year, you can claim both but within these overall limits.
Coverage
Expenses covered under health check-up
Expenditure incurred on undergoing different kinds of medical tests as part of a preventive health check-up is also eligible for deduction under this section.
There is no specific limitation on the kind of tests, but they should be preventive in nature and not for diagnosis or treatment after the disease is detected.
Payment modes
Payment modes accepted
In order to claim the deduction for expenses incurred on preventive health check-ups under Section 80D, you can make payments in any mode except cash.
This means you can use debit or credit cards, cheques, demand drafts, or any other electronic means.
Just remember to keep the receipts as evidence of payment when claiming deductions at the time of filing taxes.
Maximizing benefits
Tips for maximizing benefits
One way to maximize your deductible limit is by planning your and your family members' preventive checks throughout the year. This way, you can strategically use the ₹5,000 limit without exceeding your overall deductible limit under Section 80D.
Plus, maintaining all receipts will save you a headache when it's time to file your taxes.