Active Stocks
Wed Jun 12 2024 15:59:40
  1. Tata Steel share price
  2. 182.25 0.50%
  1. Tata Motors share price
  2. 988.60 0.15%
  1. Power Grid Corporation Of India share price
  2. 324.60 2.54%
  1. NTPC share price
  2. 371.35 1.02%
  1. State Bank Of India share price
  2. 839.15 0.47%
Business News/ Money / Personal Finance/  Income Tax: How to avail tax benefits under Section 80D through preventive health checkups?
BackBack

Income Tax: How to avail tax benefits under Section 80D through preventive health checkups?

Preventive health check-ups are important for the early detection of diseases and can lead to better outcomes. Under section 80D of the Income Tax Act, individuals can avail tax benefits for preventive health check-ups.

Section 80D of the Income Tax Act, 1961, allows an individual to claim a deduction of up to Rs. 25,000 (Rs. 50,000 for senior citizens) in respect of any expenditure incurred on preventive health check-ups. (Image by Gerd Altmann from Pixabay)Premium
Section 80D of the Income Tax Act, 1961, allows an individual to claim a deduction of up to Rs. 25,000 (Rs. 50,000 for senior citizens) in respect of any expenditure incurred on preventive health check-ups. (Image by Gerd Altmann from Pixabay)

Preventive health checkups, as the name suggests, are medical tests or examinations conducted with the aim of detecting health problems at an early stage before they become more serious. The goal of these checkups is to identify any potential health issues or diseases before they can become more serious or even life-threatening.

Preventive healthcare is an important aspect of overall health and well-being, and it can be a costly affair. The government of India has taken a number of initiatives to promote preventive healthcare and encourage individuals to go for regular health check-ups.

To further incentivize individuals to take preventive health measures, the Income Tax Act, 1961, provides tax benefits for medical check-ups. Under section 80D, individuals can avail tax benefits for preventive health check-ups.

Section 80D of the Income Tax Act

Section 80D of the Income Tax Act, 1961, allows an individual to claim a deduction of up to Rs. 25,000 (Rs. 50,000 for senior citizens) in respect of any expenditure incurred on preventive health check-ups. This deduction is allowed only if the check-up is done at a pre-approved Government or private hospital/diagnostic centre. Taxpayers are also required to submit relevant bills and documents as proof of expenditure.

READ MORE: Income Tax: 3 sections of insurance should be prioritised while tax planning

This deduction can be claimed either by the individual for himself, parents, spouse or dependent children. The amount spent on preventive health check-ups will be deducted from the total taxable income of the individual. This deduction is available to all taxpayers, including salaried individuals, self-employed professionals, business owners, and HUFs.

Importance of preventive health checkups

One of the main benefits of preventive health checkups is that they help to detect any existing health issues at an early stage. Early detection can lead to timely treatment, leading to better outcomes for the patient. For example, if cancer is detected early, the chances of survival are much higher than if it had been detected later on in its progression. Similarly, conditions such as diabetes or high blood pressure can be treated more effectively when detected earlier.

READ MORE: Income Tax Planning: 5 tax-saving options other than Section 80C

Regular checkups also provide individuals with an opportunity to receive advice from their doctor about lifestyle changes which may help reduce their risk of developing certain health problems. This includes recommendations on diet and exercise, as well as advice on reducing stress levels. Making small lifestyle changes can have a huge effect on overall health and well-being.

Preventive health checkups also give individuals the chance to discuss any medical concerns they may have with their doctor. This helps to ensure that any symptoms or questions the patient has, are addressed properly and that any necessary investigations or referrals are made.

Points to remember

Taxpayers must remember that deduction under Section 80D is only applicable if the medical check-up is done at an approved hospital/diagnostic centre. Moreover, the bill/receipt should clearly specify that the payment was made for a preventive health check-up. Taxpayers should also keep all relevant bills and documents handy as they may be required to submit them while filing their tax returns.

READ MORE: Budget 2023: From tax exemption on insurance premiums to fiscal deficit; here's what FM proposed

In addition to the deduction under Section 80D, taxpayers can also avail other deductions for medical expenses such as Section 80DD for the medical treatment of a disabled person, Section 80DDB for the treatment of certain diseases, and Section 80U for medical expenses related to a handicapped person.

Preventive health check-ups are important for early detection and management of diseases. Regular medical check-ups can help identify potential illnesses before they become serious and lead to a financial burden. Therefore, it is important to make use of the tax benefits provided by the Government on preventive health check-ups.

These are the top income tax savings instruments in India
View Full Image
These are the top income tax savings instruments in India

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 10 Feb 2023, 08:21 AM IST
Next Story footLogo
Recommended For You