Income Tax Return: Visiting 80D page is a must even if you don’t have health insurance

Section 80D of the Income Tax Act contains tax benefits on health insurance premium and/or expenses made on preventive health checkup and/or cost of treatment.

With just a day left to file the Income Tax Return (ITR) for the Assessment Year (AY) 2020-21 before the due date gets over on January 10, 2021, unless extended, the assessees – whose income needn’t be audited – are in a hurry to file their return of income.

However, there are some issues that the assessees need to keep in their mind to complete the filing issues smoothly.

One of the issues is the page containing declaration of health insurance premium and/or expenses made on preventive health checkup and/or cost of treatment u/s 80D of the Income Tax Act.

For Individuals below 60 years of age

The first component u/s 80D is the health insurance premium, where, presently, an individual may claim deduction up to Rs 25,000 in a year for self and family of below 60 years of age. Such an individual may also claim deduction up to Rs 5,000 on preventive health checkup within the overall limit of Rs 25,000.

In such a case, you have to select ‘No’ against the question – “Whether you or any of your family member (excluding parents) is a senior citizen?” In case no deduction is claimed, you have to select, ‘Not claimed for self/family’, against the question.

For Senior Citizens

On the other hand, the deduction limit u/s 80D is Rs 50,000 for senior citizens, which may be claimed on payment of health insurance premium or on expenses for medical treatment, including cost of medicines, in case no insurance is there. Senior citizen individuals may also claim deductions on preventive health checkup within the overall limit of Rs 50,000.

In such a case, you have to select ‘Yes’ against the questions – “Whether you or any of your family member (excluding parents) is a senior citizen?”

For Assessees and Parents below 60 years of age

In case an assessee has incurred the expenses allowed as deductions u/s 80D for his/her parents, he/she may also claim deductions for the same along with deductions for self and family.

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In case, none of the family members and parents are senior citizens, total deductions allowed u/s 80D on expenses made for self and family and for parents are up to Rs 50,000 – i.e. up to Rs 25,000 for self and family and up to Rs 25,000 for non-senior citizen parents.

In such a case, you have to select ‘No’ against both the questions – “Whether you or any of your family member (excluding parents) is a senior citizen?” and “Whether any one of your parents is a senior citizen?”

For Individuals below 60 years and Senior Citizen Parents

Similarly, if expenses are made on self and family with no senior citizen member and on senior citizen parents, total deductions may be claimed u/s 80D is up to Rs 75,000, i.e. up to Rs 25,000 for self and family and up to Rs 50,000 for senior citizen parents.

In such a case, you have to select ‘No’ against the question – “Whether you or any of your family member (excluding parents) is a senior citizen?” and ‘Yes’ against the question “Whether any one of your parents is a senior citizen?”

For Senior Citizen Individuals and Parents

On the other hand, in case expenses are made on self and family having senior citizen members and on senior citizen parents, total deductions may be claimed u/s 80D is up to Rs 1 lakh, i.e. up to Rs 50,000 for self and family and up to Rs 50,000 for senior citizen parents.

In such a case, you have to select ‘Yes’ against both the questions – “Whether you or any of your family member (excluding parents) is a senior citizen?” and “Whether any one of your parents is a senior citizen?”

When No Deduction is Claimed

However, in case you are not claiming any deductions u/s 80D for self/family or for parents or for none, you still have to visit the 80D page to declare that you are not going to claim any deductions, else you won’t be able to submit your ITR.

In case no deduction is claimed, you have to select, ‘Not claimed for self/family’ and/or ‘Not claiming for parents’, against the questions respectively.