Got a preventive health check-up? Don’t forget to claim tax deduction

Health is one of the most overlooked areas by Indians. People are ready to invest in properties, cars and entertainment, but not on health. Nonetheless, the Department of Income Tax has reserved a small provision for deduction under preventive health check-up. Any tax payer can claim a deduction upto ₹5,000 per assessment year on account of preventive health check-up of self or close relatives. However, this deduction forms a part of the deductions allowed under Section 80D. However, you can get deduction u/s 80D up to Rs.60,000/-.

How much deduction is available for preventive health check-up?

As the current norms, an assessee can claim a deduction upto ₹5,000 for preventive health check-up. It should be noted that if the amount spent by the assessee for preventive health check-up is less than ₹5,000 then the actual spend amount will qualify for deduction. On the other hand, if the amount spent by the assessee for preventive health check-up is more than 5,000 then only ₹5,000 would be claimed as deduction.

Who all are included?

  • Taxpayer
  • Taxpayer’s spouse
  • Taxpayer’s parents
  • Taxpayer’s children
  • Taxpayer’s dependents

Who are all NOT included?

  • Taxpayer’s in-laws
  • Taxpayer’s children who are financially independent
  • Taxpayer’s siblings
  • Taxpayer’s uncle, aunt, cousin and other distant relative

Payment Mode

The payment can be made in any mode. You are also eligible deduction under section 80D of preventive health checkup if payment made in cash. But the health insurance premium will only be eligible for deduction under section 80D if paid other than cash.

Computation of Deduction under preventive health check-up

Computation of deduction under preventive health check-up is included in the accumulative deduction offered under Section 80D, that is, ₹25,000. Let’s take 2 scenarios to clear any doubts.

SCENARIO #1

Suppose Mr. Vikash has spent ₹5000 on his health insurance, ₹5000 on his spouse’s health insurance and ₹10,000 on his father’s health insurance. Along with these expenses, he has also paid for his father’s preventive health check-up that amounts to ₹4,000.

In this case, the total available deduction available to Mr. Vikash under Section 80D is ₹(5,000 + 5,000 + 10,000 + 4,000) = ₹24,000.

SCENARIO #2

Suppose Mr. Varun has spent ₹10,000 on his health insurance, ₹10,000 on his spouse’s health insurance and ₹10,000 on his father’s health insurance. Along with these expenses, he has also paid for his father’s preventive health check-up that amounts to ₹8,000.

In this case, the total available deduction available to Mr. Varun would be ₹35,000 only. This is because total amount spend is ₹(10,000 + 10,000 + 10,000 + 8000) = ₹38,000.

As, you can get tax deduction of preventive health checkup to to Rs.5000 only.

SCENARIO #3

Suppose Mr. Vinay has spent ₹10,000 on his health insurance, ₹10,000 on his spouse’s health insurance and ₹10,000 on his father-in-law’s health insurance. Along with these expenses, he has also paid for his father-in-law’s preventive health check-up that amounts to ₹6,000.

In this case, the total deduction available to Mr. Vinay would be ₹20,000. Contribution to health insurance for self and spouse would qualify (₹10,000 each), but contribution made for father-in-law will not qualify. Moreover, amount for preventive health check-up will also not qualify as it has been incurred on account of his father-in-law. Therefore, even if Mr. Vinay has spent ₹36,000 [10,000 + 10,000 + 10,000 + 6000], only ₹20,000 qualifies for deduction under Section 80D.

Health insurance premium & preventive health checkup is allowed for deduction under section 80D for Father’s in law.

Check – Deduction 80D Calculator AY 2018-19

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