Ever wonder what 80D deductions could save you? We've put together this handy tool that gives you an estimate of what your deductions could be. Find out what percentage of your income is tax-deductible. Compute Section 80D tax exemptions now!

What is Section 80D exemptions?

Section 80D allows individuals and Hindu Undivided Families (HUF) to claim deductions on certain expenses done towards medical health insurance premiums from their taxable income. A person can claim deductions on the cost of health insurance and the cost of a preventive health examination for themselves, their spouse, their dependent children, and their parents. This is subject to the limitations and circumstances set out under Section 80D of the Income Tax Act 1961.

How to Calculate Deduction under section 80D?

Assume you're 60 years old and paying Rs.32,000 annual premium for your and your family’s health insurance. Aside from that, you're paying Rs.35,000 health premium for your parents' coverage, who are 80 years old. In such a scenario, you can obtain the following deductions under Section 80D:

• You (senior citizen) and your dependents can claim a tax deduction of the complete amount paid as health insurance premiums i.e.32,000. For your parents (senior citizens), you can avail a tax deduction of Rs.35,000.
• So, whole of the premium payment of Rs.67,000 can be claimed as deduction.

Eligibility Criteria for Section 80D Deductions

Only individuals and members of a Hindu Undivided Family (HUF) can claim these benefits. To qualify, you must pay for health insurance for yourself, your spouse, children, or parents. The deduction amount depends on who the policy covers and their age.

Mode of Payment- Any mode other than cash, but the payment of preventive health check up can be made in cash.

Aggregate payment for the preventive health check ups of self, spouse, dependent children & parents cannot exceed Rs 5000/-

Section 80D Deduction Under the New Tax Regime

The deduction for health insurance premiums paid is not available under the New Tax Regime.

Multi-year Health Insurance

These plans provide coverage for 2, 3, or even 5 years with a one-time upfront premium payment. While they offer convenience and potential discounts, claiming tax deductions for multi-year health insurance under the new tax regime follows a different set of rules.

What is the 80D Calculator?

Tax2win Section 80D calculator helps you calculate the deductions that you can avail on the medical health insurance policies for which 80D deductions are applicable.

How to Use the Tax2win 80D Tax Calculator?

To use the calculator, follow these steps:

• Step 1: Select the financial year
• Step 2: Select whether you are paying taxes under the new regime u/s 115 BAC
• Step 3: Enter whether the individual in whose name policy has been taken is 60 years or above in age or not.
• Step 4: Enter the value of Preventive Health Check-Up and Medical Insurance Premium Amount
• Step 5: Repeat steps 3 and 4 for your parent’s medical policies.
• Step 6: The total eligible deduction under 80D will be computed automatically and shown on the screen.

Benefits of Using 80D Calculator

In order to help you handle the complicated process of computing eligible deductions on medical and health insurance premiums and preventive health checkups , we have created an 80D deduction calculator that can help you save money on taxes. The 80D deduction calculator will automatically calculate tax deductions that you can claim based on your investment.

Eligibility of Using 80D Calculator

Individuals and HUF can claim deductions under section 80D. Therefore, only those individuals and HUFs who have paid health insurance premiums for Self, Spouse, Dependent children, and/or Parents can use this calculator for calculating the deductions they are entitled to.

What Deductions are Allowed Under Section 80D?

For claiming deduction u/s Section 80D, the premium should be paid in any mode other than cash. Although the expenditure on preventive health check-ups can be incurred in cash. The deduction for the following premiums is allowed under section 80D -