Income Tax Calculator: Section 80D allows you this much of tax deduction; check experts' opinion
Income Tax Calculator 2020: Income tax slabs for FY2019-20 will remain the same for a taxpayer if it decides to continue with the same income tax slab not the income tax slab 2020 option being offered by Finance Minister Nirmala Sitharaman in the Budget 2020. According to tax and investment experts majority of the people know about Section 80C of the Income Tax Act as it allows them to claim a tax deduction on investment up to Rs 1.5 lakh in one financial year. However, there is Section 80D, that they also need to know. In Section 80D of Income Tax Act, a taxpayer can claim up to Rs 50,000 tax deduction in a particular financial year.
Speaking on section 80D of income tax act Jitendra Solanki, a SEBI registered tax and investment expert said, “An income taxpayer is allowed to claim Rs 25,000 tax deduction in a particular financial year for the insurance premium he or she has paid for one’s medical insurance. It is allowed on one’s medical insurance premium payment of spouse and children as well. However, in case either of the spouse is a senior citizen, then the claim goes up to Rs 50,000.” Solanki went on to add that under Section 80D of Income Tax Act 1961 allows an earning individual to claim expenses incurred on preventive health checkups up to Rs 5,000 for each financial year.
Highlighting other benefits of Section 80D of Income Tax Act Manikaran Singhal, a SEBI registered tax and investment expert said, “Under Section 80D of Income Tax Act, medical insurance paid for one’s guardian qualifies for an additional Rs 25,000 tax deduction in a budgetary year. In case, either of parents is a senior citizen, then the annual limit of tax deduction rises up to Rs 30,000 per annum.” Singhal said that the limit additionally subsumes Rs 5,000 that can be caused by the taxpayers’ parents’ annual health checkup. However, he reminded us that all these claims are permissible on the submission of the invoice. Cash payments for such heads are not allowed for the above-mentioned income tax deduction claims.