Preventive health check up has been introduced as an allowed income tax deduction from the financial year 2012-2013 by which from assessment year 2013-2014 you can claim deduction for your preventive health check up under section 80D of income tax act.
According to section 80D of income tax act, an individual will be eligible for tax deduction on amount spent for preventive health check up for self, spouse, dependent children or parents.
Deduction Limit for Preventive Health Check up – Section 80D
Section 80D specified that deduction for preventive health check up should not exceed the limit of Rs.5000 i.e. if you are spending more than Rs.5000 on health check up then your deduction under section 80D will be restricted to Rs. 5000. If you are spending less then Rs.5000 then actual amount spent will be allowed as deduction.
Section 80D deals with payment of health insurance premium. It clearly specifies that to get eligible for income tax deductions you are required to make your payment towards health insurance premium in any mode other than cash. However, for Payment of preventive health check up section 80D allow you to make your payment in any mode including cash. So, for your health check up you can make your payment through credit card, NEFT, debit card, cash or any other mode.
Rs. 5000 deduction that we discussed above for preventive health check up is included in your overall limit of Rs. 15000 as specified in section 80D of the income tax act. If you are paying health insurance of Rs. 15000 or more then you cannot claim deduction for health check up as you already crossed the overall limit. Similarly, if you are not crossing the limit of 15, 000 rupees then the difference amount (i.e. 15000 minus the amount paid towards insurance) will be eligible for income tax deduction for preventive health check up to the maximum limit of Rs.5000.
If the person for whom health insurance premium has been paid is a senior citizen then deduction under section 80D will be Rs. 20,000 instead of Rs. 15,000. By this increase your health check up eligibility will be within the higher bracket of Rs. 20,000 instead of Rs.15, 000 as discussed above.
If you are paying health insurance premium for your parents then in addition to the above limit you will also be eligible for additional deduction up to Rs. 15000 in case your parents are not senior citizen. If they are senior citizen then the deduction under section 80D will be Rs. 20,000 instead of Rs. 15,000. Rs. 5000 deduction for preventive health check up for your parents will also comes within this limit of Rs.15, 000 or Rs.20, 000.
To claim tax deduction under section 80D for health check up expenses, you are required to collect bills from where you have done your health check up and then submit photocopy of such bills to your employer at the yearend while providing self declarations. Non salaried person has to keep the bill with them and are not required to submit it along with income tax return. In case required, bills are to be produced to income tax officer on demand.