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Income Tax Update: How much tax exemption is available on health checkup, 95 percent taxpayers do not know..

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These days, with the second month of the financial year, the season of filing income tax returns is going on. The last date for filing ITR for the financial year 2023-24 is 31 July. While filing returns, the taxpayer can reduce the tax liability by showing various claims. According to the Income Tax Act-1961, tax can be saved by showing savings under many sections (tax exemption on health checkups). 

Mainly tax saving options are available under 80C, 80D, 80EE, Section 24, Section 80EEB, 80G, 80GG, 80TTA etc. Today we are only giving you information about one such exemption under 80D, which is rarely used by people. They are not even aware of it.

Let us tell you that under Section 80D, taxpayers are allowed to claim a deduction for medical insurance premiums paid for themselves and their families. Apart from the deduction for medical insurance premiums, this section also provides an exemption from a tax deduction for expenses incurred for preventive health checkups.

Preventive health checkups include medical tests and other investigations for early detection of diseases and monitoring the health status of a person. Such tests help in early identification of health risks, thereby preventing serious health problems.

Know how and how much tax exemption is available

According to the information, if you have paid money for a health checkup to know your health condition, then you will be entitled to this discount. An individual taxpayer can claim tax exemption on checkups up to Rs 5,000. He can also include the cost of checkups done on himself, his wife, children, and parents.

If your age is less than 60 years and you have insurance with an annual premium of Rs 20,000, then you can take advantage of it. If the annual premium of your health insurance is Rs 25,000 or above, then there will be no separate exemption on the cost of checkup (health checkup tax benefits).

For your information, let us tell you that this expense can also be included in the overall limit of deduction under section 80D. The overall limit for people below 60 years of age is Rs 25,000, while for senior citizens the limit is Rs 50,000.