Question 1

What is the maximum deduction under Section 80D for health insurance?

Accepted Answer

For self/spouse/children: ₹25,000 (below 60 years) or ₹50,000 (60+ years). For parents: separate limit of ₹25,000 or ₹50,000 (if senior citizen). Maximum combined deduction: ₹1,00,000 if both you and parents are senior citizens. Preventive health checkup is included within these limits up to ₹5,000.

Question 2

Can I pay health insurance premium in cash and claim deduction?

Accepted Answer

No, cash payments are NOT eligible for Section 80D deduction. You must pay via cheque, bank transfer, credit/debit card, or online banking to claim the deduction. Only exception: preventive health checkup expenses up to ₹5,000 can be paid in cash and still be claimed.

Question 3

What is Section 80DD and how is it different from 80D?

Accepted Answer

Section 80DD provides deduction for expenses on a disabled dependent (spouse, children, parents, siblings). It's a fixed deduction of ₹75,000 (normal disability) or ₹1,25,000 (severe disability 80%+), regardless of actual expenses. Unlike 80D, it requires disability certificate from medical authority and is available under both old and new tax regimes.

Question 4

What diseases qualify for Section 80DDB deduction?

Accepted Answer

Section 80DDB covers specified critical illnesses: neurological diseases (Parkinson's, dementia, ataxia), malignant cancers, AIDS, chronic renal failure, hemophilia, and thalassemia. Deduction limit: ₹40,000 for patients below 60, ₹1,00,000 for senior citizens. Requires prescription from specialist doctor.

Question 5

Is health insurance deduction available under the new tax regime?

Accepted Answer

Section 80D (health insurance premium) is NOT available under new tax regime. Section 80DD (disabled dependent) IS available under both regimes. Section 80DDB (critical illness treatment) is NOT available under new regime. If you have significant health expenses, evaluate whether old regime saves more tax.

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