How to Fill Schedule 80D in ITR With Example

Schedule 80D is part of the form used for filing income tax returns, and through this schedule, one is allowed to claim deductions for health insurance premiums and other expenses incurred toward health. Proper filling of this schedule can ensure optimum savings on taxes and that you get the full benefit accruable to you.

Understanding Schedule 80D

Schedule 80D in the ITR form allows taxpayers to claim deductions under the following mentioned expenses: 

• Health insurance premium paid for self, spouse, and dependent children
• Health insurance premiums paid for parents, whether dependent or not
• Medical expenditures incurred for self, spouse, and dependent children
• Medical expenses incurred for parents, whether dependent or not

The deductions claimed under Schedule 80D can make such a huge difference in your total tax liability that one needs to ensure that you fill it out correctly.

How to Fill Out Schedule 80D: Step-by-Step Guide

Step 1: Keep the Following Documents Ready

Before you start filling in Schedule 80D, ensure that you have the following documents in front of you: 

• Health insurance policy documents for self, spouse, children, and parents 
• Receipts or proof of payment against payment of health insurance premiums 
• Receipts or proof of payment against medical expenses 

With these documents, filling out Schedule 80D would be much easier. 

Step 2: Compute the Deductions Allowed

Mind that all deductions claimed under Schedule 80D of the Income Tax Act have certain limits and conditions. Now, eligible deductions are broken down as follows: 

Health Insurance Premiums 

• Any premiums on health insurance policies payable to you, your spouse, or dependent children are eligible to receive tax deduction benefits. 
• One can also claim for the health insurance premium paid for parents, whether dependent or otherwise.
• The upper limit of deduction on the health insurance premium is ₹25,000 for self, spouse, and dependent children, as well as ₹25,000 for parents. If any of your parents are a senior citizen, then the limit is ₹50,000.

Medical Expenditures

• As part of a welfare initiative for senior citizens aged 60 years or older residing in India and unable to obtain health insurance, a deduction of up to Rs. 50,000 is permitted for medical expenses incurred. This deduction applies provided no payment has been made to maintain health insurance coverage for these individuals.

It can be seen easily that the provisions related to deductions, especially for health insurance premiums and medical expenses, are very much conditioned and limited. Relevant provisions of concerned tax laws and regulations need to be referred to in order to claim correct amounts.

Step 3: Fill Out Schedule 80D

Now that you have the basic information, you can fill in Schedule 80D. 

Enter the details of the amount paid for self, spouse, dependent children and parents. 

Do ensure that you check your entries a second time to permit error-free declaration of amounts claimed with relevant supporting documents.

Example of Filling Up – Schedule 80D

Let us work on an example to clarify the filling out of Schedule 80D.

Assume the following:

Health insurance premium paid:

• For self, spouse, and dependent children: ₹ 30,000
• For parents: ₹ 20,000

Medical expenses incurred:

• For parents: ₹ 40,000

Now, filling up Schedule 80D would be as follows:

Deduction for Health Insurance Premiums

• ₹25,000 maximum deductions (Self, spouse, and dependent children)
• ₹20,000 actual amount paid (Parents)
• ₹40,000 actual amount incurred (Parents)

Total Deduction Under Section 80D

• Total deduction in this case: ₹30,000 + ₹20,000 + ₹40,000 = ₹90,000.

Here, in this example, against a total amount of ₹90,000, only ₹75,000 (₹25,000 for self, spouse and dependent children and ₹50,000 for senior citizen parents) deductions under Schedule 80D can be claimed, which will substantially reduce the tax liability of the whole tax. 

Conclusion

Filling out Schedule 80D in your ITR can be a great way of maximizing one's tax savings, but this has to be done rightly. You can be assured that you will claim, in full, the deductions offered by the Income Tax Act if you follow these steps and maintain proper documentation of payments of health insurance premiums and medical expenses incurred during that year.

Therefore, in case of specific queries or doubts about the matter, it is always advisable to consult a tax consultant with respect to your tax situation. Proper planning and attention to detail will enable you to reap maximum deductions related to Schedule 80D.

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