Got blood, urine or X-ray tests done? You may enjoy Rs 5,000 tax benefit

Importance of an annual health care checkup can’t be denied even if one come up with the best of the arguments. While everyone know how important it is, most of us somehow tend to put it on a back burner. But, did you know getting a preventive health checkup has twin benefits? It not only keeps you better informed on the status of your health, but it also gives you an income tax benefit.

Do annual health check-ups actually benefit individuals? Image from Reuters

Do annual health check-ups actually benefit individuals? Image from Reuters

“Under Section 80 D of the Indian Income Tax Act, you can claim, within the existing limit (Rs 25,000), a deduction of up to Rs 5,000 for preventive healthcare checkup," says, Pankaj Mathpal, Certified Financial Planner and CEO of Optima Money Managers.

Under this section you are allowed to a deduction up to Rs 25,000 per year for medical insurance premium installments. The premium should be of a health policy bought for you, your spouse, and dependent children. In case, either you or your spouse is a senior citizen (60 years or above), the limit goes up to Rs 30,000. Under the same section you also get a tax benefit of Rs 5,000 for preventive health checkups, which means you can claim bills for diagnostic test like, blood tests, urine test, X-rays test and the like.

"Keep in mind, this Rs 5,000 limit is within the Rs 25,000 of Section 80D," says Mathpal

As per the IT rules you can claim the benefit even if the payment was made in cash, and not just card payment or cheque. So, in case you’ve gone to a relatively smaller medical diagnostic center which doesn’t have the facility to accept cards, and you’ve made a cash payment, you can still avail the tax benefit.

Most don’t have a personal medical policy, as they are covered by their employer in their workplace. And, even those who do have a personal medical policy, usually don’t end up paying a premium as high as Rs 25, 000. So, it makes perfect sense to get a preventive health checkup done and make the most of this section to get the tax benefit.

So, go ahead and don’t miss the chance of doing your annual health checkup, and attach the bills while submitting your investment proofs.


Updated Date: Mar 01, 2017 15:41 PM

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