Tax tips: Did you know a blood test can give you a deduction benefit?

The next time you go for a blood test, make sure you keep your receipt safe, even after you’ve collected your test report. Why? You can use it to get a tax benefit. Yes, you heard it right.

“From Assessment Year 2013-2014, you can claim, within the existing limit, a deduction of up to Rs 5,000 for preventive healthcare check-ups,“saysAnil Rego, chartered accountant and wealth adviser based in Mumbai.

[caption id=“attachment_73581” align=“alignleft” width=“380”] This falls under Section 80 D of the Indian Income Tax Act, which give you a tax deduction of up to Rs 15,000 paid as premium of medical insurance policies. Reuters.[/caption]

Interestingly, it is not necessary that you make the payment by credit card or check. You can claim the benefit even if the payment was made in cash. Many a time smaller pathological laboratories don’t have the facility to accept cards, and cash is the only mode of payment.

We would suggest if you’ve not had your annual medical check done yet, you should do it before you submit your investment proof.

This falls under Section 80 D of the Indian Income Tax Act, which give you a tax deduction of up to Rs 15,000 paid as premium of medical insurance policies. Usually, a medical policy of Rs 4-5 lakh would only cost much less premium amount and you end up not being able to take the entire benefit the section offers. So a preventive healthcare check up will help you make the most of it.

“Keep in mind, this Rs 5000 limit is within the Rs 15,000 of Section 80D,” says Rego.

Remember that you can claim within the limited amount the expenses you have made for preventive health care check-up for your spouse, dependent children and parents as well.

So the next time you do a urine or a blood test, they are not only useful in timely detection of illness, they help you get a tax deduction too.