The saying — Prevention is Better than Cure — is true not just for our well-being but also for our finances. Did you know that taking care of your health can also lead to some notable tax benefits? Yes, you read that right! Preventive health check-ups offer a two-fold advantage — they keep you healthy and help you save on taxes.

When you purchase health insurance online, you not only secure your health but also enjoy relief when it comes to taxes. You can claim a tax benefit for the health insurance premiums that you pay under Section 80D of the Income Tax Act. This means the amount you pay towards your health insurance policy or Mediclaim insurance gets subtracted from your total taxable income; this, in turn, lowers your overall tax liability.

What is a preventive health check-up?

Also known as a preventive medical examination or health screening, it refers to a set of medical tests and assessments conducted even when an individual is not experiencing any apparent symptoms or health issues. The purpose of these tests is to identify potential health problems early on before they develop into more severe conditions. These check-ups typically include a series of tests, evaluations and consultations that vary based on factors such as age, gender, medical history and family history.

They can cover a wide range of health aspects, including:

  • Basic health measurements like blood pressure, heart rate, Body Mass Index (BMI)
  • Blood tests for cholesterol, liver function test, etc.
  • Cancer screening
  • Heart health
  • Bone density test
  • Vision and hearing test
  • Immunisation
  • Nutritional and lifestyle assessments
  • Counselling and advice

These check-ups provide you with a comprehensive view of your health status and empower you to make informed decisions about your well-being.

What are the Tax Benefits of Preventive Health Check-ups?

Here are the tax benefits of preventive health check-ups:

Annual deduction limit: Under Section 80D of the Income Tax Act, one can claim a maximum deduction of INR 5,000 every financial year for preventive health check-ups.

Family coverage: The deduction is applicable not only to yourself but also extends to your spouse, children and parents, making it a comprehensive benefit for your entire family’s health.

Collective expenses: If you and your family members collectively spend INR 10,000 on preventive health check-ups, you can claim a health insurance tax benefit of up to INR 5,000, providing considerable tax relief.

Payment flexibility: Unlike health insurance premiums, which often require formal banking transactions for tax benefits, you can pay the bills for preventive health check-ups in cash and still qualify for deductions.

Double benefit: You can claim deductions on both your health insurance premiums and preventive health check-up expenses at the same time, maximising your tax savings.

Combined deduction: The combined maximum deduction available for health insurance premiums and preventive health check-ups ranges from INR 25000 to INR 50000, depending on age and other factors.

Age-related benefit: Taxpayers aged below 60 can claim deductions up to INR 25,000, while those aged 60 and above can avail of health insurance tax benefits of up to INR 50,000.

Holistic approach: Beyond the financial aspect, the health insurance tax benefit encourages a holistic view of personal well-being, emphasising the importance of regular health check-ups.

Financial security: By taking advantage of these tax deductions, you not only save on taxes but also contribute to your financial security by being prepared for unexpected medical expenses.

This provision incentivises individuals to focus on preventive health measures that promote early detection and mitigation of potential health issues.

Who is eligible to claim a deduction for preventive health check-ups under Section 80D?

Under Section 80D of the Income Tax Act, you are eligible to claim a deduction for preventive health check-ups for yourself, your spouse, children, parents and even your Hindu undivided family. This provision allows you to deduct the expenses incurred for preventive health check-ups from your total taxable income, reducing your tax liability. But remember, this deduction is subject to certain limitations specified by the government, so it’s essential to be aware of the maximum allowable deduction based on your situation.

What is the maximum amount you can claim for preventive health check-ups under Section 80D?

You can claim up to INR 5,000 per financial year for preventive health check-ups. This deduction is available not just for you but also for your spouse, children and parents. The tax deduction amount gets calculated by subtracting your health insurance premium from the maximum allowable deduction, ensuring a balanced approach to claiming benefits.

Additionally, there is a key point to consider — you can enjoy a maximum combined deduction of INR 25,000 or INR 50,000 on both your Mediclaim insurance premium and expenses from preventive health check-ups. For instance, if you are 40, you can claim a maximum health insurance tax benefit of INR 25,000. So if you have paid a health insurance premium of INR 22000 and incurred 6,000 in costs for preventive health check-ups within the same financial year, your tax deduction towards the health check-ups will be INR 3,000 (calculated as INR 25,000 – INR 22,000 = INR 3,000).

The Bottom Line

In a nutshell, taking care of your health is a win-win situation. By investing in health insurance or Mediclaim insurance, you not only safeguard yourself against unexpected medical expenses but also enjoy tax benefits. Moreover, coupling these policies with preventive health check-ups demonstrates your commitment to maintaining good health, which can lead to added advantages such as lower premiums or enhanced coverage.

So, don’t overlook the significance of preventive health check-ups. They not only keep you informed about your health but also contribute to your financial well-being. Remember, a health check-up today might save money and protect your health. In the end, it’s about making the most of available opportunities. With health insurance tax benefits, you can simultaneously secure your health and finances. It is a small step towards a healthier and financially brighter future.