Claim 80D deductions without paying health insurance premium; here's how

Before filing ITR, an individual has to know the details of all types of tax deductions. Health insurance offers benefits of tax deduction to an individual. The relevant part of the Income Tax Act 1961 is section 80D. If you are going to file your ITR, please be updated about your health insurance expenditure since it can offer you an income tax deduction of up to Rs 1 lakh. So, before filing ITR must consult your tax advisor and proceed accordingly.

But you can get benefits under section 80D without even paying a single rupee health insurance premium for your parents.

Money9 gives you a guide.

This offer can be availed by those taxpayers who use SBI YONO to pay taxes. The country’s largest lender SBI recently twitted that “Now save more! Avail 80D Deduction without paying Health Insurance premium for your parents. Simply log in to YONO & file your ITR with Tax2win for FREE.”

Individuals can file their Income Tax Return (ITR) with Tax2win platform on YONO and claim all 80D deductions without paying a single rupee health insurance premiums for their parents. Apart from that, taxpayers can have eCA assistance for just Rs 199 for filing ITR through YONO.

Section 80D of the IT Act allows for the deduction for money spent on premiums towards you and your family’s health insurance and assumes great significance in your tax planning.

The amount spent as a premium for the health insurance policy for self and family members including parents is eligible for this deduction. The deduction range varies from Rs 50,000 to Rs 1 lakh depending upon the age of the tax payer and his/her parents, said Arvind Agarwal, a tax expert.

An individual can claim a deduction of Rs 25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for the insurance of parents is available up to Rs 25,000 if they are less than 60 years of age.

If the parents are aged above 60, the deduction amount is Rs 50,000. If both taxpayer and parents are 60 years or above, the maximum deduction available under this section is up to Rs 1 lakh – Rs 50,000 for self and Rs 50,000 for parents.

Taxpayers need to Login on SBI YONO app first from his/her registered mobile number. Then go to ‘Shop and Order’ section.

By clicking the option you will get ‘Tax and Investment’ option. There select ‘Tax2Win’ to file their ITR. It is a free service.

After clicking the option, one has to submit all relevant documents and information to complete the process.

It will take 15-20 minutes maximum to complete the filing. This is a limited time offer and will be available until  October 31, 2021.