Jul12
2018Considering the rising inflation in health care sector in India, medical insurance policy has become a must for all. However, government has offered a sigh of relief particularly to lower and mid income group assessees by extending the amount of deduction which can be availed in respect of medical insurance premium. Section 80D of Income Tax Act, 1961 deals with this matter. According to section 80D, a deduction from gross total income can be availed in respect of medical insurance premium paid by an individual / HUF assessee up to certain limit. Such deduction can be claimed for premium paid for self, spouse, dependent children and parents. Similarly, an HUF can claim deduction in respect of premium paid for any of the members of HUF.
Who can claim deduction u/s 80D?
Rules for Individual:
Premium Paid For | Maximum Deduction |
Self & Family | 25,000 |
Self & Family + Parents | 25,000 + 25,000 = 50,000 |
Self & Family + Parents (Senior Citizen) | 25,000 + 50,000 = 75,000 |
Self (senior citizen) & family + Parents (senior citizens) | 50,000 + 50,000 = 1,00,000 |
Notes:
Rules For HUF:
Payment of Premium:
In order to avail any deduction, the amount must have been paid using the taxpayer’s income chargeable to tax. Moreover, the payment must be made using account payee mode only.
Part Contribution towards Medical Premium:
If only part payment is made by an assessee towards a medical premium, he/she can claim deduction up to the amount of premium paid by him/her.
Validity of Medical Policy:
Only such Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory & Development Authority (IRDA) can be claimed as deduction.