Deduction for Medical Insurance Premium Under Section 80D

Deduction for Medical Insurance Premium Under Section 80D. Section 80D provides deduction to an individual or a Hindu undivided family towards medical insurance premium and preventive health check-up or contribution to Central Government Health Scheme (CGHS) or any scheme notified by the Central Government on the health of the assessee, his family, parents or members of the HUF.

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Deduction For Medical Insurance Premium U/Sec 80d

Where the assessee is an individual, following expenditures are eligible for deduction:

  • (a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or “any contribution made to the Central Government Health Scheme” or such other scheme as may be notified by the Central Government in this behalf or any payment made on account of preventive health check-up of the assessee or his family and the sum does not exceed in the aggregate Rs. 25,000; and
  • (b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee or any payment made on account of preventive health check-up of the assessee or his family as does not exceed in the aggregate Rs. 25,000.
  • (c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family, who is senior citizen or very senior citizen and not having medical insurance, as does not exceed in the aggregate Rs. 50,000.
  • (d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee who is senior citizen or very senior citizen and not having medical insurance, as does not exceed in the aggregate Rs. 50,000.

Explanation: family means the spouse and dependent children of the assessee

Payment shall be made by any mode, including cash, in respect of any sum paid on account of preventive health check-up and by any mode other than cash in all cases other than preventive health check up.

Where the assessee is a Hindu undivided family, the expenditure eligible for deduction, shall be aggregate of the following namely:

  • (a) whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided Family as does not exceed in the aggregate Rs. 25,000
  • (b) whole of the amount paid on account of medical expenditure incurred on the health of any senior citizen or senior citizen member of the Hindu undivided family as does not exceed in the aggregate Rs. 50,000 and no amount has been paid to effect or to keep in force and insurance on the heath of such a person:

Provided Further that the aggregate of the sum specified under the clause (a) and clause (b) shall not exceed Rs. 50,000

In case of a senior citizen the amount shall not exceed Rs.50,000.

Note:- where amount is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified there in for more than a year, then, subject to the provisions of this section, deduction shall be allowed proportionately for each relevant previous year.

Explanation: For the purposes of this sub-section,

  • Senior citizen means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year

Deduction under Section 80D is also available in respect of contribution to Central Government Health Scheme. However this deduction is not available to HUF. Deduction is available to an individual and only in respect of health insurance policy taken for Individual himself, spouse and dependent children. If an individual takes an insurance policy on health of Parents whether dependent or not, deduction under thisSection will not be available.

Deduction under this section within the existing limit, in respect of any payment or contribution made by the assessee to such other health scheme as may be notified by the Central Government.

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