Section 80D:- Deduction of Medical Insurance Premium

Deduction u/s 80D

In this article we discuss about the concept of deduction u/s 80D which is available to Individual or HUF. In computing the total income of an assessee, being an individual or HUF (Hindu Undivided Family), their shall be deducted such sum, as insurance premium paid u/s 80D in the previous year out of his total income chargeable to tax.

Section 80D of Income Tax Act, 1961

Firstly we discuss about the case in which insurance premium paid by an individual for the health of assessee or his family. Family means spouse and dependent children of the assesse.
S. No. Individual Amount of Deduction
1. Insurance premium paid for Health or Preventive health check of Self, Spouse and dependent children. Rs. 25,000.00
2. Insurance premium paid for Health or Preventive health check of Parents. Additional Rs. 25,000.00
3. Insurance premium paid for Health or Preventive health check of Senior Citizen (Age above 60 years.) Deduction is increased from Rs. 25,000.00 to     Rs. 50,000.00
4. Medical expenditure incurred and no amount paid for the health insurance. (Applicable only for Senior Citizen)                                    Rs. 50,000.00
 

  1. A. Total deduction cannot exceed of Rs. 1,00,000/- in any case.
  2. Where the amount paid on account of preventive health check-up, the deduction for such amount shall be allowed to the extent it does not exceed of Rs. 5,000/-.
  3. In any mode other than Cash. But in case of preventive health check-up amount can be paid in cash.
  4. Senior Citizen means individual resident in India who is age more than 60 years or more at any time during the relevant previous year.
Secondly we discuss about the case in which insurance premium paid by an HUF (Hindu Undivided Family) for the health of the any member.
S. No. HUF (Hindu Undivided Family) Amount of Deduction
1. Insurance premium paid for Health of any member of HUF Rs. 25,000.00
3. Medical expenditure incurred and no amount paid for the health insurance. (Applicable only for Senior Citizen)                                    Rs. 50,000.00
  1. Total deduction cannot exceed of Rs. 50,000/- in any case.
  2. Senior Citizen means individual resident in India who is age more than 60 years or more at any time during the relevant previous year.

 Note:-

Where the 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 therein for more than a year then shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount.

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