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Deduction in respect of Health or Medical Insurance Premium [ Section 80D]

  1. Essential Conditions for Claiming Deduction in respect of Health or Medical Insurance Premium under this Section:

  2. Quantum of Deduction under Section 80D

  3. Maximum Deduction Amount under Section 80D

1. Essential Conditions for Claiming Deduction in respect of Health or Medical Insurance Premium under this Section:

  1. Deduction is permissible, under this section, only to an individual or HUF.

  2. Deduction is allowed for the following purpose—

    1. In case of an individual: It is allowed for—

      1. the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or his parent or parents, or

      2. any contribution made to the Central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf.

      3. any payment made on account of preventive health check up of the assessee or his family or check up of the parent or parents of the assessee.

    2. Family means the spouse and dependent children of the assessee

    3. In the case of a HUF:

      It is allowed for the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu Undivided Family.

    4. In case of very senior citizen:

      Deduction on account of medical expenditure incurred (instead of sum paid to effect any insurance of the health).

  3. The health insurance should be in accordance with a scheme framed in this behalf by (a) GIC and approved by the Central Government, or (b) any other insurer and approved by the Insurance Regulatory and Development Authority.

  4. The payment should be made by him by any mode of payment other than cash. However, for preventive health check up, it can be made in cash also.

  5. The amount is paid out of his income chargeable to tax.

2. Quantum of Deduction under Section 80D

  1. Where the assessee is an individual:

    The deduction allowed shall be the aggregate of the following, namely:—

  2. (a) (i) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his spouse and dependent children or

    (ii) any contribution made to the Central Government Health Scheme (CGHS) as does not exceed in 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 (whether dependent or not) of the assessee as does not exceed in aggregate Rs. 25,000.

    However, for preventive health check-up of assessee his family or his parent or parents, the maximum amount allowed shall be limited to Rs. 5,000 and such amount subject to maximum limit of Rs. 5,000 shall be within the overall ceiling of Rs. 25,000 given in (a) or (b) above.

  3. Where the Assessee is a Hindu Undivided Family (HUF) :

    The deduction allowed shall be the 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 aggregate Rs. 25,000.

    Additional Deduction of Rs. 5,000:

    Where the sum specified in clause (1)(a) and (b) and (clause (2) above is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, an additional deduction of Rs. 5,000 shall be allowed in each case.

  4. Deduction on account of Medical Expenditure incurred (instead of sum paid to effect any Insurance of the Health) to be allowed in case of very senior citizen

    The individual may also claim the following deduction:

    1. the whole of the amount paid on account of medical expenditure incurred on his health or any member of his family as does not exceed in the aggregate Rs. 30,000; and

    2. the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate Rs. 30,000.

      However, the following two conditions must be satisfied to claim deduction of the amount referred to in sub-clause (i) or sub-clause (ii) above:

      1. The amount should be paid in respect of a very senior citizen, and

      2. no amount should have been paid to effect or to keep in force an insurance on the health of such person.

      Further that the aggregate of the sum specified under clause (1)(a) and clause (3)(i) above or the aggregate of the sum specified under clause (1)(b) and clause (3)(ii) above shall not exceed Rs. 30,000. [ The monetary limit of deduction has been raised from Rs. 30,000 to Rs. 50,000 w.e.f. A.Y. 2019-20]

3. Maximum Deduction Amount under Section 80D

The maximum deductible amount and other relevant points are given below –

Maximum Deduction Amount under Section 80D

Notes –

  1. Family includes individual, spouse of the individual and dependent children of the individual.

  2. Parents include father and mother (dependent or otherwise). Father-in-law and mother-in-law are not included.

  3. The aggregate payment on account of preventive health check-up of self, spouse, dependent children, father and mother cannot exceed Rs. 5,000.

  4. The above payments [given under (A) and (B)] should be made by any mode other than cash. However, payment on account of preventive health check-up can be made by any mode (including cash).

  5. “Senior citizen” is a resident individual who is at least 60 years of age at any time during the previous year.

  6. In case of single premium health insurance policies having cover of more than one year, the aforesaid deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided.

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
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