Deduction is allowed for any medical insurance premium under an approved scheme of General Insurance. corporation of India, (popularly known as MEDICLAIM) or of any other insurance company, paid by any mode except cash, out of assessee’s taxable income during the previous year, in respect of the following:
Feature
This is an additional deduction after deduction u/s 80C because overall limit on deductions u/s 80C, 80CCC and 80CCD is Rs. 1,00,000. (Sec.80CCE). See below example.
For Whom Deduction u/s 80D is available
(a) In case of an individual- Insurance on the health (health insurance) of the assessee, or wife or husband, or [dependent] parents or dependent children.
(b) In case of an H.U.F.- Insurance on the health of any member of the family.
Amount of Deduction
For A.Y. 2008-09: Maximum Rs.15,000 (Rs.20,000 in case any person insured is a senior citizen).
For A.Y. 2009-10:(1) In case of an individual assessee :
An additional deduction upto Rs. 15000 (Rs. 20,000 in case of the person insured is senior citizen) shall be allowable in respect of medical insurance premium for parent(s) whether or not dependent on the assessee.
See Also: 12 things you must know before buy a health insurance
Example of Mediclaim deduction
If ‘A’ has paid medical insurance premium (mediclaim) u/s 80D as follows
| Deduction u/s 80C for PPF, NSC/LIC | 1,20,000/- |
| Medical Insurance Premium (Health Insurance Premium) |
|
| -For self, wife and dependent children | 18,000/- |
| -For parents (both Senior Citizens) | 22,000/- |
| Total Sum paid by ‘A’ | 1,60,000/- |
| Solution: Allowable Deductions | |
| Deduction u/s 80C for PPF, NSC/LIC | 1,00,000/- |
| Medical Insurance Premium | |
| -For self, wife and dependent children | 15,000/- |
| -For parents (both Senior Citizens) | 20,000/- |
| Total Allowable Deduction | 1,35,000/- |
2) In Case of an H.U.F, the maximum deduction is Rs. 15000 (Rs.20,000 in case any person insured is a senior citizen.)
Mode of Payment (Mediclaim)
Medical insurance premia may be paid by any mode (including by credit card, internet banking) except cash.
Related posts:
- Deduction u/s 80DDB of Medical Treatment
- 12 Things You Must Know Before Buy Health Insurance
- Health Insurance – The Basics
- Direct Tax Code (Changes in the Deduction and Exemption)
- Minimum Holding Time Limit for Claiming Deduction u/s 80C of Some Investments
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{ 2 comments… read them below or add one }
This information is very useful because you have given an illustration. Regards.
Dear Sir / Madam,
I got the information from this and understood properly by the given example.
But kindly further clear my doubt, for A Y 2011-12, Mediclaim deduction for self & spouse is upto Rs.15,000/- & for Parents (Below 60 Years) is upto Rs.15,000/-
So in total it is Rs.30,000/-
Kindly confirm the same.