Section 80D in Respect to Health Insurance Premiums
Deduction under Section 80D is available as per the provisions of the Income tax Act, 1961.
Que 1 ) How is eligible for medical Insurance Premium?
Individuals and Hindu Un-divided Family (HUF) only
Que 2 What is Mode of Payment allowed for Medical Insurance Premium?
Ans : The Medical Insurance premium can be paid by any mode of payment other than cash.
Que 3) What is maxmium Deduction available under section 80D of Income tax Act? –
Ans: For individuals less than 60 years of age, amount of health insurance premium paid or Rs. 15,000, whichever is lesser. ( From 01.04.2015, Limit for medical insurance premium is increased to Rs 25000/-)
For senior citizens above 60 years, amount of health insurance premium paid or Rs. 20,000, whichever is lesser.( From 01.04.2015, Limit for medical insurance premium is increased to Rs 30000/-)
Que 4) : Who can be covered under section 80D?
Ans: For an individual: Premium paid for insuring the health of the individual, his or her spouse, parents and children.
For a HUF: Premium paid for insuring the health of any member of the family.
Que 5): Are parent and parent in law covered under section 80D?
Ans: No, parents and parents in Law are not covered under section 80D .
Que 6) : Is premium paid for dependent children allowed?
Ans: Children above 18 years, if employed, can not be covered.
Male children, if not employed, but a bonafide student can be covered upto age of 25 years.
Female children, if not employed, can be covered until the time she is married.
Que 7) : I have already contributed under section 80C, Can i still claim 80D benefit?
Ans: Yes , you can claim full benefit of section 80 C (Rs 150,000/- ) as well as of section 80D.
Que 8 ) : We have one mediclaim policy and me and my father both are paying 50% payment. Can we both claim 80D benefit?
Ans: Part payment of premium is allowed. Both of , you can avail the deduction for the amount contributed by you and your parents too could avail deduction for their contribution.
Que 8 ) : What is the limit for Preventive Health Check-up ?
Ans: Limit of Preventive Health Check-up is Rs 5000/-.
Payment for Preventive Health Check-up can made by an assessee for self, spouse, dependent children or parents(s) during the year
Preventive Health Check-up payment can be made by any mode including cash.
Please note this limit of Preventive Health Check-up of Rs 5000 is within total limit of Rs 25000/- allowed under medical insurance under section 80D.
It means that if assessee pays medical insurance of Rs 21000 and Preventive Health Check-up of Rs 5000/- for self/ spouse/ or children then he will be allowed Rs 25000/- only.