Part 80D supplies for tax deduction from the whole taxable revenue for the cost (by any mode apart from money) of medical insurance coverage premium paid by an Particular person or a HUF. This tax deduction is offered over and above the deduction of Rs. 1,50,000 below Sec. 80C.
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The deduction below Sec 80D is allowed for making a cost to impact or hold in drive an insurance coverage coverage which:-
- In case of an Particular person:- Is for the well being of the assessee or on the well being of the spouse or husband, dependent dad and mom or dependent youngsters of the assessee, or
- In case of HUF: Is for any Member of the Household
How a lot Deduction is allowed below Part 80D
The Deduction that may be claimed below Sec. 80D on the time of submitting of revenue tax return is the sum of the next:-
- In case the cost of medical insurance coverage premium is paid by the assesse for himself, partner, dependent youngsters – Rs. 25,000. In case, the particular person insured is a Senior Citizen, the deduction allowed needs to be Rs. 30,000.
- In case the cost of medical insurance coverage premium is paid by the assesse for fogeys, whether or not dependent or not – Rs. 25,000. In case the dad and mom of the Assessee are Senior Residents the deduction allowed below Part 80D needs to be Rs. 30,000. The deduction for senior residents has been elevated from Rs. 30,000 to Rs. 50,000 from Monetary Yr 2018-19 onwards (Introduced in Price range 2018).
Because the medical health insurance cowl for aged comes at a comparatively larger value, it’s essential to encourage senior residents to get themselves medically insured and accordingly, the quantum of tax deduction allowed below part 80D in case the particular person insured is a senior citizen is Rs. 30,000 as said above.
Thus, the whole most deduction that may be claimed below part 80D is as follows
| Description | Medical Insurance coverage Premium paid in respect of | Whole Deduction below Sec. 80D | |
| Self, Partner & Dependent Kids | Dad and mom (whether or not dependent or not) | ||
| No-one has attained the age of 60 years | Rs. 25,000 | Rs. 25,000 | Rs. 50,000 |
| Assessee and his household is lower than 60 years & dad and mom are above 60 years of age | Rs. 25,000 | Rs. 30,000 | Rs. 55,000 |
| Assessee and his dad and mom have attained the age of 60 years and above | Rs. 30,000 | Rs. 30,000 | Rs. 60,000 |
The steadiness revenue of the taxpayer after permitting deductions could be taxable as per the revenue tax slabs of the taxpayer.
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Illustrative instance on Part 80D
An Particular person Assessee pays throughout Monetary yr 2017-18, medical insurance coverage premium as below:-
- Rs. 24,000 as insurance coverage coverage premium on his personal well being &
- Rs. 29,000 as insurance coverage coverage premium on the well being of his dad and mom
Within the above talked about state of affairs the assessee could be allowed a deduction of Rs. 49,000 (Rs. 24,000 + Rs. 25,000) in case neither of his dad and mom is a senior citizen. Nevertheless, if any of his dad and mom is a senior citizen, he will probably be allowed a deduction of Rs. 53,000 (Rs. 24,000+ Rs. 29,000)
Additional within the above instance, if the price of insurance coverage on the well being of the dad and mom is Rs. 29,000/-, out of which Rs. 17,000 is paid by the son and Rs. 12,000 is paid by the daddy (who’s a senior citizen), out of their respective taxable revenue, the son will get a deduction below Part 80D of Rs. 17,000/- (along with Rs. 24,000 on his well being) and the daddy will get a deduction of Rs. 12,000.
*The deduction for senior residents has been elevated to Rs. 50,000 with impact from Monetary Yr 2018-19 onwards.
Particular Deduction for Tremendous Senior Residents
Tremendous Senior Residents are these residents who’re above the age of 80 years. Virtually, there are only a few insurers who present medical insurance coverage to people who find themselves above the age of 80 years. And subsequently, tremendous senior residents are unable to get medical insurance coverage and are additionally not in a position to declare the good thing about Part 80D.
To make sure that the tremendous senior residents are additionally in a position to take the good thing about this part, an modification was launched in Part 80D in Finance Act 2015 which allowed deduction below Part 80D to senior residents for all of the medical bills incurred by them.
After the introduction of this modification, the whole deduction allowed to tremendous senior residents for cost Medical Insurance coverage Premium + Medical Bills is Rs. 30,000. This restrict has been elevated to Rs. 50,000 with impact from Monetary Yr 2018-19 onwards.
Part 80D: Deduction for Preventive Well being Test-up
A brand new deduction that has been allowed below this part is deduction for Preventive Well being Test-up. A deduction of Rs 5000 could be allowed below Part 80D for cost of preventive well being check-up of both the person himself or his members of the family which embrace dad and mom and dependent youngsters.
This deduction of Rs. 5000 is just not along with the deduction of Rs. 25,000/Rs 30,000/Rs. 50,000 said above however is included within the above deduction.
It is very important be famous that Rs. 5000 is the most complete deduction allowed. This deduction is just not per particular person however in complete. So if an individual pays any quantity for preventive well being check-up of himself + dependent youngsters + dad and mom, the gross complete deduction allowed could be Rs. 5000. This deduction will apply from Evaluation Yr 2013-14 and onwards.