15 March 2011
Facts of the case: I am working in a PSU from where my father retired in Nov-94. For the welfare of the retired employees, our company is providing Group Medi-claim policy through Insurance company. The premium is being shared between the company and retired employee on 50%-50% basis. I have paid Rs. 4000/- as premium from my taxable income for my parents's Group Medi-claim policy (our share only)through a cheque in the name of the PSU in which I am working, who in turn paid the full premium Rs. 8000/-(premium collected from the retired employees plus company's share) to the Insurance company towards the Medi-claim policy taken for retired employees. Under above mentioned senario kindly confirm whether the premium paid by me (Rs.4000/-) for keeping the Mediclaim policy of my parents live, is eligible for deduction under section 80-D from my total taxable income.
CAclubindia
