sanchit jain (self) (58 Points)
16 December 2013
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 16 December 2013
yes...assessee eligible to claim the deduction of Medical Insurance premium
sanchit jain
(self)
(58 Points)
Replied 17 December 2013
but sir could u please quote me refrence of any case law or section i would be obliged
CA Deepesh Ruhela
(Keen to Learn)
(3271 Points)
Replied 17 December 2013
Sir, i m not sure that there is any case law on such subject matter. but Deduction of Medical Insurace premium is available U/S 80D.
Ajay
(CA Job)
(512 Points)
Replied 18 December 2013
Dear Sanchit
Strictly speaking, as per law, I feel, the said assessee cannot claim deduction u/s80D in his return since the Act specifically lays down as one of the conditions for claiming deduction as "...payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.".
Instead of claiming it the assessee's return, why can't the son claim this amount in his return (which is permissible) as payment in respect of the parent's medi insurance, so that at least the family income in aggregate will remain the same? If so, ensure that the son has "taxable income" to the extent of the premium amount avaibale to claim the deduction to comply with the requirement of the section as to "payment out of TAXABLE INCOME".
But there will be small difference if the parent assessee is a senior citizen in which case the income tax slabs will be differenet for son and the parent, but then again the son will get the additional Rs.5000 deduction if this is the case.
Regards
Ajay
CAclubindia
