Deduction of group insurance mediclaim premium

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This query is : Resolved

Suryadevara Kalyan (Querist)
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14 October 2009 My employer is providing us health insurance cover through group mediclaim policy.
My employer pays 50% premium for the health insurance of the employee+ Dependent family members, balance 50% premium deducted from employee salary.
Please advice in this case the amount will be claimable under Section 80D for my individual tax computation.
And for the above case accounting treatment etc, Please advise.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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14 October 2009 U should get deduction as it has been paid from ur taxable income but as you are not paying directly to insurance company the claim may not be tenable.( in absence of the premium paid certificate in ur name )

Your employer should pay his contribution and should collect cheque from employees favouring The Insurance Company and thus u can get Premium paid certificate in ur name.

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K V Subba Rao

K V Subba Rao (Expert)
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14 October 2009 A good and practical suggestion

Juzer Sadikot

Juzer Sadikot (Expert)
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14 October 2009 Dear Suryadevara

You can take advantage of following text of Section 80D of IT Act

"payment of which is made by any mode, other than cash"

You can say payment made by you through employer qualifies on above.

Further, your employer can give you form 16 and which may prove useful to justify your claim.

Else, Sanjay Sir has given good practicle suggestion.

With regards to Accounting Entries, Plz clarify accounting entry in the books of Employer or yours?

Regards