Deduction u/s 80d
This query is : Resolved
12 June 2012
In our case, company has taken a group mediclaim policy for all the employees. Till previous year the cost was borne by Company. In the current year company has started collecting premium on monthly basis from employees.
My question is that whether the same can be allowed under Section 80D to employees or as the company has taken group policy, employee can not claim the same.
My question is that whether the same can be allowed under Section 80D to employees or as the company has taken group policy, employee can not claim the same.
12 June 2012
Obviously, you are not entitled to get deduction u/s 80D as the amount was paid by company.
Company will get deduction of of mediclaim u/s 37(1)
Company will get deduction of of mediclaim u/s 37(1)
12 June 2012
In my opinion, as the company is collecting premium from the employees it would be the same as employees are directly paying to the insurance company. In that case, employees can claim deduction u/s 80D. It is only the facility that the employee is enjoying of making payments in instalments.
12 June 2012
Sorry Amit,
Till the last year it was not a perk in your hands as per proviso (iii) of section 17(2) of the IT Act, 1961.
from the current year, you will get the deduction u/s 80D.
Till the last year it was not a perk in your hands as per proviso (iii) of section 17(2) of the IT Act, 1961.
from the current year, you will get the deduction u/s 80D.
19 June 2012
Thank you all for your reply. But still I am confused whether an employee can claim it u/s 80D or not?
19 June 2012
You are paying the premium and not you company. Certainly, you will get the deduction u/s 80D.
19 June 2012
Thank you sir for your reply. My only worry is mediclaim policy is taken by company as a group policy. Employees do not have policy documents in their individual names. Can we still claim the deduction?
19 June 2012
Yes, even if you have not taken the policy and policy is taken by company but it is in your name and you had paid the premium. You will certainly get the deduction.
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