Deduction u/s 80d

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Amit (Querist)
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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.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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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)

swasti

swasti (Expert)
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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.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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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.

Amit

Amit (Querist)
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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?

Amit

Amit (Querist)
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19 June 2012 Please reply

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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19 June 2012 You are paying the premium and not you company. Certainly, you will get the deduction u/s 80D.

Amit

Amit (Querist)
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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?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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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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