Exemption u/s 80d.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2012 What is the limit u/s 80D for contribution towards parents health insurance policy who is senior citizen(65 years)

Could any body suggest with immediate effect.

Thanks & regards

CA Himanshu Sharma

CA Himanshu Sharma (Expert)
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10 March 2012 max limit is 20000 for parents

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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10 March 2012 For Senior citizen parents maximum deduction allowable under section 80D is Rs.20000.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2012 19[Deduction in respect of health insurance premia.

80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.

(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—

(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family 20[or any contribution made to the Central Government Health Scheme] as does not exceed in the aggregate fifteen thousand rupees; and

(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees.

Explanation.—For the purposes of clause (a), “family” means the spouse and dependant children of the assessee.

(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate fifteen thousand rupees.

(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or in sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, the provisions of this section shall have effect as if for the words “fifteen thousand rupees”, the words “twenty thousand rupees” had been substituted.

Explanation.—For the purposes of this sub-section, “senior citizen” means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.

(5) The insurance referred to in this section shall be in accordance with a scheme21 made in this behalf by—

(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]

Could any body suggest the meaning of the point No.4 above.

CA Himanshu Sharma

CA Himanshu Sharma (Expert)
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12 March 2012 in simple words u can say that deduction of rs 15000 for u & ur family

and 15000 is for ur parents
but if any of them is senior citizen them 15000 is replaced by 20000

it means u will get the deduction of rs 20000 for that

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