Health insurence exemption

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This query is : Resolved

Ramana Rao (Querist)

03 April 2012 the husband paid and taken health insurance
for himself, wife and children for rs 12500
my question
can wife claim exemption under sec 80D? as her income is around 2.5 lakhs
husband will not claim as he has income of
only 1.75 lakhs

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)

04 April 2012 Please go through the provision of Sec 80 D which are as under -
11.2.6 Deduction in respect of medical insurance premium [Section 80D]
(i) Section 80D provides for deduction of upto Rs.15,000 for mediclaim premium paid by an
individual to insure the health of self, spouse and dependent children. If any of the persons
mentioned above are senior citizens, the maximum deduction would be Rs.20,000 instead of
Rs.15,000.
(ii) A further deduction of upto Rs.15,000 is provided for mediclaim premium paid by him to
insure the health of his parents, whether or not they are dependent on him. If either of the
parents are senior citizens, the maximum deduction would be Rs.20,000 instead of Rs.15,000.
(iii) Government employees, including retired employees of the Government, and employees
of certain autonomous bodies contribute every month to the Central Government Health
Scheme (CGHS) to avail of medical benefits under such scheme.
(iv) It has now been provided that contribution to CGHS by such persons would be eligible for
deduction section 80D, however, subject to the overall limit specified in (i) above.
(vi) In the case of a HUF, deduction is allowed under this section in respect of premium paid
to insure the health of any member of the family. The maximum deduction available to a HUF
would be Rs.15,000 and in case any member is a senior citizen, Rs.20,000.
(vii) The other conditions to be fulfilled are that such premium should be paid by any mode,
other than cash, in the previous year out of his income chargeable to tax. Further, the medical
insurance should be in accordance with a scheme made in this behalf by -
(a) the General Insurance Corporation of India and approved by the Central Government in
this behalf; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority.

Hence the person who is making the payment only he can claim the deduction. if the wife wants to claim deduction then the payment should be made from her account ( Bank Account or Credit Card) other than cash payment.

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