query relating to Section 80D

This query is : Resolved

Tilak Agrawal (Querist)
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09 January 2009 Sir/Madam

My Previous Query was , Does the Maximum Limit Under Section 80D is Rs 20000/Rs 35000 or it is more than that for A.Y 2009-2010.
To Be more Clear i am giving following illustration.
Mr. X Invested Following in Medi claim Insurance.
Himself - 17000/-Rs
Dependant Wife-15000/-Rs.
Father Dependant(Senior Citizen)- 22000/-
Does Mr. X can Claim Rs 35000/-(i.e 15000/-rs on his policy and his wife's policy + Rs.20000/-on his father policy) or He can Claim Rs. 50,000/-or the maximum limit is 20000/-. for the assesment year 2009-2010.

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)
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09 January 2009 The maximum limit is Rs.20000/- if the parents of Mr.X are senior citizens. If the parents are not Senior Citizens then the maximum limit is Rs. 15000/-

Please find the below provisions given in IT Act.

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 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.

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