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Deduction u/s 80d

Shivashish (Chartered Accountant) (2796 Points)

05 April 2014

Whether Service tax component and/or stamp duty component is deductible U/s 80D on Medi claim policy?

Whether i can claim deduction U/s 80D if policy is in my Mother name?(My mother income is non taxable. However mine is taxable. The reason i am asking this is because if policy is in my name then my parents and sister will not be covered under this and i would be required to take a seperate policy)

THANKS in Advance.

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6 Replies

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 06 April 2014

point no. 1

you may claim deduction u/s 80D for whole amount paid including service tax.

point no. 2

you are eligible to take benefit u/s 80D for medical insurance premium paid for your mother as well as sister.

Ramanuj (Accountant.) (834 Points)
Replied 07 April 2014

I think no require for seprate policy for mother. you can claim one policy name of your name & mother maximum limit have 35000/- u/s 80D

Shivashish (Chartered Accountant) (2796 Points)
Replied 07 April 2014

The point is if i take policy in my name then my mother and sister will not be covered..However if my mother takes policy then me and sister will also be covered. Therefore i was asking if i take medi claim in my mother name and claim deduction for it...??

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 07 April 2014

you may taker policy in your mother name and claim benefit u/s 80D thats it

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 07 April 2014

SECTION 80 D DEDUCTION REGARDING MEDICAL INSURANCE PREMIUM/ PREVENTIVE HEALTH CHECKUP PAYMENTS. 1) OVERVIEW: • Deduction under section 80 D is available for payment of medical insurance premium paid for Individuals, HUF and their members. • Now benefit is also available for expenditure incurred for preventive Health Check-up . 2) AVAILABLE TO: • For Individual, HUF (Hindu Undivided Family) • Whether Resident or Non- Resident. 3) ON LIFE OF: • Individual himself / herself • Spouse of Individual • Children (Dependent) • Parents (Dependent or not) Note: • Expenditure incurred on Preventive Health Check-Up of Parent is allowable only for dependent parents only. 4) MODE OF PAYMENT: • Payment must be through any mode other than cash i.e deduction is not available if medical insurance premium is paid in cash. • So pay medical insurance premium only through Cheque/ Net banking / Credit Card. However preventive health check-up expenditure can be incurred in cash. Note: • Such payment must be out of taxable income of assessee. 5) AMOUNT OF DEDUCTION: a) For policy taken for Assessee, Spouse and dependent children • Medical Insurance Premium paid or INR 15000/- Whichever is less. Note:  A sum of Rs. 5000/- is also available on account expenditure incurred on preventive health checkup but this is subject to maximum limit of INR 15000/- as aforementioned. b) For policy taken for Parents whether dependent or not. • Medical Insurance Premium paid or INR 15000/- (20000 if either parent is senior citizen) Whichever is less. Note:  If one has paid medical insurance premium for their family as well as for parents than one can claim deduction for both.  Senior citizen means a person who attain age of 60 year at any time during previous year.  A sum of Rs. 5000/- is also available on account expenditure incurred on preventive health checkup but this is subject to maximum of INR 15000/-or 20000/- as aforementioned. 6) EXAMPLE: a) An individual assessee pay INR 12500/- medical insurance premium for their family and INR 21000 for their parents than: i) A deduction of INR 27500/- (12500+15000) is available if their parents is not in category of senior citizens. OR ii) A deduction of INR 32500/- (12500+20000) is available if their parents is in category of senior citizens.

Shivashish (Chartered Accountant) (2796 Points)
Replied 07 April 2014

Ok...thanks..I was just confused with the fact that if my employer found certificate provided by insurer in my mothers name then they will not give deduction to me. thanks....