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Maximum Deduction U/s 80D

CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)

04 February 2010

hallo all,

Can you please tell me what is the Maximum amount of Deduction U/s 80d (Madiclaim). Whether 15,000 , 20000(When Parents are CC) or 30000

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30 Replies

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 04 February 2010

Rs. 15000/- in case of individual & Rs. 20000/- in case of parents are senior citizens.....

regards,

ratan

1 Like

Amir (Learner) (4016 Points)
Replied 04 February 2010

Dear Rajesh,

Friend Ratan has rightly mentioned but aggregate deduction can be claimed upto Rs. 35,000/-

1 Like

CA Vishal (CA working in industry) (620 Points)
Replied 04 February 2010

No The maximum deduction is 20K and not 35K .... The act states that incase parents are senior citizens then one acn increase the limit from 15K to 20K

1 Like

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 February 2010

Hi amir is correct....

The language of 80D says :

Basic deduction: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.
Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

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Amir (Learner) (4016 Points)
Replied 04 February 2010

Dear Hello,

Take this case

Mr. A Pays premium for himself Rs. 15,000 + for his parents (senior citizen) Rs. 20,000/?

Now How much he can claim u/s 80D..

20K OR 35 K???

Definately 35K, Subsection (2) clearly states that deduction shall be the "AGGREGATE OF THE FOLLOWING AMOUNTS.........."

1 Like

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 February 2010

So, the basic dedcution available to person for himself is 15000/20000 (as per his age)....

But, he can also avail another additional deduction for his parents, is also available for deduction....

1 Like

Amir (Learner) (4016 Points)
Replied 04 February 2010

Dear Dhiraj,

Ya now u r rite, I understand, sometimes these little things causes confusion.......

1 Like

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 February 2010

Yeah, initially i too thought that its just 20000..... but then remembered that we do file various returns and all... in that we ourselves allow assessee such deduction, then how can i deny overhere...

Nywz, thanx fr ur gesture

1 Like

C.Balaji (Learner) (1867 Points)
Replied 04 February 2010

Completely agree with Mr.Amir and Mr.Dhiraj

Rs. 15000/- in case of individual & Rs. 20000/- in case of parents are senior citizens.....

Mr.Amir i have a small query in this....

is the maximum limit is only Rs.35000 or Rs.40000???...when both the assessee and parents are senior citizens...

C.Balaji (Learner) (1867 Points)
Replied 04 February 2010

Mr.Amir

One more query...

Rs. 15000/- is maximum available to an assessee even he is a senior citizen....

Amir (Learner) (4016 Points)
Replied 04 February 2010

Dear Balaji,

U r rite that if assessee as well as his parents are senior citizen then maximum deduction can go upto Rs. 40,000, but my friend that is very remote case....