Medical insurance premium

if medical policy is in the name of assessee and regularly paid by him but in current fy paid by his sons bank account and the receipt of premium is in the name of assesse himself could assesse still claim exemption for medical insurance premium if he creates liability by sons name with amount equivalent to premium???
Replies (4)

yes...assessee eligible to claim the deduction of Medical Insurance premium

but sir could u please quote me refrence of any case law or section i would be obliged

Sir, i m not sure that there is any case law on such subject matter. but Deduction of Medical Insurace premium is available U/S 80D.

Dear Sanchit

Strictly speaking, as per law, I feel, the said assessee cannot claim deduction u/s80D in his return since the Act specifically lays down as one of the conditions for claiming deduction as "...payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.".

Instead of claiming it the assessee's return, why can't the son claim this amount in his return (which is permissible) as payment in respect of the parent's medi insurance, so that at least the family income in aggregate will remain the same? If so, ensure that the son has "taxable income" to the extent of the premium amount avaibale to claim the deduction to comply with the requirement of the section as to "payment out of TAXABLE INCOME".

But there will be small difference if the parent assessee is a senior citizen in which case the income tax slabs will be differenet for son and the parent, but then again the son will get the additional Rs.5000 deduction if this is the case.

Regards

Ajay

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