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Mediclaim U/s 80D

pooja (1) (139 Points)

25 March 2010

Hello to everyone,

If someone guide me the limit U/s 80D for Mediclaim, it is 15000/- & if it is 15000 more for your parents also, that means you can claim 30000/- for mediclaim.

Thanks

Pooja

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10 Replies

Suresh (CA Final Student) (177 Points)
Replied 25 March 2010

Hi Pooja i think the following is clarify ur doubt...

What is the amount of the deduction U/s 80D?

For Individual

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.

For HUF

Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

Senior citizen: means who is at least of 65 year of age or more at any time during the previous year.

EXAMPLE- 1
1. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premia, out of his taxable income, as under:

(i) Rs 12,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children;

(ii) Rs 17,000/- to keep in force an insurance policy on the health of his parents.

Under the new provisions he will be allowed a deduction of Rs 27,000/- (Rs. 12,000/- + Rs. 15,000/-) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs 29,000/- (Rs.12,000/- + Rs.17,000/). Whether the parents are dependent or not, is not a consideration for deciding the deduction under the new provisions.

Further, in the above example, if cost of insurance on the health of the parents is Rs 30,000/-, out of which Rs 17,000/- is paid (by any non-cash mode) by the son and Rs 13,000/- by the father ( who is a senior citizen), out of their respective taxable income, the son will get a deduction of Rs 17,000/- ( in addition to the deduction of Rs 12,000/- for the medical insurance on self and family) and the father will get adeduction of Rs 13,000/-.

EXAMPLE 2

An individual assessee pays through credit card during the previous year health insurance premium as under:

Rs. 12,000 to keep in force an insurance policy on his health and on the health of his wife and children
Rs. 17,000 to keep in force an insurance policy on the health of his parents.

Under the proposed new provisions, he will be allowed a deduction of Rs. 27,000 (Rs. 12,000 + Rs. 15,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 29,000 (Rs. 12,000 + Rs. 17,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 25 March 2010

Yes pooja, u r correct... its 35000, if its paid for u and ur parents who are senior citizen

pooja (1) (139 Points)
Replied 25 March 2010

Thanks for clarification but if parents are not senior citizens then

Richa (B.Com, CA Final Stdnt) (113 Points)
Replied 25 March 2010

hi Pooja,,,,,,,,,,,,,if parents are not senior citizen then only 15000 will be claimed as deduction for parents and 15000 for spouse and children, u/s 80d. nd 5000 additional in case od Senior citizen only.