Section 80D-Deduction under Medical Insurance for Senior citizens

Tax planning 319 views 3 replies

Ravichander RC

Service

120 Points Joined June 2009

Dear Friends,

If medical expenses are incurred for any senior citizens not covered under any medical insurance, then deduction can be claimed for the expenses incurred to the extent of Rs.50000.00 under Section 80D

If medical insurance is available. Due to some reason, the inpatient claim is disallowed by Insurance authorities. In such a case, whether the deduction can be claimed under section 80D based on the hospitalisation expenses incurred eventhough we have the medical insurance. Kindly let me know.

Thanks in advance.

Replies (3)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Yes. In that case hospital expenses can be claimed based on the payment upto 50k

CA Raj Doshi

Practising CA

8954 Points Joined December 2013

As per Section 80D
[(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate thirty thousand rupees; and
(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate thirty thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:

As per strict reading of the law, since premium is paid and the policy is in inforce, mere disallowance of claim will not amount to allowance of deduction under section 80D