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Service tax on medical insurance

Tax queries 534 views 3 replies

For claiming deduction u/s 80D, is service tax on Medical Insurance Premium Allowed?

Replies (3)
yes, the total amount paid by way of premium is allowed as deduction and it includes service tax paid thereon also.

But there are some sites which say that service tax should not be deducted. Is there any circular in this regard?

I Think there is no cirlular as such but As per Section 80D of IT Act, any sum paid to effect or to keep in force an insurance on the health is eligible for deduction.

Service tax on mediclaim is a statutory levy which is to be paid along with premium to keep in force the policy.

Thus, it is the amount paid towards mediclaim insurance and should be eligible for deduction.


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