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Tax rebate under 80D ....

RAKESH JAIN (RETIRED COMPUTER PROFESSIONAL) (369 Points)

22 March 2010

My understanding is that tax rebate U/S 80D is available for all Individual/Family Floater Health/Mediclaim Policies. Recently I bought a policy but its document mentions that 80D is not applicable for it. They have not mentioned the reason for it. I am contacting company repeatedly to explain the reason but do not receive any reply. Can anybody suggest under what circumstances 80D may not apply to a Health Policy bought for a familiy?

Thanking you. Best regards, RAKESH

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10 Replies

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 22 March 2010

Section 80D :-

Deduction in respect of Medical Insurance Premium (Mediclaim) paid to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or HUF on the health of any members of the family. A Mediclaim policy is a must because should you fall sick or meet with an accident, your medical bills could wipe out your savings.

Features of Mediclaim policy

1. Premium based on Age: - As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.

2. Who is it available to?

Individual (resident or non resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse, parents or dependent children* of the taxpayer.
HUF(Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.

Note

Dependent Children (i.e. legitimate or legally adopted children). Children above 18 years, if employed, can not be covered. Male children, if not employed, but a bonafide student can be covered upto age of 25 years. Female children, if not employed, can be covered until the time she is married.
parents need bot be dependent on the Assessee.
parents of Individual or Spouse both are covered.

3. Entry Age: This insurance is available to a person between the age of 18 to 59 years. However, the Policy can be renewed upto the age of 80 years.

a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.

b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the age of 80 years the policy can be renewed beyond the age of 80 upto the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.

c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage. Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.

4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs. The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.

5. Payment of Mediclaim Premium out of taxable Income:- The amount must have been paid using the taxpayer’s income chargeable to tax.

1 Like

RAKESH JAIN (RETIRED COMPUTER PROFESSIONAL) (369 Points)
Replied 22 March 2010

Dear Mr. Rajat,

Thanks your reply but I am still looking for answer to "Under what circumstances, 80D is not applicable to a Healt/Mediclaim Policy?".

Thanking you. Best regards, RAKESH

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 22 March 2010

in my opinion u had taken personal policy ...........

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 22 March 2010

u might be confusing b/w medicliam & personal policy....

Dhruvesh Shah (partner) (443 Points)
Replied 22 March 2010

Originally posted by : RAKESH JAIN

1st u confirm it is mediclaim only???? And u cannot get deduction if the payment of mediclaim is made in cash then it is not available.

manikandan.J (Accounts Manager) (363 Points)
Replied 22 March 2010

dhruvesh shah Rabate on mediclaim Sec80D allowed only rs.15000 for individual and depends only

for example:A person individual he is not married he is liable to pay tax such the cirucumstances he can only claim Rs.15000/- self policy other than he can't claim any other person on your dependent, where as married person he can claim the family members that means spouse or dependent mentioned in the clearly Income tax ready reckoner refer the clearly

manikandan

manikandan.J (Accounts Manager) (363 Points)
Replied 22 March 2010

dhruvesh shah Rabate on mediclaim Sec80D allowed only rs.15000 for individual and depends only

manikandan

Dhruvesh Shah (partner) (443 Points)
Replied 22 March 2010

Originally posted by : manikandan.J
	hi dhruvesh shah Rabate on mediclaim Sec80D allowed only rs.15000 for individual and depends only for example:A person individual he is not married he is liable to pay tax such the cirucumstances he can only claim Rs.15000/- self policy other than he can't claim any other person on your dependent, where as married person he can claim the family members that means spouse or dependent mentioned in the clearly Income tax ready reckoner refer the clearly by manikandan

manikandan it is not like that. One can claim Rs.15,000/- on his, spouse and dependent children. And additional rs.15000/- on his dependent resident parents. And if individual or parents is senior citizen then the limit increases to Rs.20000/-

Kishor Dipnaik (Sr. Accounts Executive) (23 Points)
Replied 07 March 2012

Dear Sir,

If the mediclaim Policy is for 2 years. Payment of premuim made together for 2 years.

How should I claim it ?

1. Should I claim it for 2 years separately on yearly basis.

2. Should I claim it in the year when premium paid full amount.

regards,

Kishor Dipnaik

Anooj (Chartered Accountant) (2130 Points)
Replied 07 March 2012

Originally posted by : Dhruvesh Shah
	Originally posted by : manikandan.J hi dhruvesh shah Rabate on mediclaim Sec80D allowed only rs.15000 for individual and depends only for example:A person individual he is not married he is liable to pay tax such the cirucumstances he can only claim Rs.15000/- self policy other than he can't claim any other person on your dependent, where as married person he can claim the family members that means spouse or dependent mentioned in the clearly Income tax ready reckoner refer the clearly by manikandan manikandan it is not like that. One can claim Rs.15,000/- on his, spouse and dependent children. And additional rs.15000/- on his dependent resident parents. And if individual or parents is senior citizen then the limit increases to Rs.20000/-