Insurance Tax Benefits - Section 80 C of Income Tax Act 1961

Insurance: Tax Benefits

07/07/2018

Insurance: Tax Benefits

Section 80 C of Income Tax Act 1961

Individual and HUF get deduction under section 80C of Income Tax Act 1961.If insurance policy is taken by individual in the name of taxpayer his/her wife or children and in case of HUF in the name of members. Deduction is available subject to limit of Rs 150000 and subject to following conditions:

Particulars	Deduction upto
In respect of policy issued before 01.04.2012	20% of sum assured
In respect of policy issued on or after 01.04.2012	10% of sum assured
Insurance on life of person suffering from disability or severe disability or person suffering from disease.	15% of sum assured

Section 80 D of Income Tax Act 1961

Health insurance , preventive health checkup or contribution to central government health scheme paid in the name of taxpayer his/her spouse or dependent children is allowed as deduction under section 80D of Income Tax Act 1961 subject to limit of Rs 25000

In case persons specified above is a senior citizen (i.e. 60 years or more) than deduction amount is Rs. 30,000.

For super senior citizens (i.e. more than 80 years old) who are unable to get health insurance, medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D.

Additional deduction under section 80D for health insurance or preventive health checkup paid for parent’s maximum deduction Rs 25,000. In case any of the parents covered is a senior citizen, deduction amount is enhanced to Rs. 30,000. This is over and above the health insurance, preventive health checkup paid for self, spouse and children.

HUF get deduction under section 80D of Income Tax Act 1961if health insurance, preventive health checkup or contribution to central government health scheme is paid in the name of any member of HUF. If it is paid for any member being senior citizen than amount of Rs 30000 is available.

All the payments should be made through mode other than cash except aggregate of Rs 5000 for preventive health checkup to claim deduction under section 80D of Income Tax Act 1961.

Note:

Amount of Rs 30000 has been increased to Rs 50000 from AY 2019-2020 for senior citizen and super senior citizen

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