All about deduction towards Mediclaim payment u/s 80D

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All about deduction towards Mediclaim payment u/s 80D

There is a deduction over and above deduction limit of Rs. 1.50 Lakh u/s 80C. It is u/s 80D for mediclaim payment.  Deduction is available towards following payment

  1. Medical insurance premium (including preventive health check-up); and
  2. Medical expenditure.

Deduction can be claimed by

  1. An Individual; and
  2. Hindu Undivided Family (HUF).

For Individual:

Following deductions are available to an individual –

  1. Amount paid towards medical insurance premium or amount paid for preventive health check-up of the Taxpayers or his family(here family means spouse and dependent children) up to a maximum amount of RS.  25,000.

It should be noted here that in case of prevent health check-up maximum amount of RS.  5,000 is allowed as a deduction, however, the same is included in the overall maximum deduction of RS.  25,000.

  1. Amount paid towards medical insurance premium or amount paid for preventive health check-up of parents of the Taxpayers up to a maximum amount of RS.  25,000.

It should be noted here that in case of prevent health check-up maximum amount of RS.  5,000 is allowed as a deduction, however, the same is included in the overall maximum deduction of RS.  25,000.

  1. Amount paid towards medical expenditure for self or any member of the familyof the Taxpayers up to a maximum amount of RS.  50,000.
  2. Amount paid towards medical expenditure for parents of the Taxpayers up to a maximum amount of RS.  50,000.

Providing the above provisions in tabular format for better understanding –

Persons covered Type of payment Maximum deductible amount
Taxpayers or spouse or dependent children Medical insurance premium + Preventive Health Check-up Rs. 25,000
Parents of the Taxpayers Medical insurance premium + Preventive Health Check-up Rs.  25,000
Taxpayers or spouse or dependent children Medical expenditure Rs.  50,000
Parents of the Taxpayers Medical expenditure Rs.  50,000

FOR HUF:

Following deduction is available to a Hindu Undivided Family (HUF) –

  1. Amount paid towards medical insurance premium of any member of the Hindu Undivided Family up to a maximum amount of RS.  25,000.
  2. Amount paid towards the medical expenditure of any member of the Hindu Undivided Family up to a maximum amount of RS.  50,000.

FOR INDIVIDUAL BEING A SENIOR CITIZENS:

[individual resident in India who is of the age of 60 years or more at any time during the relevant previous year].

The treatment of available deduction under section 80D is different in case of a senior citizen. The treatment of deduction in case of a senior citizen is explained in the below-mentioned table –

Category of Taxpayers Senior citizen Type of payment Maximum deductible amount
Individual Either Taxpayers or his family or both is a senior citizen Medical insurance premium + Preventive Health Check-up RS.  50,000
Individual Either of the parents of the Taxpayers is a senior citizen Medical insurance premium + Preventive Health Check-up RS.  50,000
Hindu Undivided Family Any member of the Hindu undivided family is a senior citizen Medical insurance premium RS.  50,000

MEDICLAIM PAYMENT IF MADE IN LUMPSUM:

In order to give corrective deduction in case of the insurance premium which is paid on the lump-sum basis, sub-section (4A) has been inserted to section 80D. It should be noted that the newly inserted sub-section (4A) to section 80D is effective from 1st April 2019.

According to said sub-section, in case of a lump-sum payment of insurance premium, in a previous year to effect or to keep in force an insurance on the health of a specified person for more than a year, the deduction shall be allowed equal to the appropriate fraction of the amount for each of the relevant previous year.

NOTE THAT ONLY PAYMENT IMADE IN CHEQUE IS ELIGIBLE FOR MEDICLAIM POLICY. FOR REVENTITVE HEALTH CHECK UP, EVE3N CASH PAYMENT IS ALLOWED

1 COMMENT

  1. Dear Admin,

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