The person who paid medical insurance premium himself or spouse or parents or depended children can claim the deduction from total income of the person as per the instructions given below. We will discuss here the complete detail about deduction under section 80D for the A.Y. 2016-17 and A.Y. 2015-16.

Free Download Income Tax Calculator for West Bengal State Employees for the Financial Year 2016-17 & Assessment Year 2017-18 as per the Budget 2016-17

Who can claim deduction 80D?

Individual and HUF assesee can claim the deduction under section 80D for any medical insurance premium known as MEDICLAIM.
Note: The deduction is allowed only under an approved scheme of General Insurance Corporation of India or any contribution made to Central Government Health Scheme or any similar notified scheme.

Maximum deduction allowed u/s 80D

Check how much deduction of medical insurance premium, you can claim for self and your parent.

F.Y.2015-16/A.Y.2016-17  

Case I – You are below 60 Years – Rs.25,000 and Your parents are also below 60 years – Rs. 25,000 then aggregate Rs. 50,000.
Case II – You are below 60 Years – Rs.25,000 But Your parents are above 60 years – Rs. 30,000 then aggregate Rs. 55,000.

Important Points Related to Deduction under section 80D

  • You must note here that the deduction is allowed only if the payment is made from your own income during the pervious year.
  • Any premium for health insurance or Central Govt Health Schemes (CGHS) shall be made by any mode except cash. However, cash payment shall be accepted if paid during preventive health check-up.
  • Payment made via credit card/internet banking shall also be eligible for deduction.
  • The main and important point of Deduction for Medical Insurance Premium (MEDICLAIM) under section 80D is that, it does not included in deduction under section 80C (Rs.1,50,000 in total). In simple words, you can get deduction under section 80D extra over section 80C.
  • Now, it is immaterial that parents are dependent on you or not. You can claim tax deduction for medical insurance premium paid for your parents whether they are dependent on you or not.  The condition of dependency of parents is eliminated w.e.f. A.Y. 2009-10.

Tax Planning by MEDICLAIM (Medical Insurance Premium) Under Section 80D

  • So it is good strategy to pay your medical insurance premium yearly for you, wife/husband, children and parents.
  • You can get tax deduction of up to Rs.65000 under section 80D including preventive health check of Rs.5000 (self + family)
  • The other thing you must note that medical insurance premium paid for parents having more benefits. It is immaterial that parents are depended or not.