Deduction u/s 80D is available to the following:
1.An Individual;
2.A hindu undivided family(HUF)
Deduction u/s 80D is available to an individual for his own health , spouse and
dependent children. An individual can also claim deduction u/s 80D for
his parents(whether dependent or not).
deduction in respect of parents health of an individual is in addition to the
above deduction.
PERMISSIBLE DEDUCTION U/S80D:
1. Amount paid for medical insurance or Rs. 15,000/- for his own health or his
family(spouse & dependent children)
2.Amount paid for the health of his parents whether dependent or not OR Rs. 15,000(Maximum).
but if the parents are senior citizens, the above amount of
deduction increased to Rs. 20,000(maximum).
therefore , an individual can get maximum deduction u/s 80D either Rs.
30,000(Rs.15,000 for himself & family & Rs. 15,000 for
parents) OR Rs. 35,000( if the parents are senior
citizens)
Example:
An individual assessee pays (through any mode other
than cash) for Medical insurance premium during the previous year out of his taxable
income as under:
a) Rs. 12,000 on his own health & on the health
of his wife & dependent children.
b) Rs. 17,000 on the health of his
parents.
total amount paid by the individual is Rs. 29,000.
but he will get deduction only for Rs. 27,000 (Rs. 12,000 for himself &
family & Rs. 15,000 for his parents).
But if the parents are senior citizens he will get
benefit of Rs. 29,000 because in case of senior citizen deduction is allowed
upto Rs. 20,000.
NOTE:
1.deduction in respect of dependent children in case
of male is upto the age of 25 years is allowed & in case of female child
upto her marriage.
2. dependent children includes legitimate of legally adopted childrens.
CONDITIONS TO AVAIL THE DEDUCTION U/S 80D:
1.Payment shall be made by any mode of payment other than cash.
If the payment for the policy is made in cash than deduction under this section
is not allowed.
2.Payment shall be made out of income chargeable to Tax.
3. payment shall be as per GIC scheme
approved by the central government or any other insurer as approved by IRDA.
