Deduction u/s 80D Mediclaim (Medical Insurance Premia)

Deduction in respect of Medical Insurance Premia [Sec. 80D]

Deduction is allowed for any medical insurance premium under an approved scheme of General Insurance. corporation of India, (popularly known as MEDICLAIM) or of any other insurance company, paid by any mode except cash, out of assessee's taxable income during the previous year, in respect of the following:

Feature

This is an additional deduction after deduction u/s 80C because overall limit on deductions u/s 80C, 80CCC and 80CCD is Rs. 1,00,000. (Sec.80CCE). See below example.

For Whom Deduction u/s 80D is available

(a) In case of an individual- Insurance on the health of the assessee, or wife or husband, or [dependent] parents or dependent children.

(b) In case of an H.U.F.- Insurance on the health of any member of the family.

Amount of Deduction

For A.Y. 2008-09: Maximum Rs.15,000 (Rs.20,000 in case any person insured is a senior citizen).

For A.Y. 2009-10:(1) In case of an individual assessee :

An additional deduction upto Rs. 15000 (Rs. 20,000 in case of the person insured is senior citizen) shall be allowable in respect of medical insurance premium for parent(s) whether or not dependent on the assessee.

Example of Mediclaim deduction

If 'A' has paid medical insurance premium (mediclaim) u/s 80D as follows

Deduction u/s 80C for PPF, NSC/LIC	1,20,000/-
Medical Insurance Premium
-For self, wife and dependent children	18,000/-
-For parents (both Senior Citizens)	22,000/-
Total Sum paid by 'A'	1,60,000/-
Solution: Allowable Deductions
Deduction u/s 80C for PPF, NSC/LIC	1,00,000/-
Medical Insurance Premium
-For self, wife and dependent children	15,000/-
-For parents (both Senior Citizens)	20,000/-
Total Allowable Deduction	1,35,000/-

2) In Case of an H.U.F, the maximum deduction is Rs. 15000 (Rs.20,000 in case any person insured is a senior citizen.)

Mode of Payment (Mediclaim)

Medical insurance premia may be paid by any mode (including by credit card, internet banking) except cash.