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Section 80D Mediclaim Income Tax Deduction for Individual
- DetailsWritten by PolicyBazaar -
- Hits : 35981 -
Modified 13 February 2017
Health is wealth; we should not take health-related issues lightly. With so many mediclaim policies available in the market, it has become very convenient to take care of your health without spending a fortune. Hospital bills are too expensive; if you have health insurance, then you are covered against such bills (subject to the policy coverage). You don’t have to worry at all.
On the contrary, if you don’t have mediclaim insurance, then your hospital bills can take a toll on your savings. It can stir up a storm in the form of financial crisis. To avoid such circumstances, you can buy a health insurance policy that provides sufficient coverage to you.
A health insurance policy provides you with hospitalization benefit; it takes care of your hospitalization expenses. Under Section 80D of the Income Tax Act, 1961, the premium paid for mediclaim is eligible for tax deduction. Income tax deduction is the complementary benefit that you can avail when you are paying the premium of a mediclaim policy. The policy can be in the name of:
- Your spouse
- Parents who are not dependent on you
- Dependent children
What is the Amount of the Tax Deduction under Section 80D for Individual?
Basic tax deduction under Section 80D
For Insured Individual
If the mediclaim premium is paid for self, spouse or dependent children, the maximum tax deduction of Rs. 25,000 is allowed.
There is a specified criterion for the dependent children. The premium paid for insurance of male children up to 25 years of age is eligible for tax deduction, provided that he is unemployed and a bona fide student. When it comes to female children, they can be covered for as long as she is unmarried.
In addition to that, if any person mentioned above is a senior citizen (60 years plus), and mediclaim premium paid for that person, then the amount of deduction goes to Rs. 30,000.
For Uninsured Individual
If there is an uninsured super senior citizen (80 years plus) in your family, in that case, medical expenditure up to Rs. 30,000 is allowed as the deduction under section 80D.
If mediclaim premium is paid for parents, then maximum deduction of Rs. 25,000 is allowed. However, if any of the parents covered by the mediclaim policy is a senior citizen, then the deduction amount is increased to Rs. 30,000.
Keep a note in your mind that your mode of payment can be any except cash. Otherwise, you would not be eligible for the tax deduction under Section 80D.
Here is the table that you can refer to in order to know the total deduction that can be claimed under section 80D.
Medical Premium Paid For
And Maximum Tax Deduction
Total Deduction Under Section 80D
Self, Spouse and Dependent Children
Parents (Dependent or Not)
No one in the family is a senior citizen
Up to Rs. 25,000
Up to Rs. 25,000
No one in your family (you, spouse or children) is a senior citizen
But your parents (either father, mother or both) are senior citizens
Up to Rs. 25,000
Up to Rs. 30,000
One or all your family (you, spouse or children) is a senior citizen
If your parents (father, mother or both) are senior citizens
Up to Rs. 30,000
Up to Rs. 30,000
Up to Rs. 60,000
Section 80D and Medical (Preventive) Health Check-Up
Medical checkups or preventive health check-up expenses to the limit of Rs. 5000 are eligible to be claimed as tax deductions.
For instance, Mr. Shayam is 65 years old. He has paid Rs. 25,000 as the premium of his health insurance policy. Also, he has spent Rs. 6000 for the health check-up. He wants to calculate his tax deduction.
As Mr. Shayam is a senior citizen, under Section 80D, he is eligible to claim Rs. 30,000 as a tax deduction of his medical insurance premium. Though he spent Rs. 31,000 (Rs. 25,000 + Rs. 6,000) as the expenses, he can only claim the tax deduction to the limit of Rs. 30,000 only.
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