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 are given below. We will discuss here the complete detail about deduction under section 80D for the A.Y. 2017-18 and A.Y. 2018-19.
Who can claim deduction 80D?
Individual and HUF assessee 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 similarly notified scheme.
Maximum deduction allowed u/s 80D
Check how many deductions of medical insurance premium, you can claim for self and your parent.
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Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B
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Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B
· Download Automated TDS on Salary Calculator All in One for Govt.& Non-Govt. Employees for F.Y.2017-18 & A.Y.2018-19
Tax Compute Sheet + Salary Structure + H.R.A.Calculation + Form 16 Part A&B and Part B + Arrears Relief Calculator U/s 89(1) With Form 10e
F.Y.2017-18/A.Y.2018-19
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.
II – You are below 60 Years – Rs.25,000 But Your parents are above 60 years – Rs. 30,000 then aggregate Rs. 55,000.
III – You are above 60 Years – Rs. 30,000 and Your parents are also above 60 years – Rs. 30,000 then aggregate Rs. 60,000.
Note: The maximum deduction for payment on account of preventive health check-up of self, spouse, parent(s) or depended on children, in the aggregate shall be Rs.5,000.
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 include in a 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 the 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 a 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.
Thats’ all readers, If you would like to buy any health insurance policy then please do your research or consult with your tax professional. Always compare your policy premium, features, benefits, claim etc before buying any health insurance policy. There are some health insurance policies to claim deductions under section 80D (MEDICLAIM). Please ask any query related to health insurance policy, mediclaim, deduction under section 80D through comment form give below. We’ll also suggest you some good health insurance policy if you really want to buy with tax planning.