Deduction U/s 80D for Mediclaim Premium to Individual, HUF and Senior Citizens
- Saturday, February 4, 2012, 9:15
- Income Tax
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Deduction in respect of Medical Insurance Premium (Mediclaim) paid to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or HUF on the health of any members of the family. A Mediclaim policy is a must because should you fall sick or meet with an accident, your medical bills could wipe out your savings.
Features of Mediclaim policy
1. Premium based on Age: - As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.
2. Who is it available to?
- Individual (resident or non resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse, parents or dependent children* of the taxpayer.
- HUF(Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.
Note
- Dependent Children (i.e. legitimate or legally adopted children). Children above 18 years, if employed, can not be covered. Male children, if not employed, but a bonafide student can be covered upto age of 25 years. Female children, if not employed, can be covered until the time she is married.
- parents need bot be dependent on the Assessee.
- parents of Individual or Spouse both are covered.
3. Entry Age: This insurance is available to a person between the age of 18 to 59 years. However, the Policy can be renewed upto the age of 80 years.
a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.
b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the age of 80 years the policy can be renewed beyond the age of 80 upto the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.
c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage. Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.
4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs. The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.
5. Payment of Mediclaim Premium out of taxable Income:- The amount must have been paid using the taxpayer’s income chargeable to tax.
6. In addition to deduction u/s, 80C, 80CC and 80CCD,:- This is an additional deduction available which do not include deduction u/s 80C, 80CCC and 80CCD for which overall limit is is Rs. 1,00,000.
7. Partly contribution: If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash.
8. Mode of payment: The premium may be paid by any mode of payment other than cash. Note prior to 1st April 2009, premium payment was required to be done only by cheque. Credit card or other online payment mechanism where not allowed. Now all payment modes except cash payment are accepted.
9. Which Mediclaim Premium is allowed? : - Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory & Development Authority (IRDA).
10. Proposer of the policy is not must: The premium is to be paid to effect or keep in force insurance policy ,there is no condition that assessee should be the proposer of the policy ,
11. Part contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
12. What is the amount of the deduction?
For Individual
- Basic deduction: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year up to F.Y. 2010-11 and 60 years from F.Y. 2011-12) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.
- Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.
For HUF
- Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.
EXAMPLE- 1
1. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premia, out of his taxable income, as under:
(i) Rs 12,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children;
(ii) Rs 17,000/- to keep in force an insurance policy on the health of his parents.
Under the new provisions he will be allowed a deduction of Rs 27,000/- (Rs. 12,000/- + Rs. 15,000/-) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs 29,000/- (Rs.12,000/- + Rs.17,000/). Whether the parents are dependent or not, is not a consideration for deciding the deduction under the new provisions.
Further, in the above example, if cost of insurance on the health of the parents is Rs 30,000/-, out of which Rs 17,000/- is paid (by any non-cash mode) by the son and Rs 13,000/- by the father ( who is a senior citizen), out of their respective taxable income, the son will get a deduction of Rs 17,000/- ( in addition to the deduction of Rs 12,000/- for the medical insurance on self and family) and the father will get adeduction of Rs 13,000/-.
EXAMPLE 2
An individual assessee pays through credit card during the previous year health insurance premium as under:
- Rs. 12,000 to keep in force an insurance policy on his health and on the health of his wife and children
- Rs. 17,000 to keep in force an insurance policy on the health of his parents.
Under the proposed new provisions, he will be allowed a deduction of Rs. 27,000 (Rs. 12,000 + Rs. 15,000) if neither of his parents is a senior citizen. However, if any of his parents is a senior citizen, he will be allowed a deduction of Rs. 29,000 (Rs. 12,000 + Rs. 17,000). Whether the parents are dependent or not, is not a consideration for deciding the deduction under Section 80D.
EXAMPLE- 3
Question:- In the last budget, the finance minister announced exemptions for Mediclaim charges paid for senior citizens. However, I am not sure if it has yet been notified and effective. I need to take medical insurance for both my parents, who are senior citizens. I would appreciate if you can let me know.
Answer:- Earlier Sec 80D deduction in respect of medical insurance premium was Rs 15,000 for an individual and Rs 20,000 for a senior citizen. However, from this year, if someone were to buy medical insurance for his parent/s, an additional deduction of Rs 15,000 (over and above Rs 15,000) will be available. If such parent/s were senior citizen, the additional deduction would be Rs 20,000. So a person insuring himself, his spouse, children and parents could potentially get a deduction of Rs 35,000. This provision is effective from 1.4.08.
EXAMPLE- 4
Can I pay mediclaim on behalf of my mother-in-law and claim deduction under Section 80D of the Income Tax Act?
An individual is allowed to claim deduction under Section 80D when the policy is taken on the health of the assessee, his spouse, parents (dependent or not) and dependent children. Accordingly, you cannot claim the deduction under Section 80D in respect of mediclaim paid for your mother-in-law.
Appendix: Section 80D of the Income Tax Act
Deduction in respect of medical insurance premium.
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees.
Explanation.For the purposes of clause (a), family means the spouse and dependant children of the assessee.
(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate fifteen thousand rupees.
(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or in sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, the provisions of this section shall have effect as if for the words fifteen thousand rupees, the words twenty thousand rupees had been substituted.
Explanation.For the purposes of this sub-section, senior citizen means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.
(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by
(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]
FAQ on Mediclaim-
1.Why is deduction u/s 80D allowed?
The deduction is allowed for
1. buying medical insurance , popularly known as Mediclaim policy.
2. Keeping in effect a medical insurance already bought.
2. How much deduction available?
1. If Mediclaim is bought for any person other than person having 65 years , then Rs 15,000.
2. If Mediclaim is for person having 65 years or more , Rs 20,000.
3. Who can claim deduction?
Individual and HUF making payments for medical insurance.
1. Individual can claim for self, wife, children and parents.
2. HUf can claim for Mediclaim policy on members.
4. What should be mode of payment of insurance premium?
Any mode other than cash will make one eligible for deduction u/s 80D.
5. If office deducts salary for medical insurance for employee and his family , whether the employee can claim deduction u/s 80D?
Yes, for the fact that
the mode of payment is any ,other than cash, and
It is employee who paid for himself or his family’s insurance.Get a certificate from the employer regarding deduction of amount for medical insurance purpose.You can claim to the extent the dedcution has been made by the employer for medical insurance subject to maximum RS 15,000
6.If an individual buys Mediclaim for himself and for his parents exceeding 65 years, how much can he claim as deduction?
Good question. Subsection 2 of section provides as under
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees.It is clear that an individual can claim deduction up to Rs 35,000 for medicalim insurance , if he makes insurance for his family and any parents exceeding 65 years.
7. Can somebody having invested the amount from income exempt from tax or by taking loan , claim deduction u/s 80 D?
No as per opening line in the section 80D , the payment should be only out of income chargeable to tax . Read the opening line :
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
8. Can you get deduction u/s 80D for Overseas Mediclaim policy?
Yes, in author opinion , there in nothing in the provision u/s 80D which prohibits claim of deduction u/s 80D for medical insurance for overseas journey. The only requirement, as given in section 80D(5) is that the insurance companies issuing such overseas insurance should be one of these
(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by
(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).
(Article was First Published on this Website on 06.09.2009 and Republished on 05.10.2011 and further on 04.02.2011 with Amendments in the Article)
I have a MEDICLAIM policy for myself, my wife and children since the last twenty three years. Recently, I spent a certain amount for the treatment of my wife and plan to get it reimbursed from Mediclaim. Cashless facility was not available between that particular hospital and the concerned TPA. Do I have to pay income tax on the money that I received as reimbursement from Mediclaim?
No. Its not taxable.
i have two mediclaim policy, one is from new india assurance, having my wife, my kid and me as insured members. and another having my parents and my self. the second policy whihc is having my parents and me is flotter policy.
now as second policy also having my name in the policy whether it will be considered for parents segment only or not?
and as it is a flooter policy it is not showing bifurcation of charges among all insured.
Second will be considered for parents, only thing is you need to deduct share of your premium if first policy premium exceeds 15000. If first policy premium not exceeding 15000 then you can claim the difference of 15000 and your share of premium in second policy as deduction too.
service tax paid on premium is allowed as deduction or not???
It is allowable
I HEARD THAT MEDICALIAM PREMIA WILL BE EXEMPTED AFTER THE FULFILL OF 1 LACS DEDUCTION UNDER SECTION 80C.
PLS GUIDE FOR ABOVE AND WHAT IS THE MAXIMUM I CAN TAKE BENIFIT UNDER THIS 80D?
Dear sir
i have medicalaim policy for Rs.30000/-for my family(myself,wife and my son)can i claim total amount under 80D and can i claim 15000 for me &another 15000 for my wife as Individual assesse
i have a policy in favour of our parents and paid premium of Rs. 15000. what amount will be deducted in our taxable income.
Dear Sir If I pay the premium of Rs.2500/- for availing Health insurance in the month of December-2009. Will I get the exemption from income tax under 80D for the whole amount of 2500/- or is it for only 3 months (Jan to Mar). Kindly advise.
You will get full amount as deduction.
Dear sir
i have medicalaim policy for Rs.30000/-for my family(myself,wife and my son)can i claim total amount under 80D and can i claim 15000 for me &another 15000 for my wife as Individual assesse
i am waiting for u r reply
dear sir,
please infrom me for service tax on road transport freight (goods for rice & wheat (agriculcher goods)
may mediclaim premium is Rs. 4350.00 and service tax is rs. 350.00 total paid prium amount is rs. 4700.00 which amount is admissable for exmption rs. 4700.00(incding service tax) or not?
may mediclaim premium is Rs. 4350.00 and service tax is rs. 350.00 total paid premium amount is rs. 4700.00 which amount is admissable for exmption rs. 4700.00(including service tax) or not?
Read more: http://www.taxguru.in/income-tax/all-about-deduction-us-80d-for-mediclaim-premium-available-to-individual-huf-and-senior-citizens.html#ixzz0gwPWwjQR
Gross amount is eligible for deduction.
i have Paid Premium Rs.30000/ for medicalaim policy to my family(myself,wife and my son)can i claim total amount under 80D and can i claim 15000 for me &another 15000 for my wife as Individual assesse
i am waiting for u r reply
Read more: http://www.taxguru.in/income-tax/all-about-deduction-us-80d-for-mediclaim-premium-available-to-individual-huf-and-senior-citizens.html#ixzz0hNdQuZ2z
Yes u can claim 15000 in ur hands & 15000 in ur wife hands.
However it is to be noted here that if your child is not dependent on you, than you will not be able to claim deduction on that amount.
If I paid an amount of Rs.10,000/- towards medical policy so whether full amount i.e. 10,000/- will be deducted from IT above Rs.1,00,000/- deduction
Yes it will be over and above one lakh deduction under section 80C.
D. sudhakar ji u can take benefit of Rs.15000 u/s 80D & your wife too if & only if Out of 30,000 Rs. 15000 is paid by ur wife(other than cash).
According to this article
www. thehindu.com/biz/2009/03/16/stories/2009031650041600.htm
service tax on premium paid for Medical Insurance is not deductible under 80D. Only the premium paid is deductible. However, you have answered in two questions above that the gross amount is deductible – please clarify?
I have a mediclaim policy on my family(me,husband & child)(premium paid is 3500/yr) & on my mom in law (premium paid is 6500/yr). whether I as a woman is entitled to receive a deduction u/s 80D for premium paid by me for my ‘mother in law’?
my company give the bonus and exgratia both to employee.some employee got both bonus and exgratia and some employee got only bonus/ ex-gratia.
can we take the exgratia as taxable part in perquisites valuation of rent free accomodation if employee got only ex-gratia. pls reply me quickly
I have a mediclaim policy which covers my parents (who r senior citizens) and for my wife and son. The premium paid is Rs.32500/- annually. How can I get the benefit of Rs.15000/- for myself and family and Rs.20000/- for my parents?
I have paid a medical insurance premium of 6700 for Parents and Self with Royal Sundaram and 15872 towards my parents Health Insurance from Oriental health. Will I get tax deduction on this premium paid
Hi,
My family is HUF . In my family there are 4 parents and 5 children.( 5 children , my brother (Studying 12th standard) , myself). If i take 2 insurance family flot. HIS ploicies(for example 15K + 20K), can i claim this amount under taxable amount.Please suggest me.
Thanks & regards
Kondareddy
can a parent(Father) already covered in a different mediclaim policy be included in a separtae policy containing spuse & kids for which ifather is only paying the premium.
If a person has paid the Mediclaim Premium by Cash for self, wife and children is there a possibility of showing the same as deduction under 80D from taxable income.
Hi,
My question is when I am considering to claim tax benefit on the medical insurance for my parents, do I need to be a proposer/insured in the same policy that I would take for them? Is it possible that I take a policy covering my parents (me not in the policy) and I pay the premium for them – can I claim tax benefit on this? How?
Thanks
very good
mediclaim up to 70 yrs of age & avail tax benefit u/s 80D.
Contact noida@starhealth.in, 0120-4514000
I have my parental medical insurance amount as INR 9000. Service tax in that is INR 3000. Can I claim the entire INR 9000 (Premium 6000 + Service tax 3000) as tax deductible?
My query is as follows : I paid Rs. 18,940 for self, spouse & two dependent children during year June 2009 (FY2009-10, AY-2010-11). This poly premium for a two year period from 24-6-2009 to 23-6-2011, as many insurance companies are now-a-days taking premium for a two year period together.
Since I have some other mediclaim policy, I did not claim this amount in my returns for the AY 2010-11 and now in this FY 2010-11, I do not have any other premium amount to be paid by me. I would like to avail the deduction applicable for the FY-2010-11 for the coming AY 2011-12. My insurance company says I can claim deduction in this year, since I have not claimed in last year. Am I eligible ? Please clarify.
I have paid Rs.20,000 as premium for my Dad’s insurance policy however, my name is not there in the policy. Can i claim tax benefit for the same ? Please answer immediately
hi, i am single and would like to take parental insurance for my parents.
query: wil i be able to claim tax benefit., i have contacted an insurance agent for a family medical policy covers father n mother for 2L, as mentioned by the agent the receipt contains My fathers name f/o my name in the proposar column., am i eligible to benifit from 80d tax, as my father s retired now.
I have taken Mediclaim Policy via New India Assurance Company Up to 1 lacks Premium company will pay & out off 1 lacks employee pay but chq will give to company
Like Lasy year 2010-2011 I insuren Policy 3 lacs out of 1 lacs premium ave 6000 company paid & balance 2 lacs premium Rs 12370 myself will pay but chq given to company for company name rs 12370 & then compant will give full payment of chq 12370+6000 = 18370 to New India assurance so my qyestion is Can I get 12370 claimed U/e 80D for Income tax purpose
i have my self & wife icici pru policy for under 80d 15000 taking exemption before 12 days taken .
can possible to take same policy for wife independently for addition 15000 exp.under 80d .wife is dependent .
sir,
I have paid mediclaim policy premium amount of Rs.10782 which includes Rs.1007/- as service tax amount in this case whether i can get deduction of Rs.10782 full paid amount or after deducting service tax amount.
Thanks
M.K.VORA
Sir,
I have paid mediclaim policy premium amount of Rs.11300 which includes Rs.1300/- as service tax amount in this case whether i can get deduction of Rs.11300 full paid amount or after deducting service tax amount.
Thanks
S.K.Jaiswal
Hi..
I have a query ,i am working for an MNC Company and they have this mediclaim policy only for self and they are saying family will be covered ,how this happens ?
As i worked in so many companies but every were they use to cover mediclaim to self,spouse,children & parents all upto together upto 5 lakh,
But my present company says “No”only self will be covered ,so pls suggest me how can i demand this policy to my company and i need to know what all government rules for employer mediclaim policy.
if individual is seneior citizen then what will be maximum deduction for individual and his parents u/s 80d
sir this is srinivas after deduction under sec 80c i will get 1,93,643 what amount will deduction on the basis of 80D
Hello,
My organization as applied for GMIP with once of India Mediclaim insurance provider. The permium amount paid for covering employee, immediate family members and parents/inlaws are split between employee and organization. Employees pays premium for parents/in-laws to be inclused for cover. My organization claims that Section 80D benefit cannot be claimed by employee for premium contribution employee is making towards parents/in-laws coverage and this benefit of Section 80D can only be availed by the organization. Kindly clarify if employee can claim deductions under Sec 80D for the contribution he/she is making for parents/in-laws coverage. This deduction appears in salary slip as parental insurance.
If Individual is a Senior Citizen, then he can claim deduction of Rs. 20000/- for himself and as he is a senior citizen, his parents are also senior citizen, so he can claim deduction of Rs. 20000/- for them. Total Deduction under section 80D would be Rs. 40000/-
No it is not taxable
if mediclaim of Rs 35000/- including parents,spouse, childrens the hole amount is not taxable or what
I m working in an organisation where my employer gives me defualt a mediclaim policy for 2 lakhs in which myself and 2 dependants(mom & dad) are included. Its premium gets deducted from my salary directly. If I want to take a medical insurance policy seperately from any insurance company for my parents will i get the tax exemption?
i have a mediclaim flooter policy which includes me and my parents.the amount is 25000.
20000 is for parents and 5000 for myself. what proof is required to claim for 15000(max possible) of my parents and 5000 of myself for tax benifit. bifurcation of premium is not provided by the insurance company
Can u pl. give guidance of savings for seeking income exemtpion apart from of Rs.1,00,000 u/s 80C under Chapter VI deductions.
TN SUBRAMANYA, BANGALORE
Respected and dear Sir ,Madam,
I am the only daughter of my parents and spent for my mother’s treatment around 30000 before one month and I request you could I claim tax rebate under 80DD, 80DDB. Please mail me and I remind you that I also have asked this question before.Please mail me as possible as you can as I have to pay tax now.
if the lumpsum payment of Rs.50000/- is made in current year towards medical insurance premium for five years.
What will be the deduction under sec.80 D for current year ?
Rs.10000/- or Rs.15000/-
regards
I have insurance policy on my husbands name including my name as a spouse. My husband is not using 80c privilage for mediclaim..Can i use this mediclaim amount for my income tax benifit.
sir, i am married female paid mediclaim for my mother-in-law b’cz after marriage definitely i am living with my spouse family n parents. is this exemped under 80D.
Sir, I bought a policy by paying 56876/- out of which the payment of Rs.37562/- is made in current FY 2011-12 towards medical insurance premium for five years. MY employer also deduct 3900/- fo it.
What will be the deduction under sec.80 D for current year ?
regards