Deduction for Medical Insurance under section 80 D in respect of contribution to Central Government’s health scheme: Budget 2010
Under the existing section 80D, deduction upto a sum of Rs. 15,000 on premium paid for insurance on the health (Mediclaim) of the assessee and his family. A further deduction of Rs. 15,000 is admissible if the medical insurance is taken for parents of the assessee. It is also provided in the existing provision that if the insured is a senior citizen, the said limit will become Rs. 20,000.
It is now provided that if any contribution is made to the Central Government’s health scheme then the same would be also eligible for the deduction U/s. 80 D, subject to the above overall limit.