Deduction in respect of health insurance premia paid, etc. (Section 80D)
Section 80D provides for deduction available for health insurance premia paid, etc. which is calculated as under:
| Sl No |
Persons for whom payment made |
Nature of payment | Mode of payment |
Allowable Deduction (in Rs) |
| 1 | Employee or his family |
™the whole of the amount paid to effect or to keep in force an insurance on the health of the employee or his family or™ any contribution made to the CGHS or such other scheme as may be notified by Central Government (Finance Act 2013)™ any payment on account of preventive health check-up of the employee or family, [restricted to Rs 5000/-; cash payment allowed here] | any mode other than cash |
Aggregate allowable is Rs 25,000/ {For Senior Citizens it is Rs 30000/-( w.e.f A.Y 2019-20 the amount has been increased to Rs 50,000 }. |
| 2 | Parent or Parents of employee |
™the whole of the amount paid to effect or keep in force an insurance on the health of the parent or parents of the employee or™ any payment made on account of preventive health check-up of the parent or parents of the employee [restricted to Rs 5000/-; cash payment allowed here] | any mode other than cash |
Aggregate allowable is Rs 25,000/ {For Senior Citizens it is Rs 30000/-( w.e.f A.Y 2019-20 the amount has been increased to Rs 50,000 }. |
Here
i) “family” means the spouse and dependent children of the employee.
ii) Senior citizen” means an individual resident in India who is of the age of sixty years [For AY 2013-14 onwards] or more at any time during the relevant previous year.
Medical insurance referred to above 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 (Nationalization) Act, 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.
(Republished with amendments on 29.06.2018)
