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)

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