1. Applicability – Individual and HUF including Non Resident Individuals (“NRI“)

2. Definitions:

-Family – means Spouse and Dependent Children

-Senior Citizen – means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year;

3. Investment or Expenditure covered under this deduction:

  • Health Insurance Policy or Central Government Heath Scheme
  • Preventive Health Check-up (“PHC“)
  • Medical Expenditure – Only for Senior Citizen and where health insurance is not taken.

INDIVIDUAL

1. Deduction is available for two category:

  • Assessee and Family
  • Parents

2. Maximum amount of deduction under this section for both category is INR 1 lakh

3. Maximum amount of deduction for each category is INR 50,000

4. Mode of Payment – Payment shall be made in any mode other than Cash (For PHC, cash payment is allowed)

5. The deduction for Health Insurance including PHC is INR 25,000 for each category. This would be increased to INR 50,000 in each category in case of Senior Citizen.

6. The deduction for PHC cannot exceed INR 5,000 in aggregate.

7. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen in each category subject to upper limit in point 2 and 3.

HINDU UNDIVIDED FAMILY

1. Maximum amount of deduction is INR 50,000.

2. The deduction for Health Insurance  is INR 25,000 for any member of HUF. This would be increased to INR 50,000 in case such member is Senior Citizen.

3. No Deduction for PHC for HUF

4. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen subject upper limit in point 1.

5. Mode of Payment – Payment shall be made in any mode other than Cash.

6. In case a lumpsum amount (single premium) is paid for Health insurance, covering more than a year, deduction shall be provided proportionately over the years for which the benefit of health insurance is available for both Individual and HUF.

Author Bio

More Under Income Tax

2 Comments

  1. Tarique Khichi says:

    Hi Mr. Mohan

    1. Section 80D does not specifically calls out the nature of expenditure covered for deduction.
    2. However, as per my opinion, doctor’s consultation and medicine are covered under medical expenditure for Senior Citizen who has not taken any health insurance policy.
    3. The payment should have been by any mode other than cash to claim such expenditure.

    CA Tarique khichi
    [email protected]

  2. GANDHI MOHAN BHARATI says:

    Does medical expenditure for Senior Citizens without Medical Insurance cover Doctor’s Consultation Fee & Medicines? I am a pensioner from Tamilnadu Government sand they deduct Rs.350/- a month as Pensioners’ Health Fund with restricted medical facilities. A reply will be highly appreciated My email is [email protected].

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2021
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930