Deduction under section 80 D
Income Tax Act provides for tax benefits on the investments of assessing under Section 80 C and 80 D of the Income Tax Act. After claiming the deduction on the policies and investments under section 80C, next comes the turn to subscribe for the Mediclaim policy and get claims as a deduction under section 80D from the Gross total income of the assessee. Mediclaim policy acts as a home-banker during your medical emergency, as the amount invested by self becomes a boon during a medical crisis. So considering the dual benefit of Tax Saving and support at times of emergency situations it is advisable that one should opt for a Mediclaim policy and get the benefits of premium payments and medical emergencies.
Mediclaim Policy benefit under Section80D of Income Tax Act – Eligibility Conditions:
- This is only applicable to Individual assesses (may be resident/ non-resident or Indian citizen/ foreign citizen) or on Hindu Undivided Family (HUF).
- The mode of payment of premium:
a. Other than cash; and
b. only preventive health checkup costs can be made in cash.
- The policy can be taken for self i.e., the assessee, spouse of assessed, dependent children or parents of assesse in case of Individual and in case of HUF, the Members of such HUF.
- To claim a deduction with regard to single premium health insurance policies, the amount can be claimed by dividing the lump sum premium paid by the number of years of the policy.
The contribution towards the Mediclaim policy can be made in the following schemes:
- Central Health Government Schemes
- Preventive Health Check Up Schemes
- The government notified Health Schemes
Amount Allowed as Deduction
- Up to the age of 60 years in case of individual assessee Rs. 25000 for assesse, spouse, dependent children of assesse and for parents of assessed additional deduction of Rs. 25,000 are allowed.
- Above 60 years of age in case of the individual assessee, Rs. 50,000 for send family and for parent’s additional deduction Rs. 50,000are allowed.
- For parents (Super senior citizen) above 80 years of age and a not insured individual can claim deduction on premium payment or medical expenditure incurred up to Rs50,000 by the individual who pays for their dependent senior parents.
- For preventive health checkup expense limit as per sub-section (2A) is Rs.5000 in aggregate for individual, spouse, children and parents which is in addition to above limit
- In the case of HUF, For the individual, spouse and dependent children are Rs. 25000 and for parents is Rs. 25,000 who are below the age of 60 years and for the limit above case limit is Rs. 50000 for each category
To conclude this article, to safeguard oneself, the Mediclaim policy expense indirectly gives the deduction for any medical expenses incurred during a year covering the whole family. Mediclaim agencies have tied up with many hospitals to provide Cashless treatment for patients, with no sudden cash arrangements to be done once covered under a Mediclaim policy.