What is deduction under section 80d towards medical insurance premium?
- Health insurance premium paid for self, spouse, and dependent children
- Health insurance premium paid for parents
- Preventive health check-up expenses.
The maximum deduction that can be claimed under section 80D depends on the age of the insured person and their relationship with the taxpayer. For individuals and HUFs, the deduction limits are as follows:
1. For self, spouse, and dependent children:
- Up to Rs. 25,000 for individuals below 60 years of age
- Up to Rs. 50,000 for individuals aged 60 years or above
2. For parents:
- Up to Rs. 25,000 for parents who are below 60 years of age
- Up to Rs. 50,000 for parents who are aged 60 years or above
3. For preventive health check-up:
- Up to Rs. 5000 per financial year
In order to claim the deduction under section 80D, the taxpayer must meet the following conditions:
1. The health insurance policy must be issued by an insurance company approved by the Insurance Regulatory and Development Authority of India (IRDAI)
2. The premium amount must be paid during the relevant financial year
3. The taxpayer must have receipts or other documentary proof of the premium payment
It's important to note that the deduction under section 80D is available only for the amount paid towards health insurance premiums and not for any other medical expenses. Moreover, the deduction is not available for medical insurance premiums paid towards employees covered by a group health insurance scheme.