Medical Insurance Premium
Medical Insurance Premium paid for self, spouse, Children and dependents parents is allowed as exemption. This exemption is available under section 80D of Income Tax Act.
Health insurance, popularly known as Mediclaim Policies, provides a deduction of upto Rs. 35,000.00 ( valid till financial year 2014-2015, Assessment Year 2015-2016, )
1) – Rs. 15,000.00 for premium payments towards policies on self, spouse and children.
2 (a) Rs. 15,000.00 for premium payment towards non-Senior citizen dependent parents or
2 (b) Rs. 20,000.00 for premium payment towards Senior citizen dependent.
This deduction is in addition to Rs. 1,50,000 savings under IT deductions section 80C.
From Financial year 2015-2016 (Assessment year 2016-2017) Budget 2015 has increased Limit of medical insurance limit –
- Deduction under section 80D is raised from Rs 15,000 to Rs 25,000 for Non-Senior citizen category.
- The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000.
- For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D.
- However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30,000.
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For consideration under a Senior citizen category, the person’s age should be 65 years during any part of the current fiscal, eg. for the fiscal year 2010-11, the person should already be 65 as on March 31, 2011),
Please note that Budget 2012 as changed the definition of senior citizen. Any person would be considered as senior citizen if he is 60 years old during the current financial year 2012-2013.
This deduction is also applicable to the payments made by either cheque or credit cards. So if payment is made by cash, this deduction would not be allowed.
Please note that Queries addressed below are relevant till financial year 2014-2015 only. Budget 2015 changes impact is not taken, while answering these queries.
Queries on Medical Insurance Premium
1. Can you please tell me the maximum amt of deduction u/s 80D for Individual – and for Family – Rohit Khurana , Noida
As per section 80D, you get benefit under Mediclaim policies
1. one for you and your family – Rs 15000
2. for your parents = Rs 15000
if person covered in 1 and 2 is 60 year old or more ( ie they are senior citizen) then 5000 additional deduction is available.
2. During the year i have paid one medical policy in cash and another by cheque. Would I get income tax benefot for the policy? Isha Ghai , Delhi
You will get Income tax deduction for policy for which you have paid by cheque.
3. In our organisation, a Senior person (62 years) is working. He have paid the mediclaim policy for Rs 25000 Lum Sum amount. In section 80D what will be the deduction limit in his case? Renu Mishra
Medical deduction u/s section 80D to senior citizen (above 60 years) would be available upto Rs 20,000/-.
In Budget 2012 , changes have been made. All Tax Individuals who are more than 60 years old during the financial year 2012-2013, would be considered as senior citizen.
4. Can salaried persons take the benefit of medical allowance & medicalim policy (U/sec 80D) in same time?
Shruti Bajaj, Indore
Yes, all salaried employee can claim both the benefits. Medical Allowance is allowed u/s sec 10 and Mediclaim allowance u/s 80D.
Hi, If proposer for the mediclaim policy is not the employee, his/her name is not reflecting in policy document anywhere then will he be able to claim this benefit?
In Group Mediclaim policy, employees names are not mentioned in policy. But you are eligible for medical cover under medical policy.
I have taken a mediclaim policy for my mother a senior citizen. But the proposer is my wife and my name is nowhere reflecting in the policy. Can I avail benefit under sec. 80D. My employer is refusing to accept this .
I want to take my mother 80d benefits I pay premium for mediclaim
can i take 80d benefits
Yes you can take bnefit for premium paid for your mother
Can my wife take the benefit of IT exemption under 80 D for my father?
Mediclaim due on 02/04/2013 and payment made on 31/03/2013 .can i take the benefit of section 80D for the F.Y 2013-14?which is not claimed in 2012-13
I am a senior citizen (78 yrs old)
my income is around rs 3,00,000 from pension , how much medical exemption is applicable for the current financial year 2013-14
78 years old pensioner, total income of Rs 3,00,000/- how much medical relief is applicable please advice
I have taken a medical policy for my wife in FY2012-13 and paid the premuim of Rs 48000/- i have taken a tax exemption under section 80D of Rs 15000/-, further my question is can i take a tax exemption for this year also FY(2013-14) as per the same premuim.
yes you can claim medical premium benefit for wife premium
I have taken a medical insurance for my grandmom who is 76 years old.
I am the proposer of this policy and have paid 29,543 towards this insurance policy.
Kindly let me know if I will be eligible for tax deduction.
Dear Sir
I have take Medical Policy for my wife & policy on name of my wife only but premium paid by me within my taxable income so can i take benefit of 80D
Hi,
I am a salaried person and I want to take a mediclaim policy for my parents and payment to be made from my bank account thru cheque so can I take benefit of income tax u/c 80D but my father is also filing ITR.
You can claim benefit of mediclam for premium paid for your father
I have a group insurance policy through my employer and it includes my parents also. the premium paid is Rs. 24000/- . How much I can claim under 80D
Is it being shown in your form 16, if yes hen you can claim this amount under section 80D.
My organisation have a floater plan in which my spouse is covered. Can my husband take the tax rebate under section 80D instead of me?
Benefit under section 80D for Medical Benefit, can be taken only by person who has made the payment.
Hi,
My employer provides me with medical allowance of Rs 15000 p.a. And I pay Rs 5500 p.a. towards premium for my health insurance (family floater). Can I get IT rebate on the entire Rs 20500 (15000+5500)?
Thanks
Amitava
You will be eligible for both benefit.
I got 2 health policies under family floater plan. First is LIC health plan with premium of 20000/- and I take its benifit in my tax return. Other is Tata AIG cashless health policy with premium of 14200/- and it’s also in my name as proposer and I pay premium for both from my account. Since I take benifit under 80 D from LIC health policy, can my wife take benifit under 80D from Tata AIG premium although it’s paid from my account ?
80 D benefit can be taken only by the person who has made the payment for medical insurance.
IT rebates can be claimed only by the person who submits his IT returns for the premium paid by him. As the receipt issued by the insurers do not mention the name of the remitter, this doubt comes in. If the premiuis are paid by cash for the childrens policy, there is every room for the father and mother can claim rebate in their individual retrurns which is not in order, to say it politely. To avoid this the insurer should collect the premiums with a challan and the certificate should be issued only to the particular remitter, provided he has an Insurable interest in the insurance
One can submit returns for his/her income only and claim rebates if any.
hi
can i take benefit 14% service tax on health insurance in total amount
The individual
Limits of Rs25,000 for family and 20000 for parents can be under the same group medical policy or there must be two separate medical policies???
There is no restriction from Income tax point of view. However, premium will less if you take separate policy.