Deduction U/s 80D

As we all know there are many deductions where an Individual and HUF can avail Tax Deduction from his Total Taxable Income.This sec 80D is availed when an Individual or HUF makes  payment towards Medical Insurance Premium. In other words Investments made towards payment of health insurance premiums, qualify for a tax deduction under section 80D.

Applicability

Individual

HUF

In Case of

INDIVIDUAL

On the Health of the Assesse or health of wife or Husband, or on Dependent Parents or dependent children of Assesse.

HUF

On the health of any member of the family.

The Deduction that can be claimed at the time of filing of Income Tax Returns U/s 80D is as follows

• An Assesse can claim up to 15000 where the premium has paid for himself , spouse and dependent Child
• If in case the insured is Senior citizen then the Deduction Allowed will be up to 20000.
• If in case the Assesse has paid the Premium for His/Her Parents (who are dependent or not) the deduction allowed will be 15000, and if the parents of the Assesse are Senior citizens then the deduction allowed will be of 20000.

To Make you more clear we have provided a detailed description below on where the Assesse can avail deduction and what amount can be deducted

Situation	Medical  Insurance Premium  Paid In Respect of		Total Deductable Amount U/s 80D
	Assesse , Spouse and Dependent Children	Parents of Assesse (Dependent or not)
Assesse,  his Family and His Parents are < 60Years of age	15000	15000	30000
Assesse and his Family  <60 years and Parents of Assesse > 60 years	15000	20000	35000
Assesse  and his Parents both Attained > 60 years of Age	20000	20000	40000

Points To be Kept In Mind

• The premium may be paid by any mode of payment, other than cash.
• Premiums should not be from gifts received by you.
• The health insurance premium that you pay must be from the taxable income applicable for the year you claim. 
• Part payment of premium is allowed. 

1. For example, suppose your parents contribute 50% of their health insurance premium and you pay the balance 50% of their premium. In such a case, you could avail the deduction for the amount contributed by you and your parents too could avail deduction for their contribution.
2. Suppose If an Assesse Paid Medical Insurance Premium on the health of Parent  Rs 30000 and on himself 15000 then in the premium of  parent the son has contributed 16000 and balance 14000 by one of  his parents . The son will get deduction U/s 80D Rs (16000 + 15000 made on himself) 31000. Father gets deduction up to 14000 U/s 80D.