How to claim deduction in case of payment of premium for Medical Insurance /Mediclaim Policy ?

Answer: Deduction in respect of Medical Insurance Premium Section 80D

1. Deduction shall be allowed only to an individual or HUF.

2. Deduction shall be allowed if the assessee has made payment towards

(i) Medical Insurance or

(ii) Central Government Health Scheme or

(iii) Such other scheme as may be notified by the Central Government in this behalf

(iii) Preventive Health Check-up

3. Individual can make payment for wife or husband or dependent children and deduction shall be allowed equal to the amount paid but subject to a maximum of Rs.25,000 but in case of senior citizen deduction shall be allowed upto Rs.50,000.

If the individual has taken policy in the name of parents (dependent or independent), additional deduction shall be allowed to the extent of the premium paid but maximum Rs.25,000, however, if the policy has been taken in the name of senior citizen, deduction shall be allowed to the extent of Rs.50,000.

Deduction for Preventive Health Check-up shall be maximum Rs.5,000 in aggregate for self, spouse, dependant children, and parents.

HUF can take the policy in the name of any of its members and deduction shall be allowed in a similar manner.

Payment should be made otherwise than in cash but payment for preventive health check-up can be made in any manner.

**In case of a senior citizen, in general medi-claim policy is not issued hence expenditure can be incurred on their medical treatment and deduction for such expenditure shall also be allowed but limit shall be the same as given above.

e.g. (i) Mr. Pradeep has taken medical claim policy in his name and paid premium Rs.27,000 by cheque, in this case, deduction allowed shall be Rs.25,000 but if Mr.Pradeep is a senior citizen, deduction allowed shall be Rs.27,000

(ii) Mr. Inder has paid Rs.7,000 for self for preventive health checkup and Rs.7,000 for preventive health checkup of his father, in this case, deduction allowed shall be Rs.5,000

(iii) Mr. Pradeep paid premium of medical claim policy by cheque for self, spouse and children Rs.22,000 and for parents Rs.28,000, in this case, deduction allowed shall be Rs.47,000

(iv) Mr. Sunil paid premium of medical claim policy Rs.15,000 in cash, deduction allowed shall be Nil

(v) Mr. Inder paid premium of medical claim policy by cheque `18,000 in the name of his father who is not dependant on Mr. Inder, deduction allowed shall be `18,000