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Avoid Mistake To Claim Deduction Under Section 80D Against Your Health Insurance Premium

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Section 80D of income tax act 1961, offers deduction to individuals and Hindu undivided family on investment made towards health insurance premium or for investing under central government health scheme (CGHS) for self, spouse, children, parents and dependent persons.

The only thing which can take away this deduction benefit is the payment mode, as payment made for health insurance premium by way of cash is not permissible to claim deduction under section 80D of income tax act. Payment made by cheque, demand draft or any other payment mode except cash can make you claim this deduction.

section 80D exemption

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Deduction Amount Under Section 80D

For Individuals Under 65 years of age (Non Senior Citizens) :- The deduction available to individuals under 65 years of age can be upto Rs 15,000. Which means if one pays premium against a health insurance of self, spouse, children, parents or dependents person whose age is less than 65 years than the available deduction on the mediclaim premium will be the actual amount of premium paid against the policy or Rs 15,000 whichever is less.

For Individuals Above 65 years of age (Senior Citizens) :- The deduction available to individuals above 65 years of age can be upto Rs 20,000. Which means if one pays premium against a health insurance of self, spouse, children, parents or dependents person whose age is more than 65 years than the available deduction on the mediclaim premium will be the actual amount of premium paid against the policy or Rs 20,000 whichever is less.

Some Important Points To Remember To Get The Benefit Of Deduction Available U/S 80D

  • Premium paid against health insurance premium can be claimed for deduction under section 80D. Other insurance premiums like premium for life insurance is not covered under this section.
  • Deduction against insurance premium under section 80D is available only to individuals and HUF. Partnership firms or companies are not allowed to claim deduction under this section.
  • Deduction is not permissible on making health insurance premium payment by cash. Payment made for premium by modes like cheque or Demand Draft (DD) is allowed under this section.

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One comment

  1. i have taken medical policy in my name and premium paid by cheque by my wife.
    can i take the deduction under section 80D. my wife is not taking deduction

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