Sec 80D: Deduction for Medical Insurance and Expenditure

Deduction u/s 80D is available up to Rs. 25,000 to an assessee of premium paid for Medical insurance of self, spouse and dependent children. If assessee or spouse is 60 years old or more the deduction available is Rs 30,000 (this limit has been increased to Rs 50,000 w.e.f A.Y 2019-20). Assessee can claim additional deduction for insurance premium paid for parents (father or mother or both, whether they are dependent or not) is available to the extent of Rs. 25,000 if less than 60 years old and Rs 30,000 (this amount has been increased to Rs 50,000 w.e.f A.Y 2019-20) if parents are 60 years old or more.

If in case uninsured super senior citizens (80 years old or more) medical expenditure up to Rs 30,000 incurred, shall be allowed as a deduction under sec 80D. The aggregate of health insurance premium and medical expenditure incurred for parents would be limited to Rs. 30,000. However with effect from A.Y 2019-20 this provision has been extended to senior citizen and the amount has been increased to Rs 50,000.

For example, If an individual has paid medical insurance premium of his mother(aged 81 years) of Rs. 17000 and also incurred medical expenditure of Rs. 18000. Also he incurred medical expenditure for his father (aged 85 years) for Rs. 12000. Now, total deduction allowed will be Rs. 17000+12000 i.e. Rs.29000. This is because for mother, medical insurance has also been taken so no deduction for medical expenditure of Rs.18000 will be allowed. But for father, deduction of medical expenditure of Rs.12000 is allowed. Remember, if medical expenditure of father is Rs.20000, then only Rs.12000 would have been allowed for deduction (18000+12000=30000*)

*Max limit is Rs.30000. (this amount has been increased to Rs 50,000 w.e.f A.Y 2019-20)

To claim this deduction, it is mandatory that the above payments should be made by any mode other than cash (e.g. cheque, debit card, draft etc.)

Sec 80D: Deduction for Preventive Health Check-Up

If payment of preventive health check-up of either the individual himself or his family members which includes spouse, parents and dependent children then deduction of Rs. 5000 will be allowed under this section. This deduction is included in the above deduction and NOT in addition to the deduction of Rs.25000/ 30000/ 50000 (w.e.f 2019-20) stated above.

The maximum total deduction Rs.5000 is allowed. This deduction for health check-up is not per person but in total. For example if a person pays an amount for preventive health check up of himself + spouse + dependent children, the gross total deduction allowed would be Rs. 5000.

For preventive health check-up payment can be made by any mode for claiming deduction (including cash).Therefore, the maximum deduction available under this entire sec 80D is to the extent of Rs. 1,00,000.

Lalita Sharma

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