Health insurance policy and tax benefits to cover the cost of medical treatment.
Deduction in Medical Insurance Premium [Section 80D]
Pursuant to Section 80D, an individual or
HUF may claim a deduction in respect of the following payments:
1) Medical insurance premium is paid by
the appraiser, person / HUF by any method other than cash.
2) Any contribution made by the assessor
as an individual to the Central Government Health Scheme or other schemes that
may be advertised by the Central Government.
3) Money paid by the insurer, to be unique
due to preventive health check-ups.
4) The medical expenses incurred by the assessor
due to being a person / HUF on the health of a senior citizen person are paid
if no amount is paid or effectively insured on the health of such person.
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In whose name should the policy be adopted or spent?
In the case of a person, in the case of a
medical insurance policy taken in his own name, or in the name of his / her
spouse, his / her parents and his / her dependent children. In the case of HUF,
a policy can be taken regarding the health of any member of such HUF.
The reduction due to medical expenses will
be allowed only when it will be spent for the health of the above persons who
are senior citizens. ‘Senior Citizen means a person living in
The amount of deduction
(1) In the case of an individual, the
amount of deduction cannot exceed:
A. Rupees Twenty Five Thousand as total, in
case of the deposit amount of medical insurance premium or any payment made for
a preventive health check (*). [This discount is available for the benefit of
the valuer, his / her spouse or dependent children]
B. 25,000, in total, in case of payment of
medical insurance premium or any payment made for preventive health examination
(*). [This discount is available if payment is made for the benefit of the
designated parent.]
C. A total of Rs. 50,000 / - for the
health of the assessor, his / her spouse or dependent children or parents.
[This deduction is available if the payment is made for the benefit of a senior
citizen and no insurance is paid for or affects the health of such person.]
D. A total of Rs 50,000 for medical
expenses for the health of any parent of the rupee appraiser.
(*) The total amount spent for preventive
health check-up of the assessor, his family and parents cannot exceed Rs. 5
thousand.
Note: In the aforesaid sections of a and
b, an additional discount of Rs.5000/-
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Payment method
Payment should be made by any method other
than cash (however, money can be made in cash for preventive health check-ups).
Illustration
Mr. Raja (age 40 years) paid the following the amount for the financial year 2021-22:
1) Payment of medical insurance premium in
his policy 15,000.
2) Payment of medical insurance premium in
his wife's policy 4,000.
3) Payment of medical insurance premium.
4) Payment of medical insurance premium in
the policy of her eldest daughter who is self-employed and not dependent on
her. 5 thousand.
5) The Payment of premium insurance of
medical policy of his parents (resident and 68 years old), Rs. 18,000 on his
father's policy and Rs. 18,000 on his mother's policy. Both Mr. Depending on
the king's brother.
6) Pay 3,000 for the cost of preventive
health check-ups (for his own check-up and his wife's check-up).
Reduction in the cost of training/treatment
of a dependent, disabled person [Section 80DD]
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A resident / HUF, bearing the maintenance
costs of relative dependents, a disabled person, may claim deduction under
section 80DD. Discounts are available on any of the following:
The Cost of medical treatment (including
nursing), for persons with disabilities.
Disability means: -
This type of person suffers from a
specific disability which usually includes blindness, low vision, leprosy,
hearing impairment, locomotors disability, mental retardation and mental
illness [see section 2 (i) of. Act, 1995
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Severely disabled person means: -
1. Persons with one or more disabilities of 80% or more, whose persons with disabilities are equal to Section 56 (4) (equal opportunity, protection of rights and full participation) Act, 1995 (1 of 1996); Or
The amount of deducting
If the taxpayer has incurred any of the
expenses mentioned in (a) or (b) above, then Rs. The amount of such expenses is
available regardless of 75,000. However, if the dependent is suffering from a
serious disability (e.g., 80% or more disability), the discount amount will be
Rs. 1,25,000.
