Medical Insurance premium can save your taxes !
Eligible Assessees
This can be claimed by
Ø Individual (Self)
Ø HUF taxpayers
Ø Spouse, dependent children and parents of the individual
Ø Resident or Non resident
Eligible payments
a)Payments made towards medical insurance premium for own or family
b)Expenditure incurred on the account of preventive health check-up (up to INR 5,000 – any payment mode)
c)Any medical expenditure incurred on the health of senior citizen (aged 60 years or above) who is not covered under any health insurance scheme.
d)Contribution made to the Central Government health scheme or any scheme as notified by the government
# b) & c) is not applicable to HUF
Deduction
The amount on deduction depends upon the type of expenditure, mode of payment and the age & relation of the person for whom expenditure has being done.
Points to ponder - deductions
•Limit of INR 5,000 towards preventive medical / health check-up is included in the prescribed limit of INR 25,000 / INR 50,000
•HUF can take medical insurance policy for its members or incur medical expenditure on senior citizens in absence of any policy for any member of the family.
•The maximum amount of deduction is Rs. 25,000/-. If the member is a senior citizen, then the maximum deduction will be Rs. 50,000/-.
•HUF is not eligible to claim deduction for preventive health check-up.
Points to ponder - others
•Can be claimed only by individual and HUF tax payers. Firms or company cannot claim
•Only modes other than cash are allowed except for preventive health check ups
•Maximum deduction that can be claimed under section 80D is INR 1,00,000
•Family means spouse and dependant children
•“Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year
•Parents need not be dependent