Home > Income Tax > Deductions > Sec 80D – Deduction of Medical Insurance Premium

Sec 80D – Deduction of Medical Insurance Premium

U.C Date : 30 May 2015

Calculator for calculating deduction under section 80C

  • Assessment Year 2016-17
  • Assessment Year 2015-16 

The following conditions should be satisfied for claiming deduction under section 80D.

  1. Assessee should be individual or HUF (whether resident or non-resident)
  2. Payment is made for
  • The assessee himself, spouse, parents or dependent children of assessee in case of individual
  • Any member in case of HUF
  1. Payment is made out of income chargeable to tax.
  2. Payment is not made in cash. This condition is not applicable for payment of preventive health check-up.
  3. Medical expenditure incurred on the health of a very senior citizen is allowed only if no amount has been paid for for an insurance on health of such person.
  4. Payment is allowed as shown under
Individual HUF
Family Parents
Medi-claim insurance premium Allowed Allowed Allowed
Contribution made to Central Government Health Scheme or any scheme notified by Central Government Allowed Not Allowed Not Allowed
Preventive health check-up Allowed Allowed Not Allowed
Medical Expenditure on a “Very Senior Citizen” Allowed Allowed Allowed
  1. Calculation of deduction for Individual
Particulars Maximum Amount Remarks
Payment made for assessee himself or for familiy
(a) Medical Insurance N/a Aggregate of point (a),(b) and (c) cannot be more than Rs. 25,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.
Total deduction for points (a) to (d) cannot be more than Rs. 30,000.
(b) Contribution to Health Scheme N/a
(c) Preventive Heatlh Checkup Rs. 5,000
(d) Medical Expenditure for a very senior citizen Rs. 30,000
Payment made for parents
(a) Medical Insurance N/a Aggregate of point (a) and (b) cannot be more than Rs. 25,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.
Total deduction for points (a) to (c) cannot be more than Rs. 30,000.
(b) Preventive Heatlh Checkup Rs. 5,000
(c) Medical Expenditure for a very senior citizen Rs. 30,000
  1. Calculation of deduction for HUF
Particulars Maximum Amount Remarks
(a) Medical Insurance Premium Rs. 25,000 Aggregate of point (a) and (b) cannot be more than Rs. 30,000.Additional Deduction of Rs. 5,000 is allowed for the medical insurance premium paid for senior citizen or very senior citizen.
(b) Medical Expenditure for a very senior citizen Rs. 30,000

Family means the spouse and dependant children of the assessee.

Senior citizen is a resident individual who is of the age of 60 years or more at any time during the previous year.

Very Senior Citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

Bare Act for Sec 80D

Bare Act for Sec 80D

(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode [as specified in sub-section (2B),] in the previous year out of his income chargeable to tax.

(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—

(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family [or any contribution made to the Central Government Health Scheme] [or such other scheme as may be notified by the Central Government in this behalf] [or any payment made on account of preventive health check-up of the assessee or his family] as does not exceed in the aggregate twenty five thousand rupees; and

(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee [or any payment made on account of preventive health check-up of the parent or parents of the assessee] as does not exceed in the aggregate twenty five thousand rupees.

(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate thirty thousand rupees; and

(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate thirty thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause(d) shall not exceed thirty thousand rupees.”;

Explanation.—For the purposes of clause (a), “family” means the spouse and dependant children of the assessee.

[(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.

(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—

(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;

(ii) any mode other than cash in all other cases not falling under clause (i).]

(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1), shall be the aggregate of the following, namely:—

  1. whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate twenty-five thousand rupees; and
  2. the whole of the amount paid on account of medical expenditure incurred on the health of any member of the Hindu undivided family as does not exceed in the aggregate thirty thousand rupees:
    Provided that the amount referred to in clause (b) is paid in respect of a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
    Provided further that the aggregate of the sum specified under clause (a) and clause (b) shall not exceed thirty thousand rupees.”;

(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen or a very senior citizen, the provisions of this section shall have effect as if for the words “twenty-five thousand rupees”, the words “thirty thousand rupees” had been substituted.

(5)  The insurance referred to in this section shall be in accordance with a scheme made in this behalf by—

  1. the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
  2. any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).

Explanation.—For the purposes of this section,—
(i) “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;
(ii) “very senior citizen” means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

The following conditions should be satisfied for claiming deduction under section 80D.

  1. Assessee should be individual or HUF (whether resident or non-resident)
  2. Payment is made for
  • The assessee himself, spouse, parents or dependent children of assessee in case of individual
  • Any member in case of HUF
  1. Payment is made out of income chargeable to tax.
  2. Payment is not made in cash. This condition is not applicable for payment of preventive health check-up.
  3. Payment is allowed as shown under
Individual HUF
Family Parents
Medi-claim insurance premium Allowed Allowed Allowed
Contribution made to Central Government Health Scheme or any scheme notified by Central Government Allowed Not Allowed Not Allowed
Preventive health check-up Allowed Allowed Not Allowed
  1. Maximum amount of deduction
General Deduction (Deduction on account of preventive health check-up is up to maximum amount of Rs. 5,000) Rs. 15,000
Additional Deduction (Allowed for the medical insurance premium paid for senior citizen*) Rs. 5,000

*Senior citizen is a resident individual who is of the age of 60 years or more at any time during the previous year.

Bare Act for Sec 80D

Bare Act for Sec 80D

(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode [as specified in sub-section (2B),] in the previous year out of his income chargeable to tax.

(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—

(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family [or any contribution made to the Central Government Health Scheme] [or such other scheme as may be notified by the Central Government in this behalf] [or any payment made on account of preventive health check-up of the assessee or his family] as does not exceed in the aggregate fifteen thousand rupees; and

(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee [or any payment made on account of preventive health check-up of the parent or parents of the assessee] as does not exceed in the aggregate fifteen thousand rupees.

Explanation.—For the purposes of clause (a), “family” means the spouse and dependant children of the assessee.

[(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.

(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—

(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;

(ii) any mode other than cash in all other cases not falling under clause (i).]

(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate fifteen thousand rupees.

(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or in sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, the provisions of this section shall have effect as if for the words “fifteen thousand rupees”, the words “twenty thousand rupees” had been substituted.

Explanation.—For the purposes of this sub-section, “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.

(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by—

(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).]

Leave a Reply

Your email address will not be published. Required fields are marked *

Get updates and weekly newsletter in your email. Join more than 10,000 subscribers !