As per Income Tax Law the Income Tax Deduction Limit u/s. 80D, 80DD and 80U are as follows:
Section 80D enables an assessee to claim deduction from Gross Total Income the following payment:
Section 80D enables an assessee to claim deduction from Gross Total Income the following payment:
- Payment of health insurance premium of assessee or his family or his parents
- Contribution to the Central Government Health Scheme
- Payment for preventive health check up of the assessee or his family or his parents.
Amount of Deduction:
Deduction can be claimed by an individual in respect of the medical insurance premium paid up to Rs 15,000/- for himself and his spouse and dependent children. Additionally, he can also claim deduction for the medical insurance premium up to Rs 15,000 for his parent(s). The aforesaid deductions shall be Rs 20,000 in case the premium is paid for senior citizen (60 years or more from the FY 2012-13).
A Precaution:
Deduction can be claimed by an individual in respect of the medical insurance premium paid up to Rs 15,000/- for himself and his spouse and dependent children. Additionally, he can also claim deduction for the medical insurance premium up to Rs 15,000 for his parent(s). The aforesaid deductions shall be Rs 20,000 in case the premium is paid for senior citizen (60 years or more from the FY 2012-13).
A Precaution:
- Ensure to make the payment by cheque only.
- There is a max ceiling of Rs. 5,000/- on preventive health check up from the FY 2012-13 within the overall limit mentioned above.
Deduction U/s 80DD
Deduction under this section is available to an individual/HUF who incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependent or Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. A deduction admissible u/s 80DD is of Rs 50,000/- in normal course. Where the dependant is a person with a severe disability, a higher deduction of Rs 1,00,000/- is allowed. The term 'dependent', as mentioned above, refers to the spouse, children, parents and siblings of the assessee who are dependent on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes u/s 80U. The dependant for the purpose of section 80DD has to be a “person with a disability”.
