How to Claim your Medical Insurance Premium u/s. 80D ?

DEDUCTION IN RESPECT OF MEDICAL INSURANCE PREMIA SEC 80D

If the following conditions are satisfied then an assessee may claim deduction under this section.

• The taxpayer is an individual or a Hindu undivided family.
• Insurance premium is paid by the taxpayer in accordance with the scheme framed in this behalf by the General Insurance Corporation of India and approved by the Central Government. The scheme is known as “mediclaim” insurance policy. (The amount deposited in a similar scheme of any other insurer who is approved by the Insurance Regulatory and Development Authority shall also be eligible for deduction).
• The aforesaid premium is paid by cheque.
• Mediclaim policy is taken on the health of the taxpayer, on the health of spouse, dependent parents or dependent children of the taxpayer. In case of HUF on the health of any member of the family.

HEALTH POLICY ANALYSIS

Note: If the mode of the payment is not given, then make an assumption that premium is paid by cheque out of taxable income

PROBLEM

Sri "X" submitted the following particulars under section 80(d) Medical Insurance premium:

Self: 10,000____Father(age 69 years): 24000

Solution

For self:

Least of the two amounts: 10,000

For father:

Least of the two amounts: 20,000

TOTAL: 30,000

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e-Book on Income Tax Deductions u/s. 80C to 80U for A.Y. 2017-18

There are so many Income Tax Deductions which are allowed to be claimed by an Salaried Employee, Individual or HUF. Though this a few Income Tax Deductions are very useful, which can be easily claimed and are helpful in reducing the tax burden. 

What do you mean by Tax Deductions ?

Tax deduction helps to reducing your tax-liabilities. It decreases your overall tax liabilities and save tax and grow savings. However, depending on the type of tax deduction you claim, the amount of deduction varies. You can claim tax deduction for amounts spent in tuition fees, medical expenses and charitable contributions. Also, you can invest in various schemes such as life insurance plans, retirement savings schemes, and national savings schemes etc. to get tax deductions. The government of India offers tax exemptions for various expenses incurred in different activities to encourage individuals and commercial institutions take part in activities having social benefits.

A number of day-to-day expenditures qualify for deductions, with information about them being crucial to help us save money. Tax deduction can be claimed on money spent for education, medical expenses, charitable contributions, investments in insurance, retirement schemes, etc. These deductions have been put in place to encourage members of the society to participate in certain useful activities, helping everyone involved in the process.

The following e-Book helps you to know more about Income Tax Deductions u/s. 80C to 80U.

e-Book about Income Tax Deducation u/s. 80C to 80U

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Extend Exemption Limit and New Amendment in respect of u/s. 80C, 80CCC, 80CCD, 80G, 80D, 80DDB, 80U etc.For A.Y. 2016-17

Recently Budget-2015 announced for complete year by Finance Minister with new amendments and extension of Exemption Limit u/s. 80C, 80CCC, 80CCD, 80G, 80D, 80DDB, 80U etc. w.e.f. 1st April, 2015, which are as under:

Sukanya Samriddhi Scheme

Deduction under Section 80C & Tax free interest Sukanya Samriddhi Scheme meaning Girl Child Prosperity Scheme is a special deposit scheme launched by Prime Minister for girl child. Under the scheme, an interest of 9.1 per cent is provided on deposited amount which is tax free. Under this scheme, a bank account can be opened by the parent or legal guardian of a girl child of less than 10 years of age with a minimum deposit of Rs. 1,000/-up to Rs. 1, 50,000/- in any post office or authorised branches of commercial bank in an year. Partial withdrawal up to 50 per cent of the account balance is allowed to meet education expenses of the girl child till she attains 14 years of age. The account will remain operative up to 21 years of age of girl child or till marriage of the girl child. Deduction Under section 80C is also available for the amount contributed every year.

SECTION WISE DEDUCTIONS :

Deduction u/s 80CCC:

Deduction in respect of contribution to notified Pension Schemes under Section 80CCC has been increased to Rs. 150,000/- from Rs. 100,000/-.

Deduction u/s 80CCD:

Additional deduction of Rs. 50,000 for contribution to National Pension Scheme u/s 80CCD shall be allowed to all individuals.

Deduction u/s 80G:

• Donation made to National fund for control of Drug Abuse eligible for 100% deduction(Effective from 1 April, 2016)
• 100% deduction for contributions, other than CSR, to Swachh Bharat Kosh and Clean Ganga Fund(Effective retrospective from 1st April, 2014)

Deduction u/s 80D:- (Health Insurance)

Super Senior Citizens above the age of 80 years who are not covered by Health Insurance, to be allowed deduction of Rs. 30,000 towards actual medical expenditure. (Effective from 1st April, 2016)

Serious Diseases (u/s. 80DDB): 

Deduction limit of Rs. 60,000 to be enhanced to Rs. 80,000 with respect to specified diseases of serious nature for senior citizen u/s 80DDB. (Effective from 1st April, 2016.

Disability Deduction (u/s. 80U): 

Deduction limit of Rs. 50,000 to be enhanced to Rs. 75,000 for disabled person along with enhancement of limit of Rs. 1 Lac to Rs. 1.25 Lacs in case of severe disability u/s 80U of Income Tax Act. (Effective from 1st April, 2015).

New Section 80JJA :

80JJA –Special deduction for employment creation The existing provisions contained in section 80JJAA of the Act, inter alia, provide for a deduction to an Indian company, deriving profits from manufacture of goods in a factory, equal to 30% of additional wages paid to new regular workmen, in excess of 100 workmen employed by the assessee in such factory, in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided. A further deduction is allowed for every increase beyond 10% of regular workforce for 30% of their salary up to 3 years. With a view to encourage generation of employment, it is proposed to amend the said section so as to extend the benefit to all assesses having manufacturing units (rather than restricting it to corporate assesses only) employing new regular workmen in excess of fifty workmen employed during the previous year. This amendment will take effect from Assessment Year 2016-17.

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Notified Contributory Health Service Scheme under section 80D.

The Central Board of Direct Taxes has notifies the Contributory Health Service Scheme of the Department of Spcae for the purpose of said Clause under section 80D for the Assessment Year 2014-15 and subsequent Assessment Years.  The full notification is as under:

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,

PART-II, SECTION-3, SUB-SECTION (ii)]

Government of India

Ministry of Finance

Department of Revenue

[Central Board of Direct Taxes]

INCOME-TAX

NOTIFICATION

****

New Delhi, the 15th January, 2014

S.O.107 (E). — In exercise of the powers conferred by clause (a) of sub-section (2) of section 80D of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the Contributory Health Service Scheme of the Department of Space for the purposes of the said clause for the assessment year 2014-15 and subsequent assessment years.

[Notification No.6/2014 (F. No. 149/97/2013 –TPL)]

Sd/-

(Arju Garodia)

Under Secretary (TPL)

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Deduction U/s. 80DDB, U/s. 80U & person with disability.

The deduction u/s 80DDB is available if the expenses for the medical treatment of specified disease or ailment is incurred by assessee on himself or on dependant. The specified disease for the purpose of section 80DDB is prescribed in Rule 11DD as under:
    11DD. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :
    (i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
    (a) Dementia ;
    (b) Dystonia Musculorum Deformans ;
    (c) Motor Neuron Disease ;
    (d) Ataxia ;
    (e) Chorea ;
    (f) Hemiballismus ;
    (g) Aphasia ;
    (h) Parkinsons Disease ;
    (ii) Malignant Cancers;
    (iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
    (iv) Chronic Renal failure ;
    (v) Hematological disorders :
    (i) Hemophilia ;
    (ii) Thalassaemia.
The amount of deduction allowable under section 80DDB is the expenditure actually incurred or Rs. 40,000/- (Rs. 60,000/- for senior citizen) whichever is lower.

Deduction under section 80U of the I.T. Act, 1961 is available to an individual who is resident and who at any time during the previous year is certified by a medical authority to be a person with disability.
    “Person with Disability” means a person suffering from not less than 40% of any of the disability given below:
    i) blindness
    ii) low vision
    iii) leprosy-cured
    iv) hearing impairment
    v) locomotor disability
    vi) mental retardation
    vii) mental illness
    viii) austim
    ix) cerebral palsy
    x) multiple disability referred to in clauses (a), (c), & (h) of section 2 of the National Trust for welfare of persons with Austim Cerebral Palsy, Mental Retardation & Multiple Disabilities Act-1999.
    The deduction under this Section is a sum of Rs 50,000/- in normal cases and if the person is suffering from a severe disability (80% or more) then with effect from F.Y. 2009-10, a sum of Rs. 1,00,000/- is allowable as deductions.
    As far as the arrears of the TA received during the year is concerned, you can claim the benefit of deduction available u/s 89(1) in respect of arrears payment.

Source: The Hitwada News Paper

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