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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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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Exemption of Medicalim u/s. 80D and its Calculations for Asstt. Year 2013-14.

Taxpayee wants to save Income Tax except Exemption Limit in the Asstt. year 2013-14 (i.e., FY 2012-13), an individual can claim deduction towards any sum paid on account of preventive health check up of himself, spouse, dependant children or parents. It may be noted that the total deduction towards preventive health check up cannot exceeds Rs. 5,000/-. The said deduction is admissible u/s 80D of the Income Tax Act-1961 & is over and above the deduction of Rs. 15,000/- / Rs. 20,000/- otherwise also available towards mediclaim policy.   The best option is that Mediclaim Exemption to save Income Tax u/s. 80D and secure the heath. The medicalim Policy is for Individual and HUF are available and get benefit of Tax u/s. 80D. The details regarding 80D and medicalim Insurance are as under:

1. Addition to section 80 C: Section 80D is available other than 100000 deduction available under 80C for life insurance, ppf, gpf, tuition fee, ULIP, House loan repayment etc.
2. Insurer covered: This deduction is available for medical claim policy which should be framed in this behalf by
* by GIC (General insurance Corporation) or by
* any other insurer but approved by IRDA (Insurance Regulatory Development authority)
3. Available to : Deduction is available to
* Individual (resident or non resident, Indian Citizen or foreign citizen)
* HUF(Hindu undivided Family may be resident or non resident)
4. Mode of payment: Insurance Premium should be paid by any mode other than by Cash . Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income : The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must: The premium is to be paid to effect or keep inforce insurance policy ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?: First deduction given below : Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents: Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000: Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)

Amount Of deduction : Two type of Deductions are available to Individuals under this section from Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for of any member of the HUF.

Addition deduction for Resident Senior Citizen: In addition to two point above, additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior citizen in case two.And same in the case of HUF assessee if policy has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

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Deductions of Medical Treatment etc. u/s. 80DDB for Asstt. Year 2013-14.

Section 80DDB allows a deduction in case of employee, who is resident in India, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules HDD (1) (see Annexure) for himself or a dependant. The deduction allowed is equal to the amount actually paid or Rs. 40,000 whichever is less. Further the amount paid should also be reduced by the amount received if any under insurance from an insurerer or reimbursed by an employer. In case of a senior citizen (an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year) the amount of deduction allowed is Rs. 60,000/-.

DDO must ensure that the employee furnishes a certificate in Form 10-I from a neurologist, an oncologist, a urologist, nephrologist, a haematologist, an immunologist or such other specialist, as mentioned in proviso rule 11(2) of the Rules.

For the purpose of this section in the case of an employee "dependant" means individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

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Limit of Deduction u/s. 80D, 80DD and 80U of Income Tax for Senior Citizen and Other Individuals.

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:

• 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:

• 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.

Further, you may examine the availability of deduction u/s 80DD of the Income Tax Act-1961 as under:

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”.

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Taxfree perquisites for Assessment Year 2013-14 for Salaried Employee.

It is general demand of salaried employee (Taxpayee) regarding calculations of Income Tax for the Assessment Year 2013-14 to Deposit Savings, Demand of Tax etc. Thus the taxpayee go through Chaperter-VIA to save tax and project to invest for growing Deposit Savings. In accordance with this  Salaried Employee (Taxpayee) searches Tax free perquisites.  In Fin. year 2012-13 and Assessment Year 2013-14 Taxfree perquisites for Salaried Employee who deducted Tax as TDS monthly from his salary are as follows:

1. Medical Facility or Medical Reimbursement:

• Medical Facility :- The value of any medical treatment provided to an employee or any member of his family in a hospital, dispensary or a nursing home maintained by the employee shall be a tax free perquisite.
• Medical Reimbursement : Any sum paid by the employer in respect of any expenditure incurred by the employee on his medicaltreatment or treatment of any member of his family subject to maximum of Rs. 15,000 in the previous year.

2. Recreational Facilities : Any recreational facility provided to a group of employees (not being restricted to a select few employees) by the employer is not taxable.

3. Training of Employees: Any expenditure incurred by the employer, for providing training to the employees or by way of payment of fees of refresher courses attended by the employees.

4. Use of health club, sports and similar facilities provided uniformly to all employees by the employer.

5. Expenses on Telephone, including a mobile phone, actually incurred on behalf on the employee by the employer.

6. Employer’s Contribution: Employer’s contribution to superannuation fund of the employee or provided such contribution does not exceed Rs. 1,00,000 per employee per year.

7. The premium paid by the employer on an accident policy taken out by it in respect of the employee would not be a perquisite. [CIT v Lala Shri Dhar (1972) 84 ITR 192 (Del) and CIT v Vinay Bharat Ram (1981) 129 ITR 128 (Del)].

8. Motor car provided by the employer to the employee or expenses incurred by the employer in connection with motor car belonging to the employee (for purposes other than exclusively for personal purposes) shall be a tax free perquisite in the hands of the employee.

9. Amount given by the employer of assessee to assessee’s child as scholarship is exempt under section 10(16). [CIT v B.L. Garg (2006) 155 Taxman 189 (All)]

10. Food and Beverages provided to Employees: The following shall be a tax free perquisite in the hands of the employees-

• free food and non-alcoholic beverages provided by the employer to his employees during working hours:

(a) at office or business premises or
(b) through paid vouchers which are not transferable and usable only at eating joints.
Provided the value of such meal is upto Rs. 50 per meal.
(ii) Any tea or snacks provided during working hours.
(iii) Free food and non-alcoholic beverages during working hours provided in a remote area
or offshore installation.
11. Loans to Employees : - In the following cases the value of benefit to the assessee resulting from the provision of interest free or concessional loan shall be nil :
(a) where the amount of loans are petty, no exceeding in the aggregate Rs. 20000;
(b) Loans made available for medical treatment in respect of disceases specified in rule 3A of the Income-tax Rules. However, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.

12. Perquisites provided outside India : Perquisites provided by the Government to its employees, who are citizens of india for rendering services outside India, are not taxable. [Section 10(7)].

13. Rent Free House/Conveyance Facility: Rent free official residence and conveyance facilities provided to a Judge of the Supreme Court/High Court is not a taxable perquisite.

14. Specified Perquisite allowed to certain Persons:
(a) Specified perquisites allowed to Judges of the Supreme Court, Chief Election Commissioner, Election Commissioner.
(b) Chairman or retired Chairman, member or a retired member of U.P. S.C.
are not taxable perquisites.

15. Residence to officials of Parliament etc. :- The Rent Free furnished residence (including maintenance thereof) provided to an officer of the Parliament a Union Minister or Leader of Opposition in Parliament, is not a taxable perquisite.

16. Accommodation in a Remote Area : - The accommodation provided by the employer shall be a tax free perquisite if the accommodation is provided to an employee working at mining site or an onshore oil exploration site or a project execution site, or a dam site or a power generation site or an offshore site which -
(a) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometres away from the local limits of any municipality or a cantonment board; or
(b) is located in a remote area.

17. Educational Facility for Children of the Employee: where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, there shall be no perquisite value if the cost of such education or the value of such benefit per child does not exceed Rs. 1,000 p.m.

18. Use by the employee or any member of his household of laptops and computers belonging to the employer or hired by him.

19. Leave Travel Connection will be discussed in detail later.

20. Tax paid by the Employer on Non-Monetary Perquisites : Tax paid by the employer on non-monetary perquisites of the employee shall be exempt in the hands of the employee. [Section 10(10CC)]

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Can Applicable section 50C of Income Tax to Builders ?

Section 50C of income tax act is not applicable to a builder as his assets as plots and buildings are his stock in trade and not capital assets.

IT : Section 50C not applicable to sale of plots by a builder since plots are his stock-in-trade and not capital assets

• Section 50C uses the word 'capital asset'; for applicability of section 50C one of the essential requirements is that land or buildings sold should be capital asset; stock in trade has been excluded from the definition of capital asset by sec. 2(14).
• Investment in purchase and sale of plots by a builder who is indulged in selling buildings is ancillary and incidental to his business activity; 'stock-in-trade' includes all such chattels as are required for the purposes of being sold or let to hire on a person's trade; [See also • Addl.CIT v. Puttu Coal (P.) Ltd. (1983) 140 ITR 740 (Bom) where the assessee was money lender, who purchased a ship in satisfaction of his major portion of outstanding loan and the ship was considered as stock in trade of the assessee's money lending business].
• In the present case, assessee has treated plots of land as stock in trade in its balance sheet. - [2012] 20 taxmann.com 381 (Allahabad)
  

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Effect on Income Tax by Section 80C Deduction and its guidelines.

Section 80C of income tax act:- In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:


Provident Fund & Voluntary Provident Fund
Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer’s contribution. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free.

Public Provident Fund
An account can be opened with a nationalized bank or Post office. The current rate of interest is 8%, which is tax-free and the maturity period is 15 years. The minimum amount of contribution is Rs 500 and the maximum is Rs 70,000.

National Savings Certificate
These are 6-year small-savings instrument, where the rate of interest is 8% and is compounded half-yearly. The interest accrued every year is liable to tax but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Equity-Linked Savings Scheme
Mutual funds offer you specially-created tax saving funds called ELSS. These schemes invest your money in equities and hence, return is not guaranteed. Money invested here is locked for a period of three years.

Life Insurance Premiums
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can be included in section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums can be included. Besides this, investments in unit-linked insurance plans (ULIPs) that offer life insurance with benefits of equity investments are also eligible for deduction under Section 80C.

Home Loan Principal Repayment
Your EMI consists of two components, namely principal and interest. The principal component of the EMI qualifies for deduction under Section 80C.

Stamp Duty and Registration Charges For Home
The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C. However, this can be done only in the year in the year of purchase of the house.

Five-Year Bank fixed deposits
Tax-saving fixed deposits (FDs) of scheduled banks with a tenure of five years are also entitled for section 80C deduction.

Others
Apart from the above, things like children’s education expenses that can be claimed as deductions under Section 80C. However, you need receipts to claim the same

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How to determine and undertaking Deductions u/s. 80IC of Income Tax Act.

In respect to determine and undertaking Deductions u/s. 80 IC of Income Tax in certain special category states are as under:

Assessee eligible for deduction: - every assessee is eligible for this deduction irrespective of its residential status or corporate status. Deduction is operative from the assessment year 2004-05 and onwards.

Conditions to be satisfied: - the following conditions to be satisfied for the deductions under section 80 IC of income tax act.

Return of income to be furnished: - under section 80 AC of income tax act, the assessee should furnish return of income within the time limit specified under section 139(1) of income tax act.

Accounts of the enterprises or undertaking to be audited: - under section 80IA (7) of income tax act, the accounts of the assessee should be audited by a chartered accountant from the relevant year for which deduction is claimed. The report of such report should be furnished along with the return of income in the prescribed form duly signed and verified by chartered accountant.

Undertaking should be new and not formed by splitting up or reconstruction of an existing business: - under section 80IC (4) of income tax act, the object of these incentives is to promote new investment and not just relocation of existing ones. Therefore, it has been provided that the eligible undertaking should be new and not formed by splitting up and reconstruction of an existing business.

Exception in case of re-establishment, reconstruction of revival of an undertaking: - however this condition does not apply where the undertaking is discontinued due to extensive damage or destruction of its building, machinery or plant and furniture or account of natural disasters, civil disturbance, accidental fire or explosion, enemy action etc. and such undertaking is re-established within 3 years from the end of such previous year.
New plant and machinery used by the undertaking: - under section 80 IC (4) of income tax act, use of old plant and machinery is prohibited except under the following cases.

For import and use of second hand plant or machinery in India is deemed to be a new plant and machinery. Second hand plant or machinery imported and put to use for the first time in India is not to be regarded as machinery or plant previously used provided the following conditions are satisfied.
(1) It was used outside India by a person other than the assessee.
(2) Such plant and machinery is used in India for the first time.
(3) No depreciation in respect of such plant and machinery has been allowed or is allowable under the act for a period prior to its installation by the assessee.

Transfer of old plant or machinery not exceeding 20% of the total value of plant or machinery of the new undertaking :- where the value of plant or machinery previously used by the assessee is transferred to the new undertaking, such value should not exceed 20% of the total value of plant or machinery used in the new undertaking.

Production schedule, nature of product and location: - the enterprise or undertaking must manufacture or produce the specified articles or things within the stated time period in special category states. An existing enterprise or undertaking manufacturing or producing eligible articles or things will be covered, provided it’s substantially expands its business.

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How to claim Mediclaim Exemption u/s. 80D of Income Tax Act?

Now a days, Taxpayee (Assessee) are engaged to see how to save Income Tax from various criteria. The best option is that Mediclaim Exemption to save Income Tax u/s. 80D and secure the heath. The medicalim Policy is for Individual and HUF are available and get benefit of Tax u/s. 80D. The details regarding 80D and medicalim Insurance are as under:

1. Addition to section 80 C: Section 80D is available other than 100000 deduction available under 80C for life insurance, ppf, gpf, tuition fee, ULIP, House loan repayment etc.
2. Insurer covered: This deduction is available for medical claim policy which should be framed in this behalf by
* by GIC (General insurance Corporation) or by
* any other insurer but approved by IRDA (Insurance Regulatory Development authority)
3. Available to : Deduction is available to
* Individual (resident or non resident, Indian Citizen or foreign citizen)
* HUF(Hindu undivided Family may be resident or non resident)
4. Mode of payment: Insurance Premium should be paid by any mode other than by Cash . Means if insurance premium is paid by cash then no deduction is available.Before Assessment year 2008-09 ,only payment by cheque was allowed under this section but from Ay 2008-09 onwards the deduction is allowed by other mode also like online payment which is now a days is very popular or by credit card is also allowed.
5. Out of Income : The amount should be paid out of the income chargeable to tax.
6. Proposer of the policy is not must: The premium is to be paid to effect or keep inforce insurance policy ,there is no condition that assessee should be the proposer of the policy ,
7. Partly contribution: Assessee can partly contribute the premium amount but amount should be paid directly to insurance company and paid through mode other than by cash (see example)
8. Insurance cover on?: First deduction given below : Insurance Premium may be paid for medical claim insurance policy for assessee himself or spouse or dependent children or any combination of three.
9. Addition for parents: Second deduction given below:Insurance premium may be paid for medical claim insurance for assessee parents (father or mother or for both)
10. Deduction upto 40000: Theoretically ,maximum deduction can be claimed for Rs 40000.(detail as given below)

Amount Of deduction : Two type of Deductions are available to Individuals under this section from Assessment year 2009-10

1. Deduction on Medical insurance premium paid for himself,spouse,dependent children =Rs 15000 maximum.
2. Deduction on Medical insurance premium paid for parents ,whether dependent on assesee or not =Rs 15000 maximum

Deduction to HUF: Deduction to HUF is available on insurance premium paid for policy taken for of any member of the HUF.

Addition deduction for Resident Senior Citizen: In addition to two point above, additional deduction of Rs 5000 is available where assessee or his spouse (wife or husband) or dependent parents or any member of the family in case one and father or mother is a resident in India and a senior citizen in case two.And same in the case of HUF assessee if policy has been taken on member which is senior citizen than additional Rs 5000/- deduction is available also to HUF.

Senior citizen means who is at least of 65 year of age or more at any time during the previous year.

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Section-wise Limit of Deduction Under Chapter-VIA for Salaried Employee.

The Maximum Limit of Deductions under chapter - VIA as per each Income Tax section for salaried Employee to invest fund and utilized the Tax Limit under chapter-VIA for the Financial Year 2011-12 and Assessment Year 2012-13. Employee did not aware about what type of deductions can be claimed under Chapter-VIA by him to avoid undue deductions of Income Tax from his Salaries. The following deductions are relating to salaried Employees:

Deductions at a Glance to Salaried Taxpayee:

Serial No’s	Sections	Particulars	Assessee to whom allowed	Quantum of Deduction
1	80CCC	Deduction in respect of contribution to certain pension funds	Only Individuals	Max. Rs. 1,00,000
2	80CCD	Deduction in respect of contribution to new pension scheme	Any employee or a self-employed person	In case of employees maximum 10% of salary and in case of self-employed persons 10% of Gross Total Income
3	80CCE	Limit of deduction u/s. 80C,80CCC and 80CCD (only employees contribution to New Pension Scheme to be included for the limit of Rs. 1,00,000)	Individual or HUF	Max. Rs. 1,00,000
4	80CCF	Deduction in respect of Long-Term infrastructure bonds.	Individuals or HUF	Max. Rs. 20,000
5	80D	Deduction in respect of medical insurance premia w.e.f. A.Y. 2011-12 any contribution made to the Central Government Health Scheme (CGHS) shall also be eligible for deduction	Individual or HUF whether resident or non-resident.	In Case of Individuals
				(i) For individual himself, spouse and dependent children Rs. 15,000
				(ii)
				For parents of the individuals, whether dependent or not. RS. 15,000
				In case of HUF Rs. 15,000
				Note:- Addl. Rs. 5,000 if any of the above person insured is a senior citizen.
6	80DD/	Deduction in respect of maintenance including medical treatment of person with physical disability.	Individual or HUF resident in India:
	Rule 11A		1) With disability	Rs. 50,000
			2) With severe disability.	Rs. 1,00,000
7	80DDB/	Deduction in respect of medical treatment etc.	Individual or HUF resident in India	Rs. 40,000
	Rule 11DD		For senior citizen	Addl. Rs. 20,000
8	80E	Deduction for interest paid on loan taken for pursuing his higher education or for the purpose of higher education of his relative. Higher education shall cover all post schooling courses.	Individual whether resident or not.	Actual amount paid.
		“Relative” means the spouse and children of the individual.
9	80G/Rules 11AA & 18AAA	Deduction in respect of donations to certain funds, charitable institutions, etc.	All assesses	(a) 100% or 50% of eligible donations, without applying qualifying limit in certain cases.
				(b) 100% or 50% of eligible donations, after applying Qualifying limit of 10% of adjusted GTI.
10	80GG and Rule 11B	Deductions in respect of Rent Paid	Individual only	Max. Rs. 2,000 p.m.
11	80GGA	Deduction in respect of certain donations for scientific research or rural development, etc. w.e.f A.Y. 2011-12 donations to any research association will be eligible for deduction.	All assesses no having business income.	100% of sum donated.
12	80GGC	Deduction in respect of contribution to political parties/Electoral Trust	All assesses (except local authority and artificial judicial person)	100% of sum contributed.
13	80QQE	Deduction in respect of royalty income, etc. of authors of certain books other than text books.	Individuals who are residents in India and are authors.	Actual income or Rs. 3,00,000 whichever is less.
14	80RRB	Deduction in respect of royalty on patents.	Individual who is resident in India and is a patentee.	100% of such income or Rs. 3,00,000 whichever is less.
15	80U/Rule 11D	Deduction in the case of permanent physical disability (including blindness)	Resident Individual:	Rs. 50,000 in case of a per with disability.
				Rs. 1,00,000 in case of a person with a severe disability.

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Know what is Mediclaim, its Section (Income Tax) & their Deductions.

Deduction in respect of Medical Insurance Premium (Mediclaim) paid to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or HUF on the health of any members of the family. A Mediclaim policy is a must because should you fall sick or meet with an accident, your medical bills could wipe out your savings.

Features of Mediclaim policy:

1. Premium based on Age: - As in term insurance, the premium rates will vary among the insurers and will also depend on your age. The older you are, the heftier the premium. For instance, Mediclaim policy from General Insurance Corporation has a fixed premium till 35 years and then it changes in 10-year slabs.

2. Who is it available to?

Individual (resident or non resident, Indian Citizen or foreign citizen):- In case an individual is taking the deduction, the medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse, parents or dependent children* of the taxpayer.

HUF(Hindu undivided Family may be resident or non resident) :- In case a HUF is taking the deduction, the medical insurance policy can be taken in the name of any member of the family.

Note: Dependent Children (i.e. legitimate or legally adopted children). Children above 18 years, if employed, can not be covered. Male children, if not employed, but a bonafide student can be covered upto age of 25 years. Female children, if not employed, can be covered until the time she is married.
parents need bot be dependent on the Assessee.
parents of Individual or Spouse both are covered.

3. Entry Age: This insurance is available to a person between the age of 18 to 59 years. However, the Policy can be renewed upto the age of 80 years.

a) Children above the age of 3 months can be covered provided parents are covered concurrently and suitable premium is paid. If the child above 18 years is employed or if the girl child is married, he or she shall cease to be covered under the policy. However male child can be covered upto the age of 25 years if he is a bonafide regular student and fully dependent on primary insured. Female child can be covered upto the time, she is unmarried.

b) If the insured has taken continuous Mediclaim insurance policy with us for at least 5 years prior to attaining the age of 80 years the policy can be renewed beyond the age of 80 upto the age of 90 years as a special case with the approval of Regional Incharge on case to case basis. The premium chargeable shall be 10% of the premium for 75-80 years age slabs for proposers above 85 and 20% of the premium for 75-80 age slabs for proposers above 90.

c) No inclusion of family member during currency of policy is permissible except for a new born child between the ages of 3 months to 6 months and newly married spouse within 60 days of marriage. Otherwise inclusion of family member shall be allowed only at the time of renewal. Prorata premium shall be charged for such inclusion during the currency of the policy for the unexpired period.

4. Sum Insured: Minimum sum insured shall be Rs 50,000/- and can be increased in multiples of Rs 25,000/-upto Rs 5 lacs. The sum insured must be identical for primary insured and the dependents. However, the children may be covered for 50% Sum Insured as per 4 above.

5. Payment of Mediclaim Premium out of taxable Income:- The amount must have been paid using the taxpayer’s income chargeable to tax.

6. In addition to deduction u/s, 80C, 80CC and 80CCD,:- This is an additional deduction available which do not include deduction u/s 80C, 80CCC and 80CCD for which overall limit is is Rs. 1,00,000.

7. Partly contribution: If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed but amount should be paid directly to insurance company and paid through mode other than by cash.

8. Mode of payment: The premium may be paid by any mode of payment other than cash. Note prior to 1st April 2009, premium payment was required to be done only by cheque. Credit card or other online payment mechanism where not allowed. Now all payment modes except cash payment are accepted.

9. Which Mediclaim Premium is allowed? : - Mediclaim premium paid under Medical insurance scheme of General Insurance Corporation approved by the Central Government, or any other insurer approved by the Insurance Regulatory & Development Authority (IRDA).

10. What is the amount of the deduction?
For Individual: Basic deduction: Mediclaim premium paid for Self, Spouse or dependant children. Maximum deduction Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year) and Mediclaim Insurance premium is paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.

Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

For HUF: Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

Senior citizen: means who is at least of 65 year of age or more at any time during the previous year.

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