Mediclaim Deduction – Limits for medical insurance and expenditure

Every individual or HUF can claim a deduction under Section 80D for their medical insurance which is taken from their total income in any given year. Not only can you take benefit by purchasing a health plan for yourself but also you can take advantage of buying the policy to cover your spouse, or your dependent children or parent. The best part is that it is over and above the deductions claimed under section 80C/CCC/CCD (i.e. ₹ 1,50,000).

 

Notes:

  1. Family includes individual, spouse of the individual and dependent children of the individual.
  2. Parents include father and mother (dependent or otherwise). Father-in-law and Mother-in-law are not included.
  3. The aggregate payment on account of preventive health check-up of self, spouse, dependent children, father and mother cannot exceed ₹ 5,000.
  4. The above payments except for payment on account of preventive health check-up should be made by any mode other than cash.
  5. “Senior Citizen” is a resident individual who is at least 60 years of age at any time during the previous year.
  6. In case of single premium health insurance policies having cover of more than one year, the aforesaid deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided.
  7. Medical bills on health of a person who is a senior citizen is considered, if Mediclaim insurance is not paid on the health of such person, up to ₹ 50,000, if payment is done by any other mode other than cash.


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