Section 80D of Income Tax Act AY 2016-17 Analysis

Section 80D Medical Insurance Deduction AY 2016-17 17-18Deduction for Medical Insurance under section 80D of Income Tax Act was amended last year. As the Medical Costs are drastically increasing across the country, there is every need to increase the Deduction limit u/s 80D of Income Tax Act. All Payments towards Medical Insurance Premiums are provided in this section.

Recently a amendment is brought where, Super Senior Citizens can now claim deduction u/s 80D for Medical Expenses, up to Rs.30,000.

Introduction to Section 80D

An Individual or a HUF are eligible for Deduction under this section. Payments made towards Medical Insurance Premium are allowed as a Deduction under section 80D. This Deduction is exclusive of the deduction allowed under section 80C.

Conditions for Deduction u/s 80D

The Deduction under section 80C is allowed bsed on the following criteria:

Assessee Payment Made For
Individual Insurance Premium paid for himself, Spouse, Dependent Parents and Dependent Children
HUF Medical Premiums paid for any Member of the HUF

 

Section 80D Deduction Limit AY 2016-17

The Deduction limit available under section 80D can be divided into three categories. This is explained below:

Assessee Detail Payment Details for Medical Premium Max Deduction limit u/s 80D
Deduction for Assessee & Family Deduction for Parents
Assessee and Family are below 60 years of age Rs. 15,000 Rs. 15,000 Rs. 30,000
Assessee below 60yrs – parents above 60yrs Rs. 15,000 Rs. 20,000 Rs. 35,000
Assessee and Assessee parents age is greater than 60yrs Rs. 20,000 Rs. 20,000 Rs. 40,000

 

Deduction for Preventive Health Checkup

The Income Tax Act, 1961 allows a deduction u/s 80D, up to Rs.5,000, for any expenditure incurred on account of any preventive health check-up for the Assessee or on the family.


80D Deduction for HUF

In the case of a HUF, deduction is allowed under this section in respect of premium paid to insure the health of any member of the family. The maximum deduction available to a HUF under section 80D would be Rs.25,000 and in case any member is a senior citizen, Rs.30,000.

Section 80D deduction for HUF Pre-emptive checkup

Further, the amount paid on account of medical expenditure incurred on the health of any member(s) of a family who is a very senior citizen would qualify for deduction subject to a maximum of Rs.30,000 provided no amount has been paid to effect or keep in force any insurance on the health of such person or persons.

Updated: April 14, 2018 — 5:41 pm

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