Section 80-D – Deduction in respect of health insurance premia paid, etc.: IT Circular 20/2015

Section 80-D – Deduction in respect of health insurance premia paid, etc.: IT Circular 20/2015

This chapter is the part of 5.5 DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT [Click to view] of IT Circular 20/2015

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5.5.5 Deduction in respect of health insurance premia paid, etc. (Section 80D)

Section 80D provides for deduction available for health insurance premia paid, etc. which is calculated as under:

Sl No	Persons for whom payment made	Nature of payment	Mode of payment	Allowable Deduction (in Rs)
1	Employee or his family*	the whole of the amount paid to effect or to keep in force an insurance on the health of the employee or his family or              any contribution made to the CGHS or such other scheme as may be notified by Central Government (Finance Act 2013)	any mode other than cash	Aggregate allowable is Rs 25,000/ (Rs 30000/- for senior and very senior citizen)
2		any payment on account of preventive health check-up of the employee or family, [restricted to Rs 5000/-; cash payment allowed here]	any mode including cash
3		Whole of the amount paid on account of medical expenditure incurred on health of a very senior citizen and no amount has been paid to effect of keep in force an insurance on the health of such person	any mode other than cash	Aggregate allowable is Rs 30,000/
4	Parent or Parents of employee*	the whole of the amount paid to effect or keep in force an insurance on the health of the parent or parents of the employee	any mode other than cash	Aggregate allowable is Rs 25,000/ (Rs 30000/-
5		any payment made on account of preventive health check-up of the parent or parents of the employee [restricted to Rs 5000/-; cash payment allowed here]	any mode including cash	for senior and very senior citizen)
6		Whole of the amount paid on account of medical expenditure incurred on health of a very senior citizen and no amount has been paid to effect of keep in force an insurance on the health of such person	any mode other than cash	Aggregate allowable is Rs 30,000/

*Aggregate of the sum allowable as deduction under Sl No 1, 2 & 3 and 4, 5 &6 above shall not exceed Rs 30000/-

Here

i) “family” means the spouse and dependent children of the employee.

ii) Senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

iii) Very senior citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year

The DDO must ensure that the medical insurance referred to above shall be in accordance with a scheme made in this behalf by-

(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalization) Act, 1972 and approved by the Central Government in this behalf; or

(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999.