Deductions under Chapter VI-A (sec 80D)

7 Apr    Tax Issue

Under this section, deduction of up to Rs 40,000 can be claimed in respect of premium paid by cheque towards health insurance policy. Such premium can be paid towards health insurance of spouse, dependent parents as well as dependent children. As per following table:

ü      Medical Insurance Premium (sec 80D)

ü      Medical Insurance Premium for parents (sec 80D)

On whose life health Insurance Policy is taken Individual taxpayer, his/her spouse, and dependent children
Additional Deduction for parents of the Individual whether dependent or not
General Deduction 15,000 15,000 30,000
Additional Deduction if one of the insured is Senior Citizen




Total 20,000 20,000 40,000

Medical Insurance (such as Mediclaim) premium is exempt up to Rs.15,000/- per year for self, spouse & dependent children. An additional Rs.15,000/- is exempt towards premium for parents (even if they are not dependent). If the parent(s) are above 65 years of age, an extra Rs.5,000/- can be claimed

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