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 Rs. |
Additional Deduction for parents of the Individual whether dependent or not Rs. |
Total |
| General Deduction | 15,000 | 15,000 | 30,000 |
| Additional Deduction if one of the insured is Senior Citizen |
5,000 |
5,000 |
10,000 |
| 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
