FAQ on Medical Insurance Premium deduction available under section 80D of Income Tax Act, 1961

FAQ on Medical Insurance PremiumI have paid medical insurance premium to ensure my brothers medical expenses. Can I claim exemption under section 80D of Income Tax Act, 1961?

No, benefit under section 80D of income tax act is only applicable to a medical insurance payment made to ensure your own life, life of your spouse, parents and dependent children. You can not claim income tax benefit for the expenses you incur towards medical insurance of your brother.

I have paid medical insurance premium for my parents who are senior citizen. How much deduction under section 80D of income tax act can be claimed?

For your parents you can claim a total income tax deduction of Rs. 20, 000. this deduction is available in addition to the deduction you are claiming for your own medical insurance payment.  

Total medical insurance premium paid by me is Rs. 35, 000. This total amount is paid to ensure my own life and life of my wife and three children. Can I claim deduction for Rs. 35, 000 as I am making payment for four peoples and my eligibility is Rs 60, 000 (15000*4).

Your eligibility is Rs. 15, 000 only assuming that you or your wife is not a senior citizen. If any one of you is a senior citizen or if both are senior citizen then additional deduction of Rs. 5, 000 is available. The deduction under section 80D is not per person. If you have paid anything for medical insurance premium to ensure your own life, your spouse’s life or any of your dependent children then the total amount available for deduction is Rs. 15, 000. if you have paid anything less than Rs. 15, 0000 then the lessor amount will be available as deduction.

During the financial year I have paid Rs. 10,500 as a medical insurance premium to endure my own life and my wife’s life. Can I claim a deduction of Rs. 15, 000 under section 80D of income tax act?

Deduction under section 80D is available for the amount you paid or the amount specified based on your eligibility which ever is lower. In your case the maximum amount specified for deduction of medical insurance premium is Rs. 15, 000 so your tax deduction should not exceed the maximum amount but if any amount paid less then the maximum amount then the lessor amount will be allowed as income tax deduction. In your case you are eligible for a income tax deduction of Rs. 10, 500.

What will happen if I have paid more than the available deduction towards medical insurance premium?

Even then you will be eligible for the maximum income tax deduction available under section 80D and not the amount that you spend on your medical insurance premium.

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