Tax Benefits on Mediclaim Health Insurance Premium

  • Additional deduction of Rs 15,000 under Section 80D is allowed to an individual who pays medical insurance premium for his/ her parent or parents.
  • Any Premium which is paid for medical insurance that has been taken on the health of the assessee, his spouse, dependent parents or dependent children, is allowed as a deduction, subject to a ceiling of Rs 10,000.
  • Where any premium is paid for medical insurance for a senior citizen, an enhanced deduction of Rs 15,000 is allowed. The deduction is available only if the premium is paid by cheque.
  • INSERT (AY 2008-09) Under section 80D, the deduction has been increased to Rs 15,000 and for senior citizen it is now Rs 20,000.
Deduction under this section is available to an individual who:
  • Incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant or deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme
  • A deduction of Rs 50,000 is available. Where the dependent is with a severe disability, a deduction of Rs 1,00,000 is allowed. (As per AY 2009-10)
  • If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.
  • An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed.
  • The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependent on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.
  • This deduction is also available to Hindu Undivided Families (HUF).
  • An individual, resident in India spending any amount for the medical treatment of specified diseases affecting him or his spouse, children, parents, brothers and sisters and who are dependent on him, will be eligible for a deduction of the amount actually spent or Rs 40,000, whichever is less.
  • Note - For the complete list of disease specified, refer to Rule 11DD of the Income Tax Rules.
  • For any amount spent on the treatment of a dependent senior citizen an individual is eligible for a deduction of the amount spent or Rs 60,000, whichever is less is available.
  • The individual should furnish a certificate in Form 10-I with the return of income issued by a specialist working in a government hospital.
  • If any amount of medical expenditure is borne by the employer or is reimbursed under an insurance scheme, the eligibility of the deduction is the reduction to that extent. This deduction is also available to Hindu Undivided Families (HUF).
 
Please Note:
  • Insurance customers should go through the health insurance plan details to learn whether it is eligible to avail tax benefits.
  • To be eligible to avail tax benefit on mediclaim insurance online customers should use the cheque payment option.
 
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