Some conditions that enable you to claim a tax deduction on the expenses incurred towards the medical treatment of family members
You can take a medical insurance plan for yourself, your spouse, parents or dependent children. Under Section 80D, you can claim a deduction up to Rs 15,000 for the premium paid. Mediclaim policies are offered by almost all insurance companies. Mediclaim policies provide insurance cover for the treatment of most ailments and hospitalisation. In addition to the basic cover, add-ons are available on payment of extra premium.
You should go through the coverage and exclusion clauses carefully. In some cases, pre-existing ailments are also covered on payment of an additional premium. The cover may be enhanced to ailments which are not normally covered also. Some insurance companies provide cover for day-care and annual medical checkups as well.
For senior citizens who are tax payers and 65 years of age or more, the limit now has been enhanced to Rs 20,000. The condition of dependency of parents has now been removed from this financial year. Thus, even if your parents are not dependent on you, you can claim a deduction after paying the premium for their health plans. However, the premium for health plans should always be paid through a cheque. That is, the tax benefit is not allowed if the premium is paid in cash.
In the case of an individual, the amount deductible includes any sum paid for the insurance of the assessee, spouse, dependent parents, and dependent children. The dependence of parents will have to be proved in order to claim the exemption by the assessee. Dependence will be evident in case the resources of the parents are not sufficient to support them. In case of a Hindu Undivided Family, the amount deductible includes any sum paid for the insurance of any member of the family.
In order to claim this deduction, the amount should be paid by cheque. Further, the amount should be paid in the relevant previous year. It should be paid out of the income chargeable to tax .The scheme of insurance should be approved by the General Insurance Corporation of India.
In case of dependents
Medical expenses of a dependent with a disability also qualify for tax benefits under Section 80DD. In this case, deductions up to Rs 50,000 can be claimed. A life insurance policy bought for the benefit of a physically challenged person is also eligible for this benefit up to Rs 50,000. In case the disability is severe, the claim can go up to Rs 75,000. However, to claim any deduction under this section, a certificate from a medical authority is mandatory.
In case of specified ailments
Deductions of expenses incurred on treatment of specified ailments can be claimed under Section 80DDB. The maximum amount of deduction allowed from the gross total income is restricted to Rs 40,000 (which goes up to Rs 60,000 if the age of the person treated is 65 years or more) on the condition that no medical reimbursement is received from any insurance company or employer for this amount. In order to claim this deduction, one has to submit Form 10-1 from a specialist doctor working in a government hospital, confirming the treatment.
You can take a medical insurance plan for yourself, your spouse, parents or dependent children. Under Section 80D, you can claim a deduction up to Rs 15,000 for the premium paid. Mediclaim policies are offered by almost all insurance companies. Mediclaim policies provide insurance cover for the treatment of most ailments and hospitalisation. In addition to the basic cover, add-ons are available on payment of extra premium.
You should go through the coverage and exclusion clauses carefully. In some cases, pre-existing ailments are also covered on payment of an additional premium. The cover may be enhanced to ailments which are not normally covered also. Some insurance companies provide cover for day-care and annual medical checkups as well.
For senior citizens who are tax payers and 65 years of age or more, the limit now has been enhanced to Rs 20,000. The condition of dependency of parents has now been removed from this financial year. Thus, even if your parents are not dependent on you, you can claim a deduction after paying the premium for their health plans. However, the premium for health plans should always be paid through a cheque. That is, the tax benefit is not allowed if the premium is paid in cash.
In the case of an individual, the amount deductible includes any sum paid for the insurance of the assessee, spouse, dependent parents, and dependent children. The dependence of parents will have to be proved in order to claim the exemption by the assessee. Dependence will be evident in case the resources of the parents are not sufficient to support them. In case of a Hindu Undivided Family, the amount deductible includes any sum paid for the insurance of any member of the family.
In order to claim this deduction, the amount should be paid by cheque. Further, the amount should be paid in the relevant previous year. It should be paid out of the income chargeable to tax .The scheme of insurance should be approved by the General Insurance Corporation of India.
In case of dependents
Medical expenses of a dependent with a disability also qualify for tax benefits under Section 80DD. In this case, deductions up to Rs 50,000 can be claimed. A life insurance policy bought for the benefit of a physically challenged person is also eligible for this benefit up to Rs 50,000. In case the disability is severe, the claim can go up to Rs 75,000. However, to claim any deduction under this section, a certificate from a medical authority is mandatory.
In case of specified ailments
Deductions of expenses incurred on treatment of specified ailments can be claimed under Section 80DDB. The maximum amount of deduction allowed from the gross total income is restricted to Rs 40,000 (which goes up to Rs 60,000 if the age of the person treated is 65 years or more) on the condition that no medical reimbursement is received from any insurance company or employer for this amount. In order to claim this deduction, one has to submit Form 10-1 from a specialist doctor working in a government hospital, confirming the treatment.
