Deduction u/s 80D

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Vineet Gupta (Querist)
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30 December 2010 Plz advise,
A Family health insurance premium covering son and parents amounts to 25000.(single policy). But break up(As calculated for Premium amount purposes by Agent) Son 8000 and parents 17000. Amount paid by and proposer is son
All three below 65yrs.
What will be the deduction permissible under 80D?
and will happen to service tax component?

chetan soni

chetan soni (Expert)
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30 December 2010 The deduction u/s 80D is available on the basis of mediclaim certificate issued by the issurer company.

The amount specified by the sec.80D is Rs. 15K & additional 5K is allowed if the policy covers the parents whose age is above 65years. Now in your case the policy amount is Rs. 25K & parents are below 65years hence the allowed amount is Rs. 15K.
Second question is for service tax component, this will be allowed if the service tax value is covered in the certificate value. Generally all insurance company mentioned the mediclaim amount along with interest.
But in your case you should not worry for service tax component as total premium paid is more than allowed amount i.e. 15K.

Hence the deduction will be restricted to Rs. 15K.