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Expenditure in medical insurance and section 80d

B (Engin) (205 Points)

03 July 2012

1. Is the expenditure on medical insurance exempt of tax?

2. Does it fall under section 80 D?

3. For section 80 C the upper limit is Rs. 100000. What is the upper limit for section 80 D?

4. Is the expenditure under section 80 D can be claimed for tax saving over section 80C?

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5 Replies

Neha sharma (-) (1257 Points)
Replied 03 July 2012

Expenditure incurred on Payment of Medical Insurance Premium is exempt to a certain limit under Section 80D. The amount of deduction allowed u/s 80D is over and above the deduction allowed u/s 80C. The Deduction allowed for payment of medical insurance premium is as follows:-

Paid for Insuring Self/Spouse/ Assessee - Rs. 15000 p.a.
Paid for Insuring Parents:- Rs. 15,000

However in case the Assessee/Spouse/Children/Parents are Senior Citizens, the above figure of Rs. 15000 shall be replaced by Rs. 20,000

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Sonu Kumar (Account Manager) (665 Points)
Replied 03 July 2012

1. Yes it is Exempt.

2. Yes

3. 15000 and 20000

4. Yes

Chandrashekar (Chartered Accountant) (32 Points)
Replied 10 October 2012

Originally posted by : B
	1. Is the expenditure on medical insurance exempt of tax? 2. Does it fall under section 80 D? 3. For section 80 C the upper limit is Rs. 100000. What is the upper limit for section 80 D? 4. Is the expenditure under section 80 D can be claimed for tax saving over section 80C?

As per my knowledge,

1.& 2. Yes the expenses on medical insurance is exempt from tax and is governed by sec 80D, provided the medical insurance is paid by cheque.

3. For 80D, as rightly pointed out by others its:

Self/spouse & child - Rs.15000
Self/spouse & child + Parents - Rs.30000(Rs.15000 + Rs. 15000)
(if either or both are senior citizens then replace Rs.15000 by Rs.20000

4. Sec 80C and Sec 80D are two different sections. and deduction under one section is mutually exclusive of other.

Kethki Narayan (Owner) (59 Points)
Replied 26 November 2012

Yes, expenditure on medical insurance is exempt on tax. Medical insurance is exempt to a certain limits under section 80D. The qualifying amounts under Section 80D is upto Rs. 15,000. However, a higher amount of upto Rs. 20,000 is permitted if the person, for whose health insurance premium was paid, was resident and aged 65 years or more at any time during the financial year in which the premium was paid.

Kethki Narayan (Owner) (59 Points)
Replied 26 November 2012

Yes, expenditure on medical insurance is exempt on tax.
Medical insurance is exempt to a certain limits under section 80D.
The qualifying amounts under Section 80D is upto Rs. 15,000. However, a higher amount of upto Rs. 20,000 is permitted if the person, for whose health insurance premium was paid, was resident and aged 65 years or more at any time during the financial year in which the premium was paid.