Income Tax Benefits – Deduction in respect of health insurance premia under Section 80D of Income-tax Act, 1961-2018
Section – 80D, Income-tax Act, 1961-2018
Deduction in respect of health insurance premia.
80D. (1) In computing the total income of an
assessee, being an individual or a Hindu undivided family, there shall
be deducted such sum, as specified in sub-section (2) or sub-section
(3), payment of which is made by any mode as specified in sub-section
(2B), in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred
to in sub-section (1) shall be the aggregate of the following, namely:—
(a) the whole of
the amount paid to effect or to keep in force an insurance on the health
of the assessee or his family or any contribution made to the Central
Government Health Scheme or such other scheme as may be notified by the
Central Government in this behalf or any payment made on account of
preventive health check-up of the assessee or his family as does not
exceed in the aggregate twenty-five thousand rupees; and*
(b) the whole of
the amount paid to effect or to keep in force an insurance on the health
of the parent or parents of the assessee or any payment made on account
of preventive health check-up of the parent or parents of the assessee
as does not exceed in the aggregate twenty-five thousand rupees;
(c) the whole of
the amount paid on account of medical expenditure incurred on the health
of the assessee or any member of his family as does not exceed in the
aggregate 27[thirty]thousand rupees; and
(d) the whole of
the amount paid on account of medical expenditure incurred on the health
of any parent of the assessee, as does not exceed in the aggregate 27[thirty] thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a 27a [very] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed 27[thirty]thousand rupees.
Explanation.—For the purposes of clause (a), “family” means the spouse and dependant children of the assessee.
(2A) Where the amounts referred to in clauses (a) and (b)
of sub-section (2) are paid on account of preventive health check-up,
the deduction for such amounts shall be allowed to the extent it does
not exceed in the aggregate five thousand rupees.
(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—
(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(ii) any mode other than cash in all other cases not falling under clause (i).
(3) Where the assessee is a Hindu undivided family, the
sum referred to in sub-section (1), shall be the aggregate of the
following, namely:—
(a) whole of the
amount paid to effect or to keep in force an insurance on the health of
any member of that Hindu undivided family as does not exceed in the
aggregate twenty-five thousand rupees; and
(b) the whole of
the amount paid on account of medical expenditure incurred on the health
of any member of the Hindu undivided family as does not exceed in the
aggregate 28[thirty] thousand rupees:
Provided that the amount referred to in clause (b) is paid in respect of a 28a[very] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (b) shall not exceed 28[thirty] thousand rupees.
(4) Where the sum specified in clause (a) or clause (b) of sub-section (2) or clause (a)
of sub-section (3) is paid to effect or keep in force an insurance on
the health of any person specified therein, and who is a senior
citizen, 29[or a very senior citizen,] the provisions of this section shall have effect as if for the words “twenty-five thousand rupees”, the words “30[thirty] thousand rupees” had been substituted.
Explanation.— [***]
Following sub-section (4A) shall be inserted after sub-section (4) of section 80D by the Finance Act, 2018, w.e.f. 1-4-2019 :
(4A) Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a)
of sub-section (3) is paid in lump sum in the previous year to effect
or to keep in force an insurance on the health of any person specified
therein for more than a year, then, subject to the provisions of this
section, there shall be allowed for each of the relevant previous year, a
deduction equal to the appropriate fraction of the amount.
Explanation.—For the purposes of this sub-section,—
(i)
“appropriate fraction” means the fraction, the numerator of which is one
and the denominator of which is the total number of relevant previous
years;
(ii) “relevant
previous year” means the previous year beginning with the previous year
in which such amount is paid and the subsequent previous year or years
during which the insurance shall have effect or be in force.
(5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by—
(a) the General
Insurance Corporation of India formed under section 9 of the General
Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved
by the Central Government in this behalf; or
(b) any other
insurer and approved by the Insurance Regulatory and Development
Authority established under sub-section (1) of section 3 of the
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).
Explanation.—For the purposes of this section,—
(i) “senior
citizen” means an individual resident in India who is of the age of
sixty years or more at any time during the relevant previous year;
31[(ii)
“very senior citizen” means an individual resident in India who is of
the age of eighty years or more at any time during the relevant previous
year.]
Source: Income Tax India Official website