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Calculation Under Section 80D

Calculation Under Section 80D

People love the people near them and care about them. And for that reason, people mostly take the medical insurance for the loved ones to keep them more safe and secure. The medical insurance can cover the cost of the expenses incurred on the treatment of the key person. For the medical insurance, the person has to pay the premium on the yearly basis. The government understand these sentiments of the public and allow them for the deduction for the expenses. The calculation under this section is pretty much confusing for the normal taxpayers. Under this section, the taxpayer can claim the deduction for the expenses occurred on the Self, Spouse Children, and Parents. There are some further conditions for the availing of the deductions as discussed under section 80D

Let us discuss the Calculation Under Section 80D with the help of some examples:

Example 1:

Following are the expenses incurred for medical insurance premium:

Medical insurance premium for Family Protection Plan (Self, Spouse, and one dependent Child) – Rs. 20,000

Check up Fees paid (Self) – Rs. 10,000

Premium Paid for the Medical insurance(Parents) – Rs. 27,000

Calculate the Deduction allowed in the following two conditions:

  1. Parent of the taxpayer is 56 years old (Not a Senior Citizen).
  2. Parent of the taxpayer is 65 years old (Senior Citizen).
Answer:
  1. When the parent of the taxpayer is not a Senior Citizen:
Particular Amount Paid Deduction Available
Medical insurance premium(Self, Spouse, and Child) 20,000 20,000
Check up Fees(Self) 10,000 5,000
Medical Insurance premium(Parent) 27,000 25,000
Total available Deduction 50,000

 

The Maximum Deduction Available to the Individual for Self, spouse, and Child is 25,000. 

Further, the deduction is allowed for the parent u/s 80D which is limited to 25,000 (If not Senior Citizen).

2. When the parent of the taxpayer is a Senior Citizen:

Particular Amount Paid Deduction Available
Medical insurance premium(Self, Spouse, and Child) 20,000 20,000
Check up Fees(Self) 10,000 5,000
Medical Insurance premium(Parent) 27,000 27,000
Total available Deduction 52,000

 

The Maximum Deduction Available to the Individual for Self, spouse, and Child is 25,000. 

Further, the deduction is allowed for the parent u/s 80D which is limited to 30,000 (If Senior Citizen).

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Profile photo of Neeraj Rohilla Neeraj Rohilla

New Delhi, India

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