Available Deduction - For individuals less than 65 years of age, amount of health insurance

premium paid or Rs. 15,000, whichever is lesser. For senior citizens above 65 years,
amount of health insurance premium paid or Rs. 20,000, whichever is lesser.

A further deduction of Rs 15,000 could be claimed, for buying health insurance policy for
your parents (Rs 20,000 if either of your parents is a senior citizen). This is irrespective of
whether theyre dependent on you or not. No deductions can be claimed for in-laws.

Scope of Deduction - Individual assesses can claim deduction for premiums paid towards
health insurance of self, spouse, parents and children.

For HUF assesses, premium paid for insuring the health of any member of the HUF, can be
used for deduction.

Key Factors to keep in mind
1. The premium may be paid by any mode of payment, other than cash.
2. The health insurance premium that you pay must be from the taxable income
applicable for the year you claim. Premiums should not be from gifts received by
you.
3. Part payment of premium is allowed. For example, suppose your parents contribute
50% of their health insurance premium and you pay the balance 50% of their
premium. In such a case, you could avail the deduction for the amount contributed
by you and your parents too could avail deduction for their contribution.

Section 80DD for Medical Treatment of Handicapped Dependents
If you are incurring expenditure for the treatment of your handicapped dependent, you
could claim a deduction under section 80DD.
Available Deduction - Rs 50000, or actual expenditure incurred, whichever is lesser. For
severe handicap conditions Rs. 1,00,000 is the deduction limit.

Scope of Deduction - Deduction can be claimed for dependent parents, spouse, children and
siblings. Dependents must not have claimed any deduction for their disability.

Deductions are permissible in either of the following cases.
a) Costs incurred for medical treatment, training or rehabilitation of a disabled dependent,
including amount spent for nursing.
b) Amount paid towards an insurance scheme for the maintenance of your disabled
dependent in case of your untimely death.

eaning of Disability- Disability means a person suffering from 40% or more of any of the
below disabilities. A severe disability condition is 80% or more of the disabilities.
a) Blindness and Vision problems
b) Leprosy-cured
c) Hearing impairment
d) Locomotor disability
e) Mental retardation or illness

Key factors
a) Individuals would need to produce a copy of the disability certificate as issued by the
central or state government medical board to claim deduction.
b) Insurance policy obtained must be in your name and should be a policy for life. It could
pay either an annuity or a lump sum amount for the benefit of the dependent on your
death.
c) If the disabled dependent predeceases you, the policy amount is returned to you, and
treated as income for the year in which you receive it, thus fully taxable in your hands.


ILCTION L[S So MIICLAIM POLICY
DeducLIon under secLIon 8oD Is uvuIIubIe Ior medIcuI cIuIm poIIcy By IndIvIduuI Ior IumIIy und HU Ior
LIeIr members . OLIer deLuIIs regurdIng 8oD und medIcuI Insurunce LIere under Is gIven beIow

1. Addition to section So C$ecLIon 8oD Is uvuIIubIe oLIer LIun 1ooooo deducLIon uvuIIubIe under 8oC
Ior IIIe Insurunce,ppI,gpI,LuILIon Iee,UP,House Ioun repuymenL eLc.
z. Insorer covered:%IIs deducLIon Is uvuIIubIe Ior medIcuI cIuIm poIIcy wIIcI sIouId be Irumed In LIIs
beIuII by
4 by GC(GeneruI Insurunce CorporuLIon) or by
4 uny oLIer Insurer buL upproved by RDA(nsurunce ReguIuLory DeveIopmenL uuLIorILy)
. Avuiluble to DeducLIon Is uvuIIubIe Lo

4 ndIvIduuI (resIdenL or non resIdenL ,ndIun CILIzen or IoreIgn cILIzen)
4 HU(HIndu undIvIded umIIy muy be resIdenL or non resIdenL)
q. Mode oI puyment:nsurunce PremIum sIouId be puId by uny mode oLIer LIun by CusI .Meuns II
Insurunce premIum Is puId by cusI LIen no deducLIon Is uvuIIubIe.BeIore AssessmenL yeur zoo8-oq ,onIy
puymenL by cIeque wus uIIowed under LIIs secLIon buL Irom Ay zoo8-oq onwurds LIe deducLIon Is
uIIowed by oLIer mode uIso IIke onIIne puymenL wIIcI Is now u duys Is very popuIur or by credIL curd Is
uIso uIIowed.
. Oot oI Income :%Ie umounL sIouId be puId ouL oI LIe Income cIurgeubIe Lo Lux.
6. Proposer oI the policy is not most:%Ie premIum Is Lo be puId Lo eIIecL or keep InIorce Insurunce
poIIcy ,LIere Is no condILIon LIuL ussessee sIouId be LIe proposer oI LIe poIIcy ,
;. Purtly contribotion Assessee cun purLIy conLrIbuLe LIe premIum umounL buL umounL sIouId be puId
dIrecLIy Lo Insurunce compuny und puId LIrougI mode oLIer LIun by cusI (see exumpIe)
8. Insorunce cover on?:IrsL deducLIon gIven beIow nsurunce PremIum muy be puId Ior medIcuI cIuIm
Insurunce poIIcy Ior ussessee IImseII or spouse or dependenL cIIIdren or uny combInuLIon oI LIree.
q. Addition Ior purents:$econd deducLIon gIven beIownsurunce premIum muy be puId Ior medIcuI cIuIm
Insurunce Ior ussessee purenLs (IuLIer or moLIer or Ior boLI)
1o. edoction opto qoooo:%IeoreLIcuIIy ,muxImum deducLIon cun be cIuImed Ior Rs qoooo.(deLuII us
gIven beIow)
Amoont OI dedoction %wo Lype oI DeducLIons ure uvuIIubIe Lo ndIvIduuIs under LIIs secLIon Irom
AssessmenL yeur zooq-1o
1. edoction on Medicul insorunce premiom puid Ior himselI,spoose,dependent children =Rs
1gooo muximom.
z. edoction on Medicul insorunce premiom puid Ior purents ,whether dependent on ussesee
or not =Rs 1gooo muximom
edoction to HLI: DeducLIon Lo HU Is uvuIIubIe on Insurunce premIum puId Ior poIIcy Luken Ior oI
uny member oI LIe HU


Addition dedoction Ior Resident Senior Citizen:n uddILIon Lo Lwo poInL ubove, uddILIonuI
deducLIon oI Rs ooo Is uvuIIubIe wIere ussessee or IIs spouse (wIIe or Iusbund) or dependenL purenLs or
uny member oI LIe IumIIy In cuse one und IuLIer or moLIer Is u resIdenL In ndIu und u senIor cILIzen In
cuse Lwo.And sume In LIe cuse oI HU ussessee II poIIcy Ius been Luken on member wIIcI Is senIor
cILIzen LIun uddILIonuI Rs oooJ- deducLIon Is uvuIIubIe uIso Lo HU.

Senior citizen meuns wIo Is uL IeusL oI 6 yeur oI uge or more uL uny LIme durIng LIe prevIous yeur.

Ixumple : An IndIvIduuI ussessee puys (LIrougI uny mode oLIer LIun by cusI) durIng LIe prevIous yeur
medIcuI Insurunce premIum us under
1. Rs 1zoooJ- Lo keep In Iorce un Insurunce poIIcy on IIs IeuILI und on IIs wIIe und dependenL cIIIdren
z. Rs 1;oooJ- Lo keep In Iorce un Insurunce poIIcy on LIe IeuILI oI IIs purenLs.
AccordIng Lo ubove provIsIons Ie wIII be uIIowed oI Rs z;oooJ-(1zoooJ- +1oooJ-) II neILIer oI IIs
purenLs Is senIor cILIzen .Iowever II uny oI IIs purenL Is u resIdenL senIor cILIzen ,Ie wIII be uIIowed u
deducLIon oI zqooo(1zooo+1;ooo) .wIeLIer LIe purenLs Is dependenL or noL Is noL u consIderuLIon Ior
decIdIng LIe deducLIon under secLIon 8oD(Irom ussessmenL yeur zooq-1o )(prevIous yeur zoo8-oq)

urLIer, In LIe ubove exumpIe ,II cosL oI Insurunce on LIe IeuILI oI LIe purenLs Is ooooJ- ouL oI wIIcI Rs
1;oooJ- Is puId (by uny non cusI mode) by LIe son und rs 1oooJ- by LIe IuLIer (wIo Is senIor cILIzen),
ouL oI LIeIr respecLIve LuxubIe Income ,LIe son geL LIe deducLIon oI Rs 1;oooJ- (In uddILIon Lo deducLIon
oI Rs 1zoooJ- Ior LIe medIcuI Insurunce on seII und IumIIy) und LIe IuLIer wIII geL deducLIon under
secLIon Rs 1oooJ-
(ExumpIe us gIven In Inunce AcL zoo8)


Reud more DEDUC%ON UJ$ 8oD MEDCAM POCY ] $MPE %AX NDA-%R ORM -%D$ RA%E
11-1z ILLpJJwww.sImpIeLuxIndIu.neLJzooqJo1JdeducLIon-us-8od-medIcIuIm-poIIcy.ILmI#Ixzz1dyII;Gvu

DeLuIIs on $ecLIon 8oD, 8oDD und 8oDDB
b MAN$HU on IERUARY :(, zo::
in %AX
AnoLIer posL Irom LIe $uggesL u %opIc puge, und LIIs one Is
ucLuuIIy wrILLen by my CA IrIend - GurpreeL $IngI. We`re
LryIng Lo coIIuboruLe und see II Ie cun unswer some oI LIe
LuxuLIon reIuLed quesLIons Iere on OneMInL, und wrILe some
urLIcIes on Lux us weII.
etuils oI Section So
Any umounL puId by un ndIvIduuI or HU Lo un nsurunce
compuny us MedIcuI nsurunce PremIum I.e. premIum puId In
respecL oI MedIcIuIm PoIIcy cun be cIuImed us deducLIon
under secLIon 8oD.
NoLe IIe nsurunce PremIum Is NOT covered under LIIs
cuLegory.
mporLunL poInLs
1.PremIum puId sIouId be In respecL oI MedIcIuIm nsurunce
poIIcy.
z.%Ie deducLIon Is uIso uvuIIubIe wIen LIe %uxpuyer mukes
uny conLrIbuLIon Lowurds CenLruI GovernmenL HeuILI
$cIeme.
.DeducLIon Is uvuIIubIe onIy Lo ndIvIduuIs und HU`s
(HIndu UndIvIded umIIy). CorporuLes or PurLnersIIp IIrms
cunnoL cIuIm LIIs deducLIon.
q.DeducLIon Is noL uIIowed wIen LIe premIum Is puId by
cusI. n oLIer words, LIe deducLIon wIII be uIIowed wIen
LIe premIum Is puId by modes oLIer LIun cusI I.e. cIeque
or DD.
.DeducLIon Is uIIowed In respecL oI IoIIowIng persons
1axpayer Insured erson
lndlvldual Cn Lhe healLh of Laxpayer
hlmself/herself spouse parenLs
dependenL chlldren of Laxpayer
Plndu undlvlded lamlly (Pul) Cn Lhe healLh of any of Lhe member of
Lhe famlly
Amoont exempted onder Section So
eusL oI LIe IoIIowIng Is uIIowed Lo be deducLed Irom Gross
%oLuI ncome oI LIe %uxpuyer Ior 8oD
u. AcLuuI MedIcIuIm nsurunce PremIum puId
b. Rs. 1,ooo
n cuse LIe MedIcIuIm nsurunce PremIum puId Is Ior u $enIor
CILIzen (person ubove 6 yeurs), IeusL oI LIe IoIIowIng Is
uIIowed us deducLIon
u. AcLuuI MedIcIuIm nsurunce PremIum puId
b. Rs. zo,ooo
etuils on Section So
%IIs Is u deducLIon In respecL oI muInLenunce IncIudIng
medIcuI LreuLmenL oI IundIcupped dependenL LIuL Is u person
wILI u dIsubIIILy.
L Is uvuIIubIe Lo IndIvIduuIs und HUs (HIndu UndIvIded
umIIIes).
n LIe cuse oI un IndIvIduuI LIe deducLIon Is uvuIIubIe Lo
spouse, cIIIdren, purenLs broLIers or sIsLers oI LIe IndIvIduuI.
n LIe cuse oI HU LIe deducLIon Is uvuIIubIe Lo uny member
oI LIe HU.
%Ie second condILIon Is LIuL LIe dIsubIed person sIouId be
wIoIIy or muInIy dependenL on LIe person seekIng LIe
deducLIon Ior LIeIr supporL und muInLenunce.
%Ie dependenL sIouId Iuve u dIsubIIILy oI uL IeusL qo%, und
Ior cIuImIng LIe deducLIon LIe ussessee Ius Lo IurnIsI u copy
oI cerLIIIcuLe Issued by LIe medIcuI uuLIorILy
%Iere ure Lwo wuys In wIIcI LIe expenses couId Iuve been
Incurred
CpLlon 1 CpLlon 2
1he Laxpayer has lncurred an
expendlLure for Lhe medlcal LreaLmenL
Lralnlng nurslng and rehablllLaLlon of
Lhe dependenL
1he Laxpayer has pald/deposlLed under
any scheme framed ln Lhls behalf by
Lhe LlC or any oLher lnsurer or Lhe
admlnlsLraLor or speclfled company
and approved by Lhe 8oard ln Lhls
behalf for Lhe supporL/malnLenance of
Lhe dependenL
Amoont oI dedoction eligible onder Section So:
1. Ixed deducLIon oI Rs o,oooJ- Is uIIowed IrrespecLIve oI
umounLs Incurred In OpLIon 1Jz
z. DeducLIon oI Rs. 1,oo,oooJ- Is uIIowed In cuse wIere LIe
dependenL Ius LIe dIsubIIILy oI more LIun 8o%
I LIe dependenL predeceuses LIe ndIvIduuIJHU, un umounL
equuI Lo LIe umounL puId sIuII be deemed Lo be LIe Income oI
LIe IndIvIduuIJHU und wIII be cIurgeubIe Lo Lux
etuils on Section SoB
%IIs deducLIon Is In respecL oI medIcuI LreuLmenL oI u
specIIIed dIseuse or uIImenL us prescrIbed by LIe Bourd.
8oDDB deducLIons ure uIso uvuIIubIe Lo IndIvIduuIs or HUs
und ure uvuIIubIe Ior expendILure Incurred In respecL oI
ussessee IImseII or IIs dependenL spouse, cIIIdren, purenLs,
broLIersJsIsLers.
n order Lo geL 8oDDB deducLIon LIe ussessee Ius Lo submIL u
cerLIIIcuLe In LIe prescrIbed Iorm Irom u neuroIogIsL,
oncoIogIsL, uroIogIsL, IuemoLoIogIsL, ImmunoIogIsL or sucI
oLIer specIuIIsL us prescrIbed workIng In u governmenL
IospILuI.