There is some good news on the Medical Insurance Premium front for the Financial Year 2009-10. Where earlier you could claim a maximum deduction (under Section 80D of the Income Tax Act )of Rs.15,000 for medical insurance premium paid for self (the taxpayer), spouse, dependent children and parents combined; now you can claim up to Rs.15,000 for self, spouse and dependent and another Rs.15,000 separately for parents. And if your parents are senior citizens, this limit is Rs.20,000. This was introduced in FY 2008-09.
“I am 67 years old and working. My parents are still around. Do I get the Rs.20,000 limit each for myself and my parents?”
The answer is yes, although this is a rare scenario.
A couple of conditions need to be satisfied to avail of this benefit:
1. The premium amount should not be paid by cash.
2. The insurance policy must be from any of the following companies:
a) General Insurance Corporation of India in a Scheme approved by Central Government.
b) Any other Insurance Company in a Scheme approved by Insurance Regulatory & Development Authority.
Note that the limits are also applicable to Hindu Undivided Families (HUF), when the health of any of its members is insured. When the member insured is 65 or above, the limit increases to Rs.20,000. For the literally inclined, from the Financial Year (2008-09) onwards, the deduction for medical insurance premium is to be termed as deduction for Health Insurance Premium. The name-change, however, will not have any bearing on how the scheme operates.
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Nice blog
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