Wednesday, February 17, 2010

Deduction u/s 80 D (Health Insurance Premia)

Friends

Clarity regarding 80 D is that it is a deduction which is extra from 80C. I mean to say if you have completed your saving upto 1 lakh for deduction u/s 80C. Then insurance covers health helps you to save income tax. Simple insurance or Life insured insurance or Accidental Insurance premium is part of 1 lakh u/s 80C.

Meaning of Family = Spouse and Dependant children of the assessee.
While computing income of an assesses as individual or HUF, any payment made whether in cash or any other mode in the financial year out of his taxable income for the health of assesses/individual/HUF/any member of HUF or his family is deductable u/s 80 D upto a limit of Rs. 15,000/- (Fifteen thousand only).

Deduction u/s 80D for Senior Citizen
When premium is paid for the health of senior citizen(Resident in India whose age => 65 years) deduction amount u/s 80D is Rs. 20,000/- instead of Rs. 15,000/-

Age of senior citizen will be counted at any time in the financial year.



New Income Tax Rates for F.Y. 2009-10 (Click Here)


Calculate your Income Tax on your income (On Line)

Intense Debate Comments