Section 80D limit increased to Rs 50,000 for senior citizens


Section 80D limit increased to Rs 50,000 for senior citizens

  • Currently, an individual taxpayer can claim deduction of up to Rs. 30,000 in respect of payment made by him for the medical insurance for himself, his spouse or children.
  • He is allowed to claim additional deduction of Rs. 25,000 for the payment made for the medical insurance policy for his parents.
  • The deduction of Rs. 25,000 is increased to Rs. 30,000 each if the insured persons are senior citizen.

This limit is proposed to be increased to Rs. 50,000 from Rs. 30,000. In nutshell, an individual taxpayer can claim deduction of up to Rs. 1 lakh under Section 80D if he or his family members and his parents are 60 years or above.

The bare text of the memorandum is mentioned below:

Deductions available to senior citizens in respect of health insurance premium and medical treatment
Section 80D, inter-alia, provides that a deduction upto Rs 30,000/- shall be allowed to an assessee, being an individual or a Hindu undivided family, in respect of payments towards annual premium on health insurance policy, or preventive health check-up, of a senior citizen, or medical expenditure in respect of very senior citzen.
It is proposed to amend section 80D so as to raise this monetary limit of deduction from Rs 30,000/- to Rs 50,000/-.
In case of single premium health insurance policies having cover of more than one year, it is proposed that the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit. .
These amendments will take effect, from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

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