Can solely proposer get IT profit on mediclaim coverage?

My daughter took a mediclaim coverage for me and my spouse round 14 years again, and has been repeatedly paying premium for this coverage. I’m a greater than 70 years previous and a retired authorities worker, whereas my spouse is above 65. My daughter finds it tough to pay a big sum as premium as she is now unemployed. However, I want to proceed the coverage. I want to know whether or not I will pay the premium quantity for this coverage, which covers me and my spouse and declare the earnings tax advantages obtainable beneath Section 80C?

—Jeyaseelan Devadoss

Medical Insurance premium might be claimed as a deduction beneath Section 80D and never 80C. The tax profit beneath Section 80D is over and above the ₹1.5 lakh deductions obtainable beneath Section 80C.

The new tax regime is the default tax regime for FY 2023-24 onwards and deductions beneath Chapter VI A i.e. 80C, 80D, and many others. is not going to be obtainable beneath the brand new tax regime. If you go for previous tax regime then, you may declare deductions beneath Chapter VI A of the Income Tax Act. Section 80D of the Income Tax Act lays down that the deduction for medical insurance coverage premium might be claimed by a person who pays the premium for self, partner, dependent youngsters, mother and father. There isn’t any point out of proposer or coverage proprietor within the Act. It solely mentions that in the event you “pay the premium” for a coverage for self, partner, dependent youngsters, mother and father you may declare the deduction.

The most deduction obtainable for self, partner and dependent youngsters is ₹25,000. The restrict will increase to ₹50,000 in case of senior residents. Similarly, if you’re paying medical insurance coverage premium for fogeys’ coverage, you may declare a further good thing about ₹25,000 for dad or mum’s medical insurance coverage coverage. In case mother and father are senior residents, then the restrict will increase to ₹50,000. To qualify for the deduction, the premium should be paid by way of a non-cash methodology. Further, you may as well declare a tax deduction of ₹5,000 every year on preventive healthcare for your loved ones.

Here, you’re paying the medical insurance coverage premium for your self and partner’s coverage and you’re a senior citizen. Thus, it is possible for you to to assert the deduction of most ₹50,000 for this coverage.

Nitesh Buddhadev is a Mumbai-based chartered accountant.

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Updated: 13 Sep 2023, 10:35 PM IST

Topics