�E-MODULE ON�DEDUCTIONS OUT OF GROSS TOTAL INCOME� (CHAPTER VI-A OF INCOME TAX ACT, 1961)�PART 2�

Submitted by:

Mrs. Binoo Gupta

Associate Professor

P.G. Deptt. Of Commerce & Management

Hans Raj Mahila Maha Vidyalaya,Jalandhar

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DEDUCTION U/S 80

DEDUCTION IN RESPECT OF MEDICAL INSURANCE PREMIA, PREVENTIVE HEALTH CHECK UP �[SECTION 80D]

• allowed to individuals and HUFs
• health insurance premium is paid during the previous year out of income chargeable to tax and it is paid by any mode other than cash.
• The full concept of medical insurance has been explained under:
• Part I. Medical Insurance Policy or Policies of individual, spouse and dependent children and contribution made to CGHS
• Least of 2 amounts shall be allowed as deduction :

(i) Actual premium deposited in any mode other than cash regarding medical insurance policy or policies of assessee, his/her spouse and all dependent children put together and preventive health check up amount upto Rs. 5,000 only and contribution made to CGHS.

• OR
• (ii) Rs. 25,000

(in case of senior citizen ` 50,000)

SECTION 80D (CONTD.)

Part II. Medical Insurance Policy or Policies of parent or parents

Least of 2 amounts shall be allowed as deduction :

(i) Actual premium deposited in any mode other than cash regarding medical insurance policies of parent/parents and preventive health check-up. Parents may or may not be dependent upon the assessee.

OR

(ii) Rs. 25,000 (in case of senior citizen Rs. 50,000).

Part III. Medical Insurance Policy taken by H.U.F.

In case of H.U.F, deduction under section 80D shall be the amount of medical insurance premium paid on the health of any member of H.U.F. as does not exceed in the aggregate Rs. 25,000 (50,000 in case of senior citizen).

Part IV. Medical Expenditure of senior citizen [Age 60 years or above]

In case a senior citizen has not got health insurance coverage (sometimes insurance companies do not provide such coverage to senior citizens), a deduction upto a maximum of Rs. 50,000 shall be allowed

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DEDUCTION FOR MAINTENANCE INCLUDING MEDICAL TREATMENT OF ADEPENDENT THAT IS PERSON WITH DISABILITY [SECTION 80DD]

(i) Eligible assessee: This deduction is allowed to an individual who is resident of India or HUF.

(ii) Rate of Deduction: (i) The assessee shall be allowed a fixed deduction of a sum of Rs. 75,000 from his gross total income in respect of the previous year. Where such dependent is a person with severe disability the deduction will be allowed for Rs. 1,25,000.

(iii) Conditions

(a) The deduction is allowed if they have incurred :

(i) Any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability or.

(ii) Paid or deposited any amount under a schedule framed in this behalf by the Life Insurance Corporation or any other insurer or the administrator of UTI or the specified company for the maintenance of a dependent being a person with disability.

(b) The scheme as referred above provides for payment of annuity or lump sum amount

DEDUCTION IN RESPECT OF MEDICAL TREATMENT, ETC. [SECTION 80DDB]�

1. Eligible assessee: This deduction is allowed to an individual or HUF who is resident in India only.

(ii) Conditions

(a) The assessee has actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board.

(b) The expenditure must be incurred for himself or a dependent, in case the assessee is an individual.

(c) The expenditure may be incurred for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family.

(iii) Rate of deduction: (a) For a ‘Non-senior patient’ (Age below 60 years)

Amount actually incurred ; or

a sum of Rs. 40,000, whichever is less, in respect of that previous year in which such amount was actually paid.

(b) For a ‘Senior citizen’ (Age 60 years or above)

Where the amount actually paid is in respect of the assessee or his dependent or any member of a Hindu undivided family of the assessee and who is a senior citizen, the deduction under this section shall be allowed for Rs. 1,00,000.

“Senior citizen” means an individual resident, in India who is of the age of sixty years or more at any time during the relevant previous year.

Specified diseases covered u/s 80DDB

The deduction under this section is available only for expenditures incurred for medical treatment of specified diseases. All specified diseases for which this deduction can be claimed are mentioned in the Rule - 11DD in the Income Tax Rules. These diseases, as per current laws, are as follows:

a) Malignant Cancers;

b) Full-Blown Acquired Immuno-Deficiency Syndrome (AIDS);

c) Chronic Renal failure;

d)Hematological disorders - (i) Hemophilia and (ii) Thalassaemia�e) In case of the below mentioned Neurological diseases where the disability level has been certified to be of 40 per cent and above:�(i) Dementia;�(ii) Dystonia Musculorum Deformans;�(iii) Motor Neuron Disease�(iv) Ataxia;�(v) Chorea;�(vi) Hemiballismus;�(vii) Aphasia;�(viii) Parkinsons Disease�

COMPARISON

Schedule 80D

Deductions

END OF PART 2