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Section 80D and 80DD of Income Tax Act, 1961

Section 80D of Income Tax Act, 1961.

This section is related to Deduction from income for Medical insurance premium paid and Preventive health check up taken. 

Section 80D Applicability

Only Individual or HUF can claim deduction under Section 80D.

1. Medical Insurance

Maximum Deduction

An Individual can claim Maximum deduction of Rs. 25,000/- for the insurance of self, spouse and dependent children.

An additional deduction can be claimed on insurance of parents of Rs. 25,000/-, if they are below 60 and up to 50,000/- can be claimed if they are above 60.

An HUF can claim a maximum deduction of Rs. 25,000/- if the member insured is less than 60 years and up to 50,000/- can be claimed if the member insured is above 60.

Budget 2018 has introduced a new provision in which single premium health insurance can claim deduction subject to limitation of 25,000/- and 50,000/- as per above provisions. If the insurance has taken for more than one year, then deduction is limited to medical insurance premium divided by number of years of the policy restricted to 25,000/- and 50,000/- as per above provisions. 

2. Preventive Health Check-up

Maximum Deduction

If any payments has been made towards health check up of self, spouse and dependent children, deduction can be claimed up to Rs. 5,000/-

Section 80DD of Income Tax Act, 1961

This section is applicable to the dependant Resident Individual or HUF who is differently abled and is wholly dependent on the individual for support & maintenance.

Applicability

  1. This deduction is allowed to differently abled person and not for the person who has paid for maintenance.
  2. If the taxpayer has claimed deduction under section 80U, he cannot claim this deduction.
  3. Dependant for this deduction includes spouse, children, parents, brothers & sisters of the taxpayer and members in case of HUF.
  4. Disability of the dependant should not be less than 40%.

Maximum Deduction

  1. Rs. 75,000/- where disability is less than 80%.
  2. Rs. 1,25,000/- where disability is more than 80%.