Wednesday, April 29, 2009

Section 80D

Section 80D has been amended w.e.f AY 2009-10 -

An assessee is entitled to a deduction of Rs. 15000 in respect of medical premia paid on the health of himself, his spouse and children. If any of them is a senior citizen, then he shall be entitled to a mximum deduction of Rs. 20000/- as a whole.

In addition thereto, if he pays insurance premia on the health of his parents, whether dependant or not, he will be entitled to additional deduction of Rs. 15000/- (senior citizen - Rs. 20000/-).

To sum up, the assessee is entitled to maximum deduction of Rs. 30000 if he pays premium on the health of his parents as well on health of his wife and children. the deduction shall be max Rs. 40000 if his parents are senior citizen and either he or his spouse is a senior citizen.

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