Mediclaim policies - Section 80 D of the Income Tax Act

[TarunVir]

Hi All , I have two mediclaim policies to cover my family of 4. Details of the family and premium paid is below -

For self (age 40 years) - Rs. 12,000
For spouse (age 36 years) - Rs. 10,000
For father (age 68 years) - Rs. 17,000
For dependent mother-in-law (age 66 years) - Rs. 15,000

Could you please let me know -
1 - Is all the premium paid is exemped under section 80D?
2 - If Not. Please tell me what amount of deduction allowed under Section 80 D of the Income Tax Act on the above paid premium?

[Taxman]

You had paid total premium of Rs. 22,000 for yourself and your spouse. Since neither of you are senior citizen, basic deduction under Section 80D is Rs. 15,000 (Actual premium paid Rs. 22,000 or Rs.15,000 whichever is less).

You have also paid Rs. 17,000 for your father mediclaim premium, for which you are eligible for additional deduction. Since your father is a senior citizen, deduction under Section 80D is for Rs. 17,000 (Actual premium paid Rs.17,000 or Rs.20,000 whichever is less).

Thus total deduction under Section 80D comes to Rs. 32,000.

Section 80D does not cover relatives other than Spouse, Children and Parents, so the premium paid by you for your dependent mother-in-law isn’t eligible for deduction.

[TarunVir]

Thanks Taxman for answering my query. :thumb:
If my wife pay the premium for her mother's (My mother in law) mediclaim premium. Can she claim deduction under Section 80D?

[Taxman]

Yes ! Your wife can, from her taxable income, pay the premium for her mother’s health plan and claim deduction under Section 80D for the same.