Mediclaim Benefit Calculator
Mediclaim Benefit Calculation Under Section 80D with Example
Illustration: Mr Sumant aged 40 years made the following payments during the financial year 2017-18:
- Paid medical insurance premium of Rs 22,500 on his policy.
- Payment of medical insurance premium on the policy of his spouse Rs 6,000.
- Payment of medical insurance premium on the policy of his younger daughter who is dependent on him Rs 4,500.
- Payment of medical insurance premium on the policy of his elder daughter who is self-employed and not dependent on him Rs 7,500.
- Payment of medical insurance premium on the policy of his parents (resident and aged 68 years), Rs 27,000 on a policy of his father and Rs 27,000 on a policy of his mother.
- Payment of Rs 4,500 towards expenditure on preventive health check-up (for his own check-up and check-up of his wife).
How much deduction can Mr Sumant get under Section 80D for the FY 2017-18?
Solution: To calculate the total deduction under Section 80D for Mr Sumant, we need to find out the payments which qualify for the deduction. We can refer to the following table to understand the deduction limits:
|Deductions under section 80D|
|Situations based on age||Eligible deduction limits (up to Rs.)||Total eligible deduction limit under section 80D up to Rs. 5,000 on preventive health checkup subject to overall limit of either Rs 25,000 or Rs 30,000)|
|Medical Insurance Premium paid in respect of|
|Medical Insurance Premium paid in respect of||Parents (whether dependent or not)|
|No one has attained age of 60 Years||25,000||25,000||50,000|
|You and your family is less than 60 years & Parents are above 60 years of age||25,000||30,000||55,000|
|You and your parents have attained the age of 60 years and above||30,000||30,000||60,000|
From the table above, we can arrive at the eligible deduction limits for each payment as follows:
- Medical insurance premium of Rs 22,500, Rs 6,000 and Rs 4,500 he paid for himself, his spouse and his dependent daughter will qualify for the deduction, but, it will be restricted to Rs 25,000 as per the provisions of Section 80D.
- However, a premium of Rs 7,500 paid for a policy of elder daughter who is not dependent on him will not qualify for the deduction.
- Medical insurance premium paid for a policy of his parents will qualify for the deduction, but, it will be restricted to Rs 30,000 (being Senior Citizens).
- Expenditure of Rs 4,500 on preventive health check-up will also qualify for the deduction subject to overall limits of Rs 25,000 sice it is for himself and wife.
Therefore, the overall deduction under section 80D will amount to Rs. 25,000 for expenditure on premium paid in respect of his own policy, policy of his spouse and dependent daughter and Rs. 30,000 in respect of premium paid on policy of his parents.
Deduction on account of expenditure on preventive health check-up of Rs. 4,500 will not be allowed since the overall deduction limit has already reached maximum threshold of Rs 55,000.
Total deduction under section 80D will amount to Rs. 55,000 (Rs. 25,000 + Rs. 35,000).