Section 80D - Deduction in respect of health insurance - Income-tax Act, 1961

13 [Deduction in respect of health insurance 80D . (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, 15 [ as specified in sub-section (2B) ] . previous year out of his income chargeable to tax. (2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:- (a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family 14 [or any contribution made to the Central Government Health Scheme 19 [or such other scheme as may be notified by the Central Government in this behalf], 16 [ or any payment made on account of preventive health check-up of the assessee or his family ] ] as does not exceed in the aggregate 20 [twenty-five thousand rupees]; and (b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee 17 [ or any payment made on account of preventive health check-up of the parent or parents of the assessee ] as does not exceed in the aggregate 20 [twenty-five thousand rupees]. 22 [(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggr egate 28 [fifty thousand rupees]; and (d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate 28 [fifty thousand rupees]: Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a 29 [***] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person: Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed 28 [fifty thousand rupees].] Explanation .- For the purposes of clause (a), family means the spouse and dependant children of the assessee. 17 [ (2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees. (2B) For the purposes of deduction under sub-section (1), payment shall be made by- (i) any mode, including cash, in respect of any sum paid on account of preventive health check-up; (ii) any mode other than cash in all other cases not falling under clause (i). ] 23 [(3) Where the assessee is a Hindu undivided family, the sum referred to in sub-section (1), shall be the aggregate of the following, namely:- (a) whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate twenty-five thousand rupees; and (b) the whole of the amount paid on account of medical expenditure incurred on the health of any member of the Hindu undivided family as does not exceed in the aggregate 30 [fifty thousand rupees]: Provided that the amount referred to in clause (b) is paid in respect of a 31 [***] senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person: Provided further that the aggregate of the sum specified under clause (a) and clause (b) shall not exceed 30 [fifty thousand rupees].] (4) Where the sum specified in clause (a) or clause (b) of sub-section (2) 24 [or clause (a) of sub-section (3)] is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, 32 [***] the provisions of this section shall have effect as if for the words 20 [twenty-five thousand rupees] , the words 33 [fifty thousand rupees] had been substituted. 34 [(4A) Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount. Explanation.-For the purposes of this sub-section,- (i) appropriate fraction means the fraction, the numerator of which is one and the denominator of which is the total number of relevant previous years; (ii) relevant previous year means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effect or be in force. 26 [***] (5) The insurance referred to in this section shall be in accordance with a scheme made in this behalf by- (a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 and approved by the Central Government in this behalf; or (b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999. ] 27 [ Explanation. -For the purposes of this section,- (i) 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; 35 [***] **************** NOTES:- 1. Inserted by the Income-tax (Amendment) Act, 1986, w.e.f. 1-4-1987. Original section 80D dealing with deduction in respect of medical treatment, etc., of handicapped dependants was introduced by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968 replacing old section 80B which was inserted by the Finance Act, 1965, w.e.f. 1-4-1965. Original section 80D, prior to its omission by the Finance Act, 1984, w.e.f. 1-4-1985, was amended by the Finance Act, 1981, w.e.f. 1-4-1982 and the Finance Act, 1968, w.e.f. 1-4-1969. 2. Words paid by him by any mode of payment other than cash shall be substituted for paid by him by cheque by the Finance Act, 2007, w.e.f. 1-4-2008. 3. Word fifteen shall be substituted for ten by the Finance Act, 2007, w.e.f. 1-4-2008. 4. Substituted for six by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. Earlier six was substituted for three by the Finance Act, 1992, w.e.f. 1-4-1993. 5. Word fifteen shall be substituted for ten by the Finance Act, 2007, w.e.f. 1-4-2008. 6. Substituted for six by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. Earlier six was substituted for three by the Finance Act, 1992, w.e.f. 1-4-1993. 7. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 8. Word fifteen shall be substituted for ten by the Finance Act, 2007, w.e.f. 1-4-2008. 9. Word twenty shall be substituted for fifteen by the Finance Act, 2007, w.e.f. 1-4-2008. 10. Omitted by the Finance Act, 1994, w.r.e.f. 1-4-1987. Prior to its omission, clause (c), as inserted by the Income-tax (Amendment) Act, 1986, w.e.f. 1-4-1987, read as under : (c) where the assessee is an association of persons or a body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, any sum paid to effect or to keep in force an insurance on the health of any member of such association or body or on the health of the dependent children of the members of such an association or body : 11. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. Prior to its substitution, proviso read as under : Provided that such insurance shall be in accordance with a scheme framed in this behalf by the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf. 12. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 13. Subusttuted by Finance Act, 2008, w.e.f. 1.4.2009. Prior to substitution it was read as under: 1 [Deduction in respect of medical insurance premia. 80D. (1) In computing the total income of an assessee, there shall be deducted at the following rates, such sum as is specified in sub-section (2) and 2 [ paid by him by cheque ] in the previous year out of his income chargeable to tax, namely :- ( i ) in a case where such sum does not exceed in the aggregate 3 [ 4 [ ten ]] thousand rupees, the whole of such sum; and ( ii ) in any other case, 5 [ 6 [ ten ]] thousand rupees : 7 [Provided that where the sum specified in sub-section (2) is paid to effect or to keep in force an insurance on the health of the assessee, or his wife or her husband or dependant parents or any member of the family in case the assessee is a Hindu undivided family, and who is a senior citizen, the provisions of this section shall have effect as if for the words 8 [ ten ] thousand rupees , the words 9 [ fifteen ] thousand rupees had been substituted. ] (2) The sum referred to in sub-section (1) shall be the following, namely :- ( a ) where the assessee is an individual, any sum paid to effect or to keep in force an insurance on the health of the assessee or on the health of the wife or husband, dependent parents or dependent children of the assessee; ( b ) where the assessee is a Hindu undivided family, any sum paid to effect or to keep in force an insurance on the health of any member of the family : ( c ) 10 [ * * * ] 11 [Provided that such insurance shall be in accordance with a scheme framed in this behalf by- ( a ) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or ( b ) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999). ]] 12 [ Explanation.- For the purpose of this section, senior citizen shall have the meaning assigned to it in the Explanation to section 80DDB. ] 14. In sub-section (2), in clause (a), after the words his family , the words or any contribution made to the Central Government Health Scheme has been inserted vide Finance Act, 2010 w.e.f. the 1st day of April, 2011. 15. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- other than cash 16. Inserted vide Finance Act, 2012, w.e.f. 01-04-2013, 17. Inserted vide Finance Act, 2012, w.e.f. 01-04-2013, 18. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- sixty-five years 19 . Inserted vide Finance Act, 2013, w.e.f. 1st day of April, 2014 20. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, fifteen thousand rupees 21. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, twenty thousand rupees 22. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 23. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, (3) Where the assessee is a Hindu undivided family, the sum referred to in subsection (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu undivided family as does not exceed in the aggregate 20 [twenty-five thousand rupees]. 24. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, or in sub-section (3) 25. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 26. Omitted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, Explanation .- For the purposes of this sub-section, senior citizen means an individual resident in India who is of the age of 18 [ sixty years ] or more at any time during the relevant previous year. 27. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 28. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, thirty thousand rupees 29. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, very 30. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, thirty thousand rupees 31. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, very 32. Omitted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, 25 [or a very senior citizen,] 33. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, 21 [thirty thousand rupees] 34. Substituted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019 35. Omitted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2019, before it was read as, (ii) very senior citizen means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.]