What is the amendment brought in Section 80D (of Income Tax Act, 1961) by Budget 2018?
What is the amendment brought in Section 80D (of Income Tax Act, 1961) by Budget 2018?
Kanishka Feb. 02, 2018
- Section 80D has been made more alluring by increasing the exemption limit and more and more individuals will be morphed for buying of medical insurance policy.
- Premium for health insurance policies including expenses for preventive health checkup paid upto Rs 50,000 will now get deduction under Section 80D. Earlier this limit used to be Rs 30,000.
- In case medical insurance policy is for more than 1 year and one time premium is paid, then deduction will be proportionated over the tenure of medical insurance policy.
- So for individuals who were paying premium for their parents and parents age is 60 years or more, now they can avail deduction under Section 80D for Rs 50,000. For medical insurance of self/spouse/children, existing benefit of Rs 25000 is still available. So total benefit under Section 80D can now be upto Rs 25000+50000= 75000 if your parents age is 60 years or more….
- In case your age is also 60 years or more, then total benefit under Section 80D will be of whooping Rs 50,000+50,000= Rs 1,00,000..
