Deduction for Payment

80D

Individual and HUF

Any payment by cheque for medical insurance premia in accordance with a scheme framed

• By General Insurance Corporation of India approved by the Central Government, or

• Any other Insurer and approved by the (IRDA) Insurance Regulatory and Development Authority Established under the Insurance Regulatory and Development Authority Act, 1999.

In case of Individual

Sum paid to insurance on the health of the assessee, his spouse, dependent parents or dependent children of the assessee.

In case of (HUF) Hindu Undivided Family

Sum paid to keep in force insurance on the health of any member of the family.

Least of the following: -

• Actual Contribution.

• Rs.10,000

However, if it includes policy on senior citizen, the total ceiling is raised to Rs.15,000.

80DDB

Individual and HUF; Resident in India

Actually incurs any expenditure for medical treatment of any diseases or ailments specified in the rules made by the Board of Direct Taxes-

• For himself or a dependent relative, in case the assessee is an individual.

• For any member of HUF, in the case of HUF.

Certificate in Form 10-I from a Neurologist, Oncologist, Urologist, Haematologist, Immunologist or such other notified specialists working in a Government Hospital is to be produced with the return of income.

Note: -

Deduction shall be reduced by the amount received, under insurance from the insurer or his employer.

Lower of the following: -

• Actual Expenditure.

• Rs.40,000.

Note: -

However, if it includes treatment on senior citizen, the total ceiling is raised to Rs.60,000.

80DD

Individual and HUF; Resident in India

Where the assessee has -

• Incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of dependent with disability/severe disability; or

• Paid or deposited any amount under any scheme framed in this behalf by LIC or any other Insurer or Unit Trust of India approved by the Board for the maintenance of such dependent.

The deduction for payment of such Medical expenses shall be allowed only if -

• The Insurance scheme referred to provides for payment of annuity or lump sum amount for the benefit of such dependent in the event of the death of the individual or the member of the HUF in whose name the subscription to the scheme has been made.

• The assessee nominates either such dependent or any other person or a trust to receive the payment on his behalf, for such dependent's benefit.

• Copy of Certificate issued by the Medical Authority in the prescribed form is furnished along with the return of income for each Assessment Year for which deduction is claimed.

Amount deemed to be income: -

If such dependent predeceases the individual or the member of the HUF, an amount equal to the amount paid or deposited shall be deemed to be the income of the assessee.

Standard deduction of

• Rs.50,000 for a dependent with disability, or

• Rs.75,000 for a dependent with severe disability.

80U

Individual and Resident in India

Where the assessee has -

• Incurred any expenditure for the medical treatment of blindness, low vision, leprosy cured, hearing impairment, locomotor disability, mental retardation or mental illness.

• The deduction for payment of such Medical expenses shall be allowed only if -

  • The assessee is Resident Individual

  • Such individual is certified by the Medical Authority that he is a person with disability or severe disability.

  • Such Certificate, valid on such date, is furnished along with the return of income for each Assessment Year for which deduction is claimed.

Standard deduction of

• Rs.50,000 for an Individual with disability, or

• Rs.75,000 for an Individual with severe disability.

80E

Individual

Amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken from any financial institution or any approved charitable institution for the purpose of pursuing his higher education.

The deduction is available for the

• Eight years commencing with the year in which the payment of interest starts or

• Until the interest is repaid in full

whichever is earlier.

Whole interest paid during the previous year.

80GG

Individual

Rent paid by the individual for his residential accommodation is eligible for deduction.

For this purpose,

1. The assessee should not be in receipt of House Rent Allowance (HRA).

2. No residential accommodation shall be owned by the assessee or by his spouse or minor child, at the place where he resides.

3. No self-occupied residential accommodation shall be owned by the assessee at any other place.

Least of the following: -

• Rent paid in excess of 10% of Total Income.

• 25% of Total Income

• Rs.2,000 p.m.

Note: -

Total Income = Gross Total Income - Chapter VI-A Deductions (except 80GG).