Section 80D of Income tax Act, 1961

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1. Applicability – Individual and HUF including Non Resident Individuals (“NRI“)

2. Definitions: Family – means Spouse and Dependent Children Senior Citizen – means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year;

3. Investment or Expenditure covered under this deduction:

• Health Insurance Policy or Central Government Heath Scheme

• Preventive Health Check-up (“PHC“)

• Medical Expenditure – Only for Senior Citizen and where health insurance is not taken.

INDIVIDUAL 1. Deduction is available for two category:

• Assessee and Family

• Parents

2. Maximum amount of deduction under this section for both category is INR 1 lakh

3. Maximum amount of deduction for each category is INR 50,000

4. Mode of Payment – Payment shall be made in any mode other than Cash (For PHC, cash payment is allowed)

5. The deduction for Health Insurance including PHC is INR 25,000 for each category. This would be increased to INR 50,000 in each category in case of Senior Citizen.

6. The deduction for PHC cannot exceed INR 5,000 in aggregate. 7. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen in each category subject to upper limit in point 2 and 3.

HINDU UNDIVIDED FAMILY

1. Maximum amount of deduction is INR 50,000. 2. The deduction for Health Insurance is INR 25,000 for any member of HUF. This would be increased to INR 50,000 in case such member is Senior Citizen. 3. No Deduction for PHC for HUF 4. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen subject upper limit in point 1. 5. Mode of Payment – Payment shall be made in any mode other than Cash.

In case a lumpsum amount (single premium) is paid for Health insurance, covering more than a year, deduction shall be provided proportionately over the years for which the benefit of health insurance is available for both Individual and HUF.