Any amount paid by an Individual or HUF to an Insurance company as Medical Insurance Premium i.e. premium paid in respect of Mediclaim Policy can be claimed as deduction under section 80D subject to certain limits. (Read: Details on Section 80D, 80DD and 80DDB)
I got the following question about this section the other day:
I have some querries for above subject.
Right now I am claiming deduction of Rs 1,00,000 under the above section, since I have a severely handicapped son. Few years from now I will retire and will not have taxable income and I will not be able to claim the above tax deduction. I want the deduction to be claimed by my younger son who is now employed. The elder son who is handicapped will be dependent on him. What should be done for such case. How to proceed?
Thanks in advance for clarifying the problem.
According to this section only the following people can claim exemption:
|Individual||On the health of taxpayer himself/herself, spouse, parents, dependent children of taxpayer|
|Hindu Undivided Family (HUF)||On the health of any of the member of the family|
That then means you can’t claim exemption for any payment made towards siblings but you can create a HUF and then that HUF can claim exemption, and that may be one practical way of getting tax benefit if you are in this situation. Here is an older post that explains the details of creating a HUF.