GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In cash
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Cash/by cheque
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By any mode other than cash
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None of these
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Detailed explanation-1: -The taxpayer (being individual/HUF) can claim deduction under section 80D in respect of medical insurance premium paid by him in any mode other than cash. However, payment on account of preventive health check-up can be made in cash.
Detailed explanation-2: -Medical insurance premiums should be paid through non-cash modes to be eligible for Section 80D deductions of the Incomes Tax Act. You can pay the premium through online banking, cheque, demand draft, debit or credit cards, etc. Section 80D deduction is not accessible on cash payment of the premium.
Detailed explanation-3: -The amount of deduction that can be claimed under Section 80D depends on the age of the insured person. If a taxpayer below the age of 60 years has paid health insurance premium for self, spouse and dependent children, then he/she can claim deduction of Rs 25, 000 for the financial year using section 80D.
Detailed explanation-4: -Payment for medical insurance premium (mode other than cash) /contribution to CGHS. Payment of medical insurance premium for resident Sr. Citizen – (mode other than cash) Payment made for preventive health check up.