|2||Condition||Investment or application of funds during the previous year by any mode of payment other than cash|
|3||Maximum Deduction||Rs. 15,000. If they medical insurance premia is paid for senior citizen, then maximum deduction is up to Rs. 20,000|
Deduction is allowed for any medical insurance premium paid by any mode of payment other than cash out of assessee’s taxable income to GICI or any other approved insurer during the previous year, upto a maximum amount of Rs.15,000. The deduction is allowed in respect of the following :-
(a) In case of an individual – insurance on the health of the assessee or wife or husband, dependent parents or dependent children.
(b) In case of a HUF – insurance on the health of any member of the family.
However, where the assessee or his wife or her husband or dependent parents or any member of his family of HUF is a senior citizen, the limit of deduction is raised from Rs.15,000 to Rs. 20,000