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Dr.I.N.Mukherjee
21-12-2011, 01:53 PM
Pl. inform whether the total premium paid including S.T+ E.Cess(10.3%) towards Mediclaim Insurance under 80 D upto Rs.15000/- is eligible for Tax rebate or the S.T+E.Cees part has to be deducted from the total premium paid for tax rebate?

SASI
21-12-2011, 06:58 PM
The Income tax Circular says:

"(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or any contribution made to the CGHS as does not exceed in the aggregate fifteen thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupees."

The premium is to bepaid by any mode of payment other than cash.

sasi

Dr.I.N.Mukherjee
22-12-2011, 12:32 AM
Dear Sasi,

Many thanks.It is understood from your reply that the whole of the amount paid towards any Mediclaim Insurance Policy for self,family,parents upto Rs.15000/- i.e. including S.T+E.Cess is eligible for Income Tax exemption.But, audit team has raised objection regarding the S.T+E.Cess component e.g. if one paid Rs.9753/- towards Mediclaim Insurance Policy including S.T+E.Cess : @10.3% ,the Audit team has allowed Rs.8842/- only for IT exemption after deducting 10.3% of Rs.9753/- from Rs.9753/- .Is it correct? Pl. reply quoting downloadable IT rules so that the documents could be produced to the Audit team.