medical for more than 2 years.jpg

Earlier in Financial year 2017-18(AY 2018-19)

if Medical Insurance done for 2 or more years ,

Deduction available in the year payment made

Example

Suppose a person paid medical insurance premium on 1 April 2017 of Rs 10000

Insurance Term is from 1 April 2017 to 31 March 2019 In this case,deduction available of whole 20000 in FY 2017-18 and no deduction will be available in FY 2018-19

 

Now in Financial year 2018-19(AY 2019-20)

Proportionate Deduction will be available over whole period

Example

Suppose a person paid medical insurance premium on 1 April 2018 of Rs 10000

Insurance Term is from 1 April 2018 to 31 March 2020

Hence now 10000 deduction available in both years 2018-19 and 2019-20

 

Summary

Medical insurance made for 2 years of 20000

Particulars EARLIER  NOW
FIRST YEAR 20000 10000
SECOND YEAR 0 10000

 

 

Note

To Calculate proportion,number of days is not relevant

We will take number of years starting from date premium paid to date of expiry of premium period

 

Example

Suppose an Insurance Policy taken on 1 Dec 2018 for 2 years

Policy Premium paid of total 20000(from 1 Dec 2018 to 30 Nov 2020)

What is Medical Insurance available every year?

View Answer
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.