Mediclaim Policy - Sec. 80D

1. Deduction for mediclaim premium has increased from 10,000/- to 15,000/- w.e.f. 1st April 2006.
2. A higher deduction up to Rs.20,000/- can be claimed from 1st April 2007, if at least one member in the family is senior citizen.
3. Mediclaim premium should be paid out of taxable income only. Hence the mediclaim premium should not be paid from the LIC maturity amount.
4. The amount is entitled for deduction provided the premium is paid not in cash.
5. Even an employer can claim as expense the mediclaim premium paid for his staff provided the same is paid otherwise than in cash.