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CA Intermediate · Taxation · Deductions from Gross Total Income

Anil, aged 45, is a resident individual under the old tax regime. In tax year 2026-27 he paid by cheque a health insurance premium of Rs 18,000 covering himself, his spouse and his children. He also spent Rs 4,000 in cash on a preventive health check-up for himself. He paid by cheque Rs 46,000 as the health insurance premium for his mother, aged 68, who is dependent on him. What is his total deduction for health insurance and preventive check-up?

The total deduction is Rs 68,000. The self and family limit of Rs 25,000 is not exceeded by Rs 22,000, which is the premium of Rs 18,000 plus the Rs 4,000 check-up paid in cash. The senior citizen parent's premium of Rs 46,000 is under the Rs 50,000 limit. Adding gives Rs 68,000.

  1. ARs 68,000Correct
  2. BRs 64,000
  3. CRs 75,000
  4. DRs 70,000

Explanation

For self and family: premium Rs 18,000 + preventive check-up Rs 4,000 (cash is allowed for check-up, within Rs 5,000) = Rs 22,000, which is within the Rs 25,000 limit. For the senior citizen parent: Rs 46,000 is within the Rs 50,000 limit. Total = Rs 22,000 + Rs 46,000 = Rs 68,000. Rs 64,000 wrongly leaves out the cash check-up expense.

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