Answer

1. F

   Facts

   For a multi-year health policy paid in one go, 80D allows the deduction spread equally over the policy years, within the yearly limit.

2. P

   Provisions and law

   • Sec 80D, Income-tax Act 1961 (now Sec 126)Health insurance deduction up to ₹25,000 for self, spouse and children (₹50,000 if senior) and another ₹25,000 for parents (₹50,000 if senior), with ₹5,000 for preventive check-up inside these limits.
3. A

   Analysis

   ₹60,000 for three years gives ₹20,000 a year, which you claim this year and the next two years, within the ₹25,000 limit each year. Claiming ₹60,000 in one year will be cut. Keep the policy document showing the term.

4. C

   Conclusion

   1. 1Check the policy term on the document.
   2. 2Divide premium by the number of years.
   3. 3Claim one share each year.
   4. 4Keep the receipt for all years.

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