Question

The quantum of deduction allowed under Section 80D in case of HUF shall be limited to :

• A. ₹ 5,000
• B. ₹ 15,000
• C. ₹ 7,500
• D. ₹ 12,500

Hint:

The HUF limit given in the textbook is Rs 15,000. Later Finance Acts raised the limit.

Answer 1

The Correct Option is B

Step 1: Understand the rule:
Section 80D allows a deduction for health insurance (mediclaim) premium paid by an assessee. For a HUF the deduction is limited to a fixed amount.

Step 2: Recall the textbook limit:
As given in the CBSE Taxation textbook, the deduction for a HUF is limited to Rs 15,000.

Step 3: Check the options:
Rs 5,000 is the smaller limit for a preventive health check-up. Rs 7,500 and Rs 12,500 are not limits under this section. Only Rs 15,000 matches the textbook, so option (B) is correct.

Step 4: A practical note:
Later Finance Acts have raised this limit. Check the latest figure before you file a real return.

Final Answer:
The deduction under Section 80D for a HUF is limited to Rs 15,000. The correct option is (B).