Budget 2012 -13 : Deduction for expenditure on preventive health check-up

Under the existing provisions contained in section 80 D of the Income-tax Act, a deduction is allowed in respect of premium paid towards a health insurance policy for insurance of self, spouse and dependant children or any contribution made to the Central Government Health Scheme, up to a maximum of Rs.15,000 in aggregate. A further deduction of Rs.15,000 is also allowed for buying a health insurance policy in respect of parents.

It is proposed to amend this section to also include any payment made by an assessee on account of preventive health check-up of self, spouse, dependant children or parents(s) during the previous year as eligible for deduction within the overall limits prescribed in the section.

However, the proposed deduction on account of expenditure on preventive health check-up (for
self, spouse, dependant children and parents) shall not exceed in the aggregate Rs.5,000.

It is further proposed to provide that for the purpose of the deduction under section 80D, payment can be made – (i) by any mode, including cash, in respect of any sum paid on account of preventive health check-up and (ii) by any mode other than cash, in all other cases.

These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment years.

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Election results The most obvious is not obvious

"The most obvious is not obvious" I frequently receive calls from clients asking if they should invest a sum of money before the e...