Amendment of section 80D.
25. In section 80D of the Income-tax Act, with effect from the 1st day of April, 2013,—
(a) in sub-section (1), for the words “, other than cash,”, the words, brackets, figure and letter “as specified in sub-section (2B),” shall be substituted;
(b) in sub-section (2),—
(A) in clause (a), after the words “the Central Government Health Scheme”, the words “or any payment made on account of preventive health check-up of the assessee or his family” shall be inserted;
(B) in clause (b), after the words “parents of the assessee”, the words “or any payment made on account of preventive health check-up of the parent or parents of the assessee” shall be inserted;
(c) after sub-section (2), the following sub-sections shall be inserted, namely:—
“(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.
(2B) For the purposes of deduction under sub-section (1), payment shall be made by—
(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(ii) any mode other than cash in all other cases not falling under clause (i).”;
(d) in sub-section (4), in the Explanation, for the words “sixty-five years”, the words “sixty years” shall be substituted.
Notes on Clauses:
Clause 25 of the Bill seeks to amend section 80D of the Income-tax Act relating to deduction in respect of health insurance premia.
The existing provisions of section 80D provide for deduction up to fifteen thousand rupees to an assessee, being an individual or a Hindu undivided family, who makes payment of the specified sum by any mode, other than cash, to effect or keep in force an insurance on-
(a) the health of the assessee or on the health of the wife or husband, or dependant children of the assessee where the assessee is an individual;
(b) the health of any member of the family where the assesse is a Hindu undivided family.
Further, a deduction up to fifteen thousand rupees is also allowed to keep in force an insurance on the health of parents.
It is proposed to amend the aforesaid section so as to allow for a deduction in respect of any payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parent during the previous year up to a limit of five thousand rupees within the existing limits prescribed in the section.
The existing provisions allow a higher deduction up to twenty thousand rupees in the case of senior citizen.
It is proposed to amend the Explanation to sub-section (4) of the aforesaid section so as to reduce the age for defining a senior citizen from sixty-five years to sixty years for the purposes of the said deduction.
It is also proposed that for the purposes of the aforesaid deduction, payment shall be made by -
(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(ii) 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 2013-2014 and subsequent assessment years.
