The following amendments have been made to the scheme of section 80D with effect from the assessment year 2019-20 as follows –
• Section 80D, inter alia, provides that for medical insurance (or preventive health ‘check-up of a senior citizen), deduction of Rs. 30,000 shall be allowed. Further, in the case of super senior citizens, the said section also provides for a deduction of medical expenditure within the overall limits of Rs. 30,000.
The above monetary limits have been extended so as to provide that the deduction of Rs. 50,000 in aggregate shall be allowed to senior citizens in respect of medical insurance or preventive health check-up or medical expenditure.
• In case of single premium health insurance policies having cover of more than one year, deduction under section 80D shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit.
Provisions of section 80D before and after amendment. Section 80D provisions (before and after amendment) are narrated in the table given below —
|
Deduction in the case of
individual |
Deduction in the
case of HUF |
For whose benefit payment can be made |
Family |
Parents |
Any member of
HUF |
A. |
a. Medi-claim insurance premium |
Eligible |
Eligible |
Eligible |
b. Contribution to CGHS / notified scheme |
Eligible |
- |
- |
c. Preventive health check-up payment |
Eligible |
Eligible |
- |
Maximum Deduction :
- General deduction [applicable in respect of.(a), (b) and (c)]
- Additional deduction [applicable only in case of (a) when Mediclaim policy is taken on the life of a senior citizen]
|
Rs. 25,000 |
Rs. 25,000 |
Rs. 25,000 |
s For the assessment years 2016-17 to 2018-19 |
Rs. 5,000 |
Rs. 5,000 |
Rs. 5,000 |
s From the assessment year 2019-20 |
Rs. 25,000 |
Rs. 25,000 |
Rs. 25,000 |
B. |
Medical expenditure on the health of a person who is a super senior citizen (senior citizen from the assessment year 2019-20) if Mediclaim insurance is not paid on the health of such person |
Eligible |
Eligible |
Eligible |
Maximum deduction in respect of (B) -
s For the assessment years 2016-17 to 2018-19 |
Rs. 30,000
|
Rs. 30,000
|
Rs. 30,000
|
C. |
s From the assessment year 2019-20 |
Rs. 50,000 |
Rs. 50,000 |
Rs. 50,000 |
Maximum deduction in respect of (A) and (B) -
s For the assessment years 2016-17 to 2018-19 |
Rs. 30,000
|
Rs. 30,000
|
Rs. 30,000
|
s From the assessment year 2019-20 |
Rs. 50,000 |
Rs. 50,000 |
Rs. 50,000 |
|
