doubt regarding the new Section 80D rules

POSTED BY Dr. Jayaraman ON July 31, 2012 2:14 pm COMMENTS (7)

Dear Jagoinvestor (Manish),

Your article https://www.jagoinvestor.com/2012/03/budget-2012-summary.html is very informative and enlightening. It carries many subtle points that are routinely missed, e.g., to qualify under Section 80C, the yearly insurance premium must be less than 10% of Sum Assured.

I have a doubt regarding the new 80D rules. Suppose I am salaried and have senior-citizen parents (dependent on me). Suppose I spend Rs. 5000 towards preventive health care for myself, and another Rs. 5000 for them. Can I shield both amounts, 5+5, from Tax under the new 80D rules?

Thanks,
Dr. Jayaraman

7 replies on this article “doubt regarding the new Section 80D rules”

  1. Dr. Jayaraman says:

    Well, I haven’t come across any clear definition or “approved” list for what can be considered preventive. I suppose we can make a case for any test or check-up that is not done for specific diagnostic purposes. For example, we might claim a blood test (complete lipid profile, haemoglobin, blood glucose, minerals, etc.) that we underwent simply to make sure that our health is all right. In other words, that blood test was not related to any disease or treatment.

    Tax experts, what do you think?

    1. Ramprakash says:

      How about vaccination? Vaccines help in prevention and not for cure. So Vaccines are preventive in very nature!!!

  2. Ramprakash says:

    Hi

    Is there any comprehensive list on what constitutes a preventive health check-up?
    Are ultra sounds/ MRI/ CT Scan included?

    Thanks

  3. Zoeb says:

    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.

    what does the above statement mean, can you please give your inputs on that, as per our company rules it is not consider for the current assesment year i.e., employee will not have a benefit of 10,000 Rs (self + spouse + dependent parent) premedical checkup, and he/she can show as tax declaration

  4. Zoeb says:

    As per my understanding the new rule of 5K will be applicable only after 1st april 13, so wont be able to show for income tax deduction during the current financial year

    1. Dr. Jayaraman says:

      hi Zoeb,

      Seems we can use it for AY 2013-14 itself. See quote below, in particular, the last line:

      ———————————

      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.

  5. Dear Dr. Jaya, yes is the answer. Your own 5K ‘ll be part of your own 15K limit & parent’s 5K ‘ll be part of 20K limit being Sr. citizen. combined benefit for you ‘ll be a max. of 35K Rs. including this 5+5K Rs. & health ins. prem. paid for you & your family & parents.

    Thanks

    Ashal

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