Section 80D of income tax act provides that any sum paid for any insurance for assessee or the family of the assessee or any contribution made on Central government Health Scheme (CGHS) or any payment made for preventive health check-up of the assessee or his family, as does not exceed in the aggregate fifteen thousand rupees, is allowed to be deducted in computing the total income of the assessee.
Amendment proposed by Finance Bill, 2013: Finance Bill, 2013 proposes to expand the scope of deduction under section 80D by expanding the eligible schemes on which deduction shall be available by amending section 80D with effect from 1.04.2014 which provides as under:
'In section 80D of the Income-tax Act, in sub-section (2), in clause (a), after the words "Central Government Health Scheme", the words "or such other scheme as may be notified by the Central Government in this behalf" shall be inserted with effect from the 1st day of April, 2014.'
Central Government Health Scheme and state government health scheme are just like each other but in section 80d of income tax act, the relief is provided only on CGHC. So in this budget, FM proposes State government health scheme is also eligible for deduction under section 80d of income tax act.
This deduction will be available from 1 April 2013.
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