SAVE INCOME TAX

HOW TO SAVE INCOME TAX  UNDER SECTION 80D 

DEDUCTION UNDER SECTION 80D

To be available in respect of contribution to CGHS and such other schemes within the overall limit specified thereunder

(i) Section 80D provides for deduction of upto `15,000 for mediclaim premium paid by an individual to insure the health of self, spouse and dependent children and contribution to Central Government Health Scheme (CGHS). If any of the persons mentioned above are senior citizens, the maximum deduction would be ` 20,000 instead of ` 15,000.

(ii) Section 80D has been amended in order to bring other health schemes of the Central and State Governments (which are similar to the CGHS but for which no deduction is presently available under the Income-tax Act, 1961 to the subscribers of such schemes) at par with CGHS.

(iii) Accordingly, the benefit of deduction under section 80D would be available in respect of any payment or contribution made by the assessee to such other health scheme as may be notified by the Central Government. However, like in the case of contribution to CGHS, the deduction for contribution to such other scheme would be within the overall limit of ` 15,000 or ` 20,000, as thecase may be.