Section 80D of the Income-tax Act provides a deduction in respect of premium paid on health insurance of self, spouse and dependant children or any contribution made to the Central Government Health Scheme, up to a maximum of Rs.15,000 in aggregate.A further deduction of Rs.15,000 is also allowed for buying a health insurance policy in respect of parents.
Finance Bill 2012-13 has proposed to amend section 80D 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.
Finance Bill has proposed and rightly so because the health check ups are of very little value, the condition f payment be cheque shall be burdensome for all . Thus , it provides 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.