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25. Amendment of section 80D.
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—In section 80D of the Income-tax Act, in sub-section (2), in clause (a), after the words "his family", the words "or any contribution made to the Central Government Health Scheme" shall be inserted with effect from the 1st day of April, 2011.
Clause 25 of the Bill seeks to amend section 80D of the Income-tax Act, relating to deduction in respect of health insurance premia.
Under the existing provisions contained in clause (a) of sub-section (2) of the aforesaid section 80D, the whole of the amount paid by any mode, other than cash, in the previous year out of the income of the assessee, being an individual, to effect or keep in force an insurance on his health or the health of 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.
It is proposed to amend the said clause (a) so as to also allow the benefit of the deduction in respect of a contribution made by the assessee during the previous year to the Central Government Health Scheme within the said limit.
This amendment will take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-2012 and subsequent years.
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