80d when incurred in cash
arifa hussain (17 Points)
03 May 2021
medical expenses incurred 50,000 in CASH can be claimed as deduction during treatment of senior citizen
5 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 03 May 2021
Yes, deduction can be claimed
CA Raj Doshi
(Practising CA)
(8939 Points)
Replied 03 May 2021
Dear Arifa, it is not eligible for deduction. Medical expenditure upto Rs. 50000 is eligible only when paid other than by cash. Also, this is only when there is no health insurance policy of the senior citizen.
Lotus Agrawal
(Practice)
(1361 Points)
Replied 03 May 2021
No u can claim the deduction for medical expenses incurred in cash.
sabyasachi mukherjee
(27682 Points)
Replied 03 May 2021
Medical expenses incurred by employees can be claimed as deduction under the head of 'Income from business and profession' if paid by cheque .
In case an individual pays the entire part in cash for senior citizens
Premium paid on health premium is allowable as an exemption if the senior citizen income threshold is above Rs. 5 lacs.
From this year Budget 2021 the finance ministry has made it mandatory for senior citizens not to file return of income.
In case an individual pays the entire part in cash for senior citizens
Premium paid on health premium is allowable as an exemption if the senior citizen income threshold is above Rs. 5 lacs.
From this year Budget 2021 the finance ministry has made it mandatory for senior citizens not to file return of income.
CA Raj Doshi
(Practising CA)
(8939 Points)
Replied 03 May 2021
Sec 80D from Income Tax Act
Deduction in respect of health insurance premia.
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode as specified in sub-section (2B), in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or any contribution made to the Central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or any payment made on account of preventive health check-up of the assessee or his family as does not exceed in the aggregate twenty-five thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee or any payment made on account of preventive health check-up of the parent or parents of the assessee as does not exceed in the aggregate twenty-five thousand rupees;
(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate fifty thousand rupees; and
(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate fifty thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed fifty thousand rupees.
Explanation.—For the purposes of clause (a), "family" means the spouse and dependant children of the assessee.
(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.
(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—
(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(ii) any mode other than cash in all other cases not falling under clause (i).
Deduction in respect of health insurance premia.
80D. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode as specified in sub-section (2B), in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:—
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family or any contribution made to the Central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or any payment made on account of preventive health check-up of the assessee or his family as does not exceed in the aggregate twenty-five thousand rupees; and
(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee or any payment made on account of preventive health check-up of the parent or parents of the assessee as does not exceed in the aggregate twenty-five thousand rupees;
(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate fifty thousand rupees; and
(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate fifty thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed fifty thousand rupees.
Explanation.—For the purposes of clause (a), "family" means the spouse and dependant children of the assessee.
(2A) Where the amounts referred to in clauses (a) and (b) of sub-section (2) are paid on account of preventive health check-up, the deduction for such amounts shall be allowed to the extent it does not exceed in the aggregate five thousand rupees.
(2B) For the purposes of deduction under sub-section (1), the payment shall be made by—
(i) any mode, including cash, in respect of any sum paid on account of preventive health check-up;
(ii) any mode other than cash in all other cases not falling under clause (i).
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