Deduction under Section 80D for contribution to Health Schemes similar to CGHS is allowable

The existing provisions of section 80D, inter alia, provide that the whole of the amount paid in the previous year out of the income chargeable to tax of the assessee, being an individual, to effect or to keep in force an insurance on his health or the health of the family or any contribution made towards the Central Government Health Scheme (CGHS) or any payment made on account of 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.

As we all are aware that there are other health schemes of the Central and State Governments, which are similar to the CGHS but no deduction for such schemes is available to the subscribers of such schemes. In order to bring such schemes at par with the CGHS, it is amended section 80D with effect from 01 April, 2014, so as to allow the benefit of deduction under this section within the said limit, in respect of any payment or contribution made by the assessee to such other health scheme as may be notified by the Central Government.

Quantum of Deduction u/s 80D are as under:

  • In case of the individual, Rs. 25,000 for himself and his family
  • If individual or spouse is 60 years old or more the deduction available is Rs 50,000
  • An additional deduction for insurance of parents (father or mother or both, whether dependent or not) is available to the extent of Rs. 25,000 if less than 60 years old and Rs 50,000 if parents are 60 years old or more.
  • For uninsured super senior citizens (80 years old or more) medical expenditure incurred up to Rs 50,000 shall be allowed
  • A deduction of Rs. 5000 will be allowed under this section for payment of preventive health check-up of either the individual himself or his family members which includes spouse, parents and dependent children.This deduction is NOT in addition to the deduction of Rs.25000/50000 stated above, but is included in the above deduction

Replaced with Amendments

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29 Comments

  1. Prabir Kumar dey says:

    Sir, I am a retired employee of BSNL, a Central PSU. The BSNL offers us opportunity to pay lump-sum amount as CGHS contribution for getting lifetime CGHS facilities and BSNL will reimburse the contribution amount later on. Accordingly, I paid Rs. 78 Thousand to CGHS in Nov, 20 and BSNL reimbursed me the same in mar, 21.
    Kindly advice me, how to calculate income tax for fy 20-21 for both the transactions?
    Regards.

  2. Prabir Kumar dey says:

    Sir, I am a retired employee of BSNL, a Central PSU. The BSNL offers us opportunity to pay lump-sum amount as CGHS contribution for getting lifetime CGHS facilities for me and my spose and BSNL will reimburse the contribution amount later on. Accordingly, I paid rs. 78 Thousand to CGHS in Nov, 20 and BSNL reimbursed me the same in mar, 21.
    Kindly advice me, how to calculate income tax for fy 20-21 for both the transactions?
    Regards.

  3. NIMAI CHARAN SARKAR says:

    Sir, I am a retired employee of BSNL, a Central PSU. The BSNL offers us opportunity to pay lump-sum amount as CGHS contribution for getting lifetime CGHS facilities and BSNL will reimburse the contribution amount later on. Accordingly, I paid rs. 1.2 lakh to CGHS in Nov, 20 and BSNL reimbursed me the same in mar, 21.
    Kindly advice me, how to calculate income tax for fy 20-21 for both the transactions?
    Regards.

  4. Simon says:

    I have paid 120000 for CGHS insurance when I have retired in the year2019.I have claimed tax exemption 50000/for the year 2019-20.is it possible to claim another 50k exemtuonfor 20_21. Since we paid 10 years subscription as advance.

  5. SUNIL SAHASRABUDDHE says:

    I am retired on 31 March 2019 and paid Rs. 70400 for One time CGHS scheme. shall I get tax rebate under section 80 D of IT. Kindly clarify. Thanks. Regards

  6. MV says:

    Kindly give me that circular that provide information that Other schemes (ex-RELHS) are also benefited from 80d deduction like CGHS. as i didn’t find any official circular. Kindly confirm before posting.

  7. Gursharan Singh says:

    My wife retired from Delhi administration. She paid Rs 120000/- to DGEHS through my pension account in FY 2019-20 for availing life time Joint medical card (husband & wife). Am I eligible for tax rebate under Sec 80 D in AY 2020-21. If yes then upto what amount the rebate is permissible to me. Both me and my wife are retired senior citizen.

  8. Gursharan Singh says:

    My wife paid Rs 120000/- through my pension account in FY 2019-20 to DGEHS for availing life time Joint medical card (husband & wife). Am I eligible for tax rebate in AY 2020-21. If yes then upto what amount the rebate is permissible to me. Both we are senior citizen.

  9. Jaspal Singh says:

    Sir,I took voluntary retirement at the age 53 hrs& paid Rs 1,20,000/in the future 2019-20 as one time payment for availing life long medical facilities as per CGHS card.
    Can I get tax rebate & under which section.kindly reply through mail

  10. SUJIT KUMAR GHOSH says:

    Being a member & Card holder paying Rs 120030.00 of CGHS in the Fy yr 2019-20 whether I will get any tax savings in Income taxes.?

  11. Nrusingh Charan Nanda says:

    Sir,
    I am retired form Central Govt. service on 31st January,2019. I have paid lump-sum amounting Rs.1,20,000 towards lifetime CGHS facilities during April,2019. Can I get income tax benefit. If yes under which section. Pl. clarify.

  12. Pradip Deshpande says:

    Sir, I am retired employee my wife is also retired we are both sr.citizens We can’t afford to pay health insurance premium/can we claim deduction under section ,80D for medical expenses incurred by me upto rs.50000/-.we are not covered by ant health insurance policy, please guide.

  13. Sant Sharon Prasad says:

    I retired on 31/01/2019 paid 79000 in Feb 2019 for life like treatment&check up. Am I entitle for rebate for it assessment year 2019-2020? If yes under what head, please intimate

  14. R Balasubramani says:

    I am a retiree GS and made one time payment of RS. 79000 to CGHS . Under which section of Income tax I am eligible for deduction

  15. Inderpal S Pundir says:

    am retiree GS and contributed rs 79000 towards CGHS for card whether tnhis amty exempted from income tax for the fy 2017-18

  16. Inderpal S Pundir says:

    I am a retiree govt servant and con tributed rs 79000 towards cghs wether this amty may b e exempted from income for the fy 2017-18

  17. Param Jeet Gaind says:

    I as Senior citizen contributed RS.39,000 to CGHS for lifetime medical facility for self,wife and dependent daughter for FY 2016-17. What is the tax rebate and under which section of I.tax it falls?

    Also I took Education Loan for my daughter and started paying interest to bank. Under which section the tax rebate on interest amount comes and Interest limit for FY 2016-17 if any.

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