Under the existing provisions of section 80D, deduction in respect of premium paid towards a health insurance policy upto a maximum of Rs. 15,000 is available for self, spouse and dependent children. A further deduction of Rs. 15,000 is also allowed for buying an insurance policy in respect of dependent parents. The deduction is enhanced to Rs. 20,000 in both cases if the person insured is of age of 65 years or above.

The Central Government Health Scheme (CGHS) is a medical facility available to serving and retired Government servants. This facility is similar to the facilities available through health insurance policies.

It is, therefore, proposed to also allow deduction in respect of any contribution made to CGHS by including such contribution under the provisions of section 80D. The deduction will be limited to the current aggregate as mentioned in the section.

This amendment is proposed to take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-12 and subsequent years.

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0 responses to “Budget 2010-11: Deduction in respect of contribution to the Central Government Health Scheme”

  1. satya narayan dash says:

    i need plz explain is it necessary to deduct TDS on water supply. if yes then under which section of IT act.

    regards

  2. Prasanth says:

    It s mentioned i n your above article that ‘further deduction of Rs. 15,000 is also allowed for buying an insurance policy in respect of dependent parents’

    It is not rwequired that the parents to be dependent.

    Read more: https://www.taxguru.in/budget-2010/budget-2010-11-deduction-in-respect-of-contribution-to-the-central-government-health-scheme.html#ixzz0gtc2y0yH

  3. Ankit Mittal says:

    If the amendment is effective from 01.04.2011 then how it is applicable from AY 2011-12????

  4. captainjohann says:

    Sir,
    Thanks for this info. I am 70 years old and how it will benefit me who is a CGHS pensioner?

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