Dear Friends Let us discus the facts about:
1. Whether the MA deducted from salary towards the payment of premium of WBHS-08 can be deducted U/S 80D (Budget: 2013-14)
2. If “Yes”- Discuss details.
3. If “No”-Why ? We are foregoing the amount to get the benefit of treatment for our Family members through insurance, in other words we are paying this amount for “Medical Insurance”. The amount is paid through Non-cash method.
Finance Bill 2013 seeks to provide the following: “Deduction for contribution to Health Schemes similar to CGHS:
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.
It has been noticed 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 proposed to amend section 80D, 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.
This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
[Clause 12]”
Now the question is, whether WBHS is at par with CGHS! Whether the expression “payment or contribution made by the assessee to such other health scheme” is applicable to WBHS beneficiaries!In a nutshell, whether the WBHS is covered by this provision!
