Thursday, March 4, 2010

Contribution to CGHS is deductible u/s 80D for the A.Y. 2011-12.

Deduction for Contribution to Central Government Health Scheme The Central Government Health Scheme (CGHS) is a medical facility available to serving the retired government employees. The CGHS facility is similar to the hospitalization and other healthcare facilities covered under insurance policies issued by health insurance companies.


As per the provisions of the Act, an individual can claim deduction for payment of health insurance premium of Rs 15,000 if the insurance is for himself, spouse and dependant children. The individual will get an additional deduction of Rs 15,000 if the contribution is made for his parents. The deduction in case of a senior citizen is Rs 20,000.




The government has now sought to extend the benefit of deduction to contributions made under the CGHS and is welcome change for the retired government employees. This deduction shall be covered within the overall limit of existing deductions under the Act which was not there earlier.
Source: Economic Times

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