TaxTMI 
TaxTMI 
TaxTMI 
HEALTH INSURANCE AND EXPENSES
In some of provisions of the Income-tax Act, 1961 small relief is allowed to individual and HUF assesses for health insurance popularly known as medical insurance / medi-claim and some expenses are allowed for preventive health check-up, expenses for treatment.
These provisions are found in S.80D, 80DD, 80DDB. On reading of these provisions we find them highly complex and rigid. Complexity is due to different limits, conditions, provisos and explanations etc. found in these provisions.
These provisions are for general public welfare and need to be simple to avail.
There are different conditions provided for these deductions. For example, for preventive health check-up any mode of payment, including cash payment is permitted whereas for medical expenses, cash payment is not allowed. This is in complete disregard to ground reality. When a person or his relative is sick, first priority is to get treatment and for that make payment to doctors and medical stores. For general public it is not possible to avoid cash payment in such situations. Therefore, medical expenses for treatment should also be allowed even if payment was made in cash.
The provisions are very complex and need to be simplified. For ease of general public who file Returns of Income provisions of this nature should be abundantly clear, unambiguous and easy to avail.
The provision for providing minor relief by way of a deduction, for payments to be made in difficult conditions of sickness of assessee or his dependent or relative etc. should be easy to avail in view of ground reality and situations in course of medical treatment.
Honorable FM is requested to thoroughly simplify provisions which are intended to provide some relief to general public who pays income tax.