Demand u/s 143(1) for claiming 80D deduction

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A user received a tax demand notice under section 143(1) for their senior citizen mother, as the IT department disallowed a £5,000 claim for preventive health check-ups. The user believes this claim is valid under Section 80D rules for FY 2019-20, especially since their mother has no health insurance. Experts confirmed that while medical expenditure is allowed, preventive health check-ups up to £5,000 are also permissible. The recommended course of action is to file a rectification under section 154 to resolve the issue.

Vaibhav

Vaibhav (Querist)
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24 July 2022 Hello Experts,

My senior citizen mother has received a tax demand of Rs. 1200 u/s 143(1) for FY 2019-20.

Reason - she claimed total 10k deduction under 80D, of which 5k under Preventive Health check-up and 5k under Medical Expenditure, since she has no health insurance. However in their demand, IT dept. have not considered 5K Preventive Health check-up.

However as per 80D rules for FY 2019-20, I feel my Mother was eligible to claim as above. So can anyone advise why IT have disallowed the above 5K? Or if demand is auto-generated due to some technical error, then what should we do to resolve it?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 July 2022 Rs 5000 for health checkup is allowed.
No medical expenditure is allowed.
If health checkup is disallowed file rectification.

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Vaibhav

Vaibhav (Querist)
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24 July 2022 Seetharaman ji. you said medical expenditure is not allowed. However as per 80D rules for FY 2019-20, one can claim medical expenditure on the health of Resident senior citizen and very senior citizen for whom no amount is paid to effect/keep in force an insurance on the health.

Reference - https://www.incometaxindia.gov.in/Pages/tools/deduction-under-section-80d.aspx

So kindly clarify why you feel medical expenditure is not allowed in my mother's case? Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 July 2022 I agree with you such medical expenditure is allowed.
File rectification under section 154.

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Vaibhav

Vaibhav (Querist)
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24 July 2022 Thank you Seetharaman ji.

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