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80d dedcution on accrual basis or payment basis

Others 1503 views 7 replies

Writick Garodia

Employed

42 Points Joined December 2011

Hi,

I need a clarification on the deduction of 80D under CH VIA deduction that, whether the deduction allowed to be claimed on accrual basis or on payment basis.

Eg. If a medical insurance is taken on 1st of October 2015 for 1 year and the premium paid is Rs. 12000 valid till september 2016. So the dedcution under 80D for the FY 2015-16 & AY 2016-17, dedcuction allowable is RS 12000 or Rs. 6000 i.e from October 2015 to March 2016.

Also, if the medical insurance is provided by the employer, is there any deviation int he calculation of deduction under 80D.

Thanks in advance..

Replies (7)

Kiran. S

CTO

745 Points Joined August 2015

It is anologous to PPF. If you make PPF on 30th march 2015 then you have to take full pay for AY 2015-16. Like wise the entire Payment in FY 2014-15 is valid for AY2015-16 only. i hope I am correct on this.

Ashok J

CA Final

880 Points Joined December 2009

Amt paid during a financial yr can be claimed in the same yr

CA.Deepu Rani Bisht

Chartered Accountant

26 Points Joined September 2015

deduction shall be claim on payment basis.

Miss Rinkal

Student

1309 Points Joined January 2009

Deduction is to be claimed when payment is made and it has no relevance with the validity period.

jaya krishna

Chartered Accountant

262 Points Joined April 2015

Deductions under section 80 c,80ccc,80ccd(1), 80 ccg, 80 d, 80 Dd, 80 ddb,80 e, 80 g are allowed payment basis 80 ee,80 gg can claim due basis

jaya krishna

Chartered Accountant

262 Points Joined April 2015

80ee, 80gg May be not due basis.

Miss Rinkal

Student

1309 Points Joined January 2009

@ Jaya krishna

Sec 80 EE is on payable I.e accrual basis but Sec 80GG is on the basis of least of the 3 conditions. However in it 1 condition has mentioned rent on paid basis and not on payable basis