Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
26 December 2022Dear Forum
1) Tax payer has paid health insurance premium for FY 22-23, 23-24 and 24-25 in FY 22-23. Will he be entitled to deduction under section 80D for all three payments or only for FY 22-23 ?
2) Employee is leaving the employer on 31st December 2022. He has paid Rs 12,000 premium in August 2022 for FY 2022-23. Will the employer consider full 12,000 as deduction under 80D for calculation of TDS on salary under section 192 or Rs 9,000 ?
Regards,
Asha Kanta Sharma
(Manager - Finance & Accounts)
(10529 Points)
Replied 26 December 2022
1) We can claim proportionate deduction for each current and upcoming FY
2) The employer will take full deduction under section 80D @ Rs. 12K
Mitali
(Finance Professional)
(11046 Points)
Replied 26 December 2022
-> If an individual taxpayer has paid health insurance premiums for the financial years (FY) 22-23, 23-24, and 24-25 in FY 22-23, they will be entitled to claim a deduction under section 80D for the premiums paid for all three financial years. The deduction will be available in the financial year in which the premiums were actually paid, which in this case is FY 22-23.
-> if the employee has paid a premium of Rs. 12,000 in August 2022 for the financial year 2022-23 and is leaving on 31st December 2022, the employer will consider the full amount of Rs. 12,000 as a deduction under section 80D for the purpose of calculating TDS on salary.
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