In the current year Budget, a new Tax Benefit was introduced to provide the tax benefit for Senior or Very Senior Citizen who does not have Medical Insurance coverage. If there is medical coverage, U/s 80D, employee will get Medical Expenditure to the extent of INR 50,000/-
To bring in better control we have introduced separate Grouping 80D inside Deduction Under Chapter VIA after Section 80U declaration, with a brief explanation on the screen for better understanding. Below is the newly grouped Screenshot for ready reference
Below are the enhancements implemented in the system:
- 80D has been moved to separate Grouping after 80U under Chapter VIA
- A check box introduced to identify the Sr Citizens for Dependent
- Merged 2 lines items for Dependent to single line item
- Basis the Check Box system will automatically provide the allowed tax benefit for Sr. Citizens
- Introduced Preventive Heath Checkup line item for Dependents
- A new line item introduced to capture the declaration / proof for medical expenditure for Sr/Very Sr Citizen Dependents without Medical Insurance Coverage
- On Screen Explanation provided for better understanding
- Data migration has been completed into the new line items and this will not have any impact on the Income Tax Calculation for any employee.
- We have completed validation from our end for the migration and request you to verify from your end before October Payroll to avoid any issues during Payroll run.
- In both IT Excel and IT PDF, you will see all the values for the financial year 2020-21 under 80D in the new line items only
Migration to new line items is as follows
Existing Line Item Details | New Line Item | Check Box |
Medical Expenditure for Senior Citizen | Medical Expenditure Dependents |
|
Medical Insurance Dependent | Medical Insurance Dependent |
|
Medical Insurance for Senior Citizen | Tag enabled for Senior Citizens | |
Medical Insurance Premium paid through Salary | Medical Insurance Premium paid through Salary |
|
Medical Insurance Self | Medical Insurance Self |
|
Preventive Medical Check Up | Preventive Medical Check Up |
|
| Preventive Medical Check Up Dependents |
|
| Medical Expenditure Self (Sr Citizen Only) |
|