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)