Section 26 - Amendment of section 80D - Finance Act, 2018

Amendment of section 80D 26 . In section 80D of the Income-tax Act, with effect from the 1st day of April, 2019,- (A) in sub-section (2),- (i) for the words thirty thousand rupees wherever they occur, the words fifty thousand rupees shall be substituted; (ii) in the first proviso occurring after clause (d), the word very shall be omitted; (B) in sub-section (3),- (i) for the words thirty thousand rupees at both the places where they occur, the words fifty thousand rupees shall be substituted; (ii) the word very shall be omitted; (C) in sub-section (4),- (i) the words or a very senior citizen shall be omitted; (ii) for the words thirty thousand rupees , the words fifty thousand rupees shall be substituted; (D) after sub-section (4), the following sub-section shall be inserted, namely: (4A) Where the amount specified in clause (a) or clause (b) of sub-section (2) or clause (a) of sub-section (3) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each of the relevant previous year, a deduction equal to the appropriate fraction of the amount. Explanation.-For the purposes of this sub-section,- (i) appropriate fraction means the fraction, the numerator of which is one and the denominator of which is the total number of relevant previous years; (ii) relevant previous year means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effect or be in force. ; (E) in the Explanation occurring after sub-section (5), clause (ii) shall be omitted.