Why is there such a peculiar rule regarding tax benefit?

In India, if one pays the mediclaim premium through a cheque then one is entitled to get tax benefit but if the same is paid in cash, one does not get the benefit. Whys is there such a peculiar rule?

4 Replies to “Why is there such a peculiar rule regarding tax benefit?”

  1. Rules are Rules you can’t do anything, you have to abide with them..Better option is drop a mail to Finance minister regarding this 🙂 🙂 🙂

  2. if you pay bill through cheque,it indicates that you are not deceiving the government… because every bank is accountable to the government….but if you pay in the form of cash,it may be black money( i.e it is our policy makers perspective)…so that only government encourages paying through cheque….

  3. This is more to make the tax payer accountable for the outgo on which he gets tax benefit. A crossed cheque is more traceable to the payer than the cash.


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