7 min read
Updated on Oct 25, 2023
Many taxpayers are unaware of the fact that medical bills can be claimed u/s 80D. However, when you buy a medical policy for a senior citizen or an elderly above the age of 60 years, it attracts tax deduction on the premium paid as per section 80D of Income Tax Act. Hence, the medical or health insurance policies bought for your parents or bought by the elderly allow tax benefits of up to INR 50,000 per financial year. So, as compared to tax benefits earned by non-senior citizens who are below 60 years, the medical expense deductions under the income tax act for senior citizens is better.
In this post, let us discuss what is Section 80D and the tax benefits received under 80D medical expenditure in detail.
Section 80D is a section of the Income Tax Act of India under which every individual and HUF are eligible to claim a tax deduction on the annual premium paid towards their health insurance policy. This deduction applies to every health insurance policy available.
Here’s a table to make you understand the tax deductions under section 80D better:
|Premium paying person||Tax Deduction u/s 80D
(Individuals below 60 year)
|Tax Deduction u/s 80D
(For Senior Citizens)
|Total Tax Saving u/s 80D (Maximum Deduction)|
|Elderly/Senior Citizens (themselves)||Not Applicable||INR 50,000||INR 50,000|
|Individuals paying separately for own health plans and parents||INR 25, 000||INR 50,000||INR 75,000|
|Senior citizens paying for themselves and their super senior parents||INR 50,000||INR 50,000||INR 1,00,000|
Tax deductions of up to INR 50,000 is available under medical expenditure 80D section for the elderly. This amount can be claimed under various health treatments including preventive health check-ups and health insurance premium payment etc. However, in case of preventive health check-up, the maximum deduction is limited to INR 5000 per financial year, which is included under the overall tax deduction limit of INR 50,000 for senior citizens. The table below shows different scenarios of tax deduction limits under section 80D.
|Category||Maximum Deduction Limit u/s 80D||Maximum Deduction Limit u/s 80D||Maximum Deduction Limit u/s 80D|
|Premium paid for insured, spouse, dependent children & parents (all non-senior citizens)||Premium Paid for insured, spouse and dependent children (non-senior citizens) & parents (senior citizens)||Premium paid for insured, spouse and dependent parents (all senior citizens)|
|Premium paid towards Health Insurance (insured, spouse & children) including INR 5,000 towards preventive health check-up||INR 25,000||INR 25,000||INR 50,000|
|Premium paid towards Health insurance and Preventive Health Check-up (parents)||INR 25,000||INR 50,000||INR 50,000|
|Medical bills of insured, spouse and dependent children||Not Applicable||Not Applicable||Comes under the maximum tax limit of INR 50,000|
|Medical bills for parents||Not Applicable||Comes under the maximum tax limit of INR 50,000||Comes under the maximum tax limit of INR 50,000|
|Maximum Tax Deduction Limit u/s 80D||INR 50,000||INR 75,000||INR 1,00,000|
Also Read: Health Insurance Plans for Senior Citizens
A taxpayer can avail tax deductions for the premiums paid for health insurance under section 80D for him/herself and other family members including spouse, children and parents. Hence, these people are eligible for tax deductions under section 80D medical expenditure .
Besides Section 80D, some medical conditions are covered under Section 80DDB. Under this section, the individuals below 60 years can avail a deduction of up to INR 40,000, while the senior citizens can claim tax deductions of up to Rs 1,00,000.
The tax deductions under section 80D can be availed by policyholders against the health insurance premiums paid towards health insurance plans covering the policyholder and family as well as against plans bought for their senior citizen parents (under the HUF or Individual categories).
The deductions can be availed on premiums paid for health policies bought for only the below-mentioned categories and no one else:
Paying premiums online makes it easy to claim medical expense deduction on your health insurance plan. Try not to use cash payments for paying off premiums. You may use debit or credit card, UPI, net banking, wallets or even cheque to pay off premiums or to pay medical expenses.
In case of preventive checkups, the payment can be done in cash. These checkups are done periodically to stay protected from diseases. Hence, if a medical condition is diagnosed under a preventive health check-up, the right treatment can be availed to cure the condition.
An individual or Hindu Undivided Families can claim a tax deduction u/s 80D for:
There is no such specific list of documents mentioned by the Income Tax Act that is required to claim tax benefits under Section 80D.
However, as a safe practice it is good to save and document every piece of evidence such as medical bills and invoices, diagnostic test reports, documents regarding medical history, doctor’s prescription, etc. for reference purposes.
Hence, you are required to keep the bills and reports of medical expenditure for senior citizen parents safely to avail tax deductions.
A deduction of INR 25,000 is allowed under Section 80D during a financial year. Senior citizens can get a deduction of up to INR 50,000.
The table below explains the deduction amount that an individual taxpayer can avail of:
|Insurance Plan||Deductions (for Self & family)||Deductions (for parents)||Maximum Deduction|
|For insured and family (which include spouse and children below the age of 60)||INR 25,000||–||INR 25,000|
|For insured and family plus parents
(all of them below 60 years)
|INR 25,000||INR 25,000||INR 50,000|
|For insured and family (below 60 years) plus parents (above 60 years)||INR 25,000||INR 50,000||INR 75,000|
|For insured and family plus parents (all of them above 60 years)||INR 50,000||INR 50,000||INR 1,00,000|
|HUF members (below 60 years)||INR 25,000||INR 25,000||INR 25,000|
|HUF members (few members above 60 years)||INR 50,000||INR 50,000||INR 50,000|
You may note that a deduction of INR 5,000 for preventive check-ups is also included within the overall limit of INR 25,000 or INR 50,000 applicable under section 80D.
Let’s take an example to understand it better.
Let’s say, you are a 30-year-old man looking to cover yourself and your mother (a 65-year-old senior citizen). You bought two individual plans for you and your mother at annual premiums of INR 30,000 and INR 35,000 respectively.
So, can you calculate the amount that you are eligible for tax deduction under section 80D?
Yes, right! As an individual below 60 years, you can avail of a deduction of INR 25,000 under 80D and for the policy you bought for your mother (a senior citizen), you can avail of a deduction of INR 50,000. So, that makes the total deduction of INR 60,000 that you can avail of (including INR 25, 000 for your policy and INR 35,000 for your mother’s policy)
To encourage people in India to take up regular health check-ups every year, the government introduced tax deductions on health check-ups. Regular health check-ups are necessary to identify and prevent serious ailments by detecting them at an early stage.
Under section 80D, an insured can avail of a deduction of up to INR 5,000 for preventive health check-ups (irrespective of the amount you spent on the check-up). This deduction will be included within the overall deduction limit of INR 25,000 or INR 50,000, as applicable.
An insured can claim this deduction for him/herself, his/her spouse, dependent children, and parents.
To Sum Up
So, as seen in the post above, the tax benefits received under section 80D for senior citizens can be availed to save enough on tax each financial year. Hence, the next time you file for income tax returns, don’t forget your medical bills. Moreover, if you have parents who are senior citizens or you yourself is a senior citizen paying health insurance premium, you can claim for such expenses while filing for income tax returns.
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Yes. Section 80D allows the policyholder to have tax benefits by claiming health expenses incurred on insured, spouse, dependent children and parents.
Under Section 80D, the policyholder gets a deduction for preventive health check-ups of up to INR 5,000. This deduction is included within the total limit of INR 25,000 for policyholders below 60 years. In case of senior citizens, the deduction available is INR 50,000 on medical expenses.
The policyholder can claim this deduction on medical treatments incurred on the policyholder, spouse, dependent children and parents.
The highest deduction that can be claimed by senior citizens in a fiscal year is INR 50,000. To avail tax deduction, it is better not to pay medical bills using cash as cash is not evaluated or taken into consideration by insurance providers. Hence, it is better to pay via card, online wallets or net-banking etc.
The medical bills are applicable for tax deductions. Thus, the taxpayer can directly make a claim by filling up the tax deduction form for medical exemptions.
To prove your medical expenses, keep a record of receipts of medical expenses, hospital bills, other medical documents and bills which you can show as proof of medical expenses. Further, you must also keep record of the health insurance premium receipts that you are paying towards your as well as your parents health insurance to claim under Section 80D.
Section 80D allows the policyholder to save tax by claiming medical insurance premium and other medical expenses incurred on self, spouse, dependent children and parents. If you are willing to claim for medical expenses under this section for elderly above 60 years old, you have to give proof of the person's age to be eligible to claim the medical expenses.
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