In today’s world, skyrocketing medical expenses can drain savings and create financial stress during already challenging times. Fortunately, the Indian government offers a practical relief measure through Section 80D of the Income Tax Act—a provision that not only encourages proactive healthcare planning but also rewards you with tax deductions on health insurance premiums, preventive check-ups, and select medical expenses.
Whether you’re buying a new policy or renewing an existing one, understanding how to claim benefits under Section 80D can help you save up to Rs. 75,000 annually—without compromising on the quality of care.
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How to claim medical expenses under Section 80D
Section 80D provides tax deductions for medical insurance premiums and certain medical expenses for senior citizens. Specifically, individuals can claim medical expenses for themselves, their spouse, children, and parents. To benefit from these deductions, one must understand the criteria and process for claiming medical expenses.
First, it’s important to note that the deduction is available only when you or your family members are not covered by a medical insurance policy. In cases where health insurance is not available or insufficient for senior citizens above 60 years of age, you can claim medical expenses up to a specific limit under Section 80D. The deduction limits vary based on the age of the insured and the family members covered under the medical expense claim.
To claim medical expenses under Section 80D, ensure that the expenses are for treatments within India and paid through non-cash modes such as credit/debit cards, net banking, or cheques. Cash payments are not eligible for deductions.
Who can claim medical expenses under 80D?
Not everyone is aware that even uninsured medical expenses can be claimed under Section 80D—especially when it involves senior citizens or dependent family members. Here’s a simplified breakdown of eligible individuals:
Self: If you paid for your own medical expenses and don’t have a health insurance policy, you can still claim a deduction under Section 80D.
Spouse and dependent children: Medical costs incurred for your spouse or dependent kids are also eligible—only if they’re not already covered by a policy.
Parents (Senior or not): Whether dependent or not, medical expenses for your parents can be claimed, especially if they are above 60 and uninsured.
Senior citizens (60+ years): You can claim up to ₹50,000 annually for expenses on uninsured senior citizens—this includes self, spouse, or parents.
Note: All payments must be made through non-cash modes like UPI, debit/credit card, net banking, or cheque to qualify for tax deductions.
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Read more: Tax benefits of health insurance
How to calculate tax deductions for medical expenses under 80D
Understanding the calculation of tax deductions under Section 80D is essential to maximise your benefit. Section 80D covers two main aspects: medical insurance premiums and medical expenses for senior citizens.
1. Medical insurance premiums:
The deduction available for medical insurance premiums is capped at Rs. 25,000 for individuals below 60 years of age and Rs. 50,000 for senior citizens. This amount includes premiums paid for self, spouse, children, and parents.
2. Medical expenses for senior citizens:
If you or your parents are senior citizens and not covered under any health insurance policy, you can claim medical expenses up to Rs. 50,000. If both you and your parents fall into this category, you can claim up to Rs. 1 lakh in deductions.
3. Preventive health check-ups:
Section 80D also allows for a deduction of up to Rs. 5,000 per year for preventive health check-ups. This amount is included within the total deduction limit of Rs. 25,000 or Rs. 50,000.
