These days, medical expenses can bore a hole in your pocket, especially if you are a senior citizen, a super senior citizen, or someone with dependent senior citizens.

Medical insurance premiums are typically high for senior citizens, which makes it difficult for them to have a good health insurance cover.

However, the Income-tax Act, 1961 provides some respite in this matter. There is a provision for claiming deduction for medical expenditure incurred, and medical premium paid by senior citizens or their children, under Section 80D of the Act.

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What Is Section 80D?

Section 80D allows senior citizens to claim deductions in their income tax filing. It reduces their tax liabilities and increases tax savings. A senior citizens who has incurred any expense on any medical treatment can get a deduction up to Rs 50,000. If an individual aged less than 60 years of age spends money on their parents who are senior citizens, they can claim the same deduction for up to Rs 50,000. They also get a deduction of Rs 5,000 for preventative health check-ups.

Tax Deduction Allowed Under Section 80D

For individuals who have a family policy which does not include any senior citizens, they can claim a total of Rs 25,000 as tax deduction. If a senior citizen has a separate plan and pays his/her own premium, he/she can claim a deduction of Rs 50,000.

But if an individual has a family policy that includes senior citizens, he/she can claim a deduction of Rs 75,000 as insurance policy for family and parents. However, if the plan covers the entire family of individuals, including parents who are all below 60 years of age, the deduction limit is capped at Rs 50,000. If an individual pays premium for self, family and their parents above 60 years they can claim a deduction of up to Rs 1 lakh.

Hindu Undivided Families (HUFs)

Individuals or HUFs can claim a deduction for medical insurance premiums paid in the financial year under Section 80D, including top-up health plans and critical illness plans. This deduction is over and above the Rs 1.5 lakh limit claimed under Section 80C and can be claimed if taxes are paid under the old tax regime.

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Medical Conditions For Eligibility For Deductions

Deductions can only be claimed for the listed illnesses and diseases, and not for those which are not mentioned. Expenses for consultation, medication, hospitalisation, and medical devices, such as a pacemaker or hearing aid, all are eligible for deduction under Section 80D.

Section 80DDB lists life altering diseases, such as Parkinson’s, AIDS, cancer among some others that qualify for tax deductions.

Under this section, those over 60 years of age can claim deduction up to Rs. 1 lakh, whereas those under 60 years of age can claim deductions of Rs 40,000 for diseases listed under the section.