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Ageing brings about many changes in the body and makes senior citizens prone to both physical and mental health conditions. Hence, if you are in your golden years, make sure you take good care of your well-being and opt for timely healthcare for quicker recovery.
If you are worried about the bills, you can claim tax refunds of up to Rs 50,000 under Section 80D of the Income Tax Act, 1961.
Moreover, Section 80D also allows seniors to claim tax refunds on their Mediclaim policy or health insurance premiums. A health plan ensures better financial protection during medical emergencies, so investing in one can secure your health and finances. Read on to learn about the tax deductions that senior citizens can claim on their medical bills under Section 80D.
Tax deductions available for senior citizens under Section 80D
If you are a senior citizen, you can claim the following tax deductions on your medical bills under Section 80D of the Income Tax Act —
1. Deductions on health insurance premiums: If you are covered under health insurance, you can claim a deduction of Rs 50,000 on the premiums you have paid towards your senior citizen’s health insurance policy. You can claim this refund annually while filing your income tax returns. This can ease your financial burden and help you keep your insurance policy active without worrying about the premiums.
Here’s how tax refunds work in
health insurance for senior citizens:
- Suppose the premium of your senior citizen’s health plan is Rs 30,000. In this case, you can claim a refund of the entire amount under Section 80D.
- Suppose the annual premium of your health plan is Rs 60,000. In this case, you can claim a maximum refund of Rs 50,000.
2. Deductions on medical expenses: If you are not covered under health insurance, you can claim a deduction on your medical expenses. These may include doctor’s consultation bills, the cost of diagnostic tests and prescription medicines, etc. You can claim a maximum deduction of Rs 50,000 on your medical bills.
3. Deductions on preventive health check-up bills: Section 80D also allows tax deductions of up to Rs 5,000 on preventive healthcare bills. However, you must submit the bills to claim this deduction.
The below table will help you understand the maximum tax deductions allowed under Section 80D of the Income Tax Act.
| Policyholders | Maximum tax deduction for self and family | Maximum tax deduction for parents | Maximum tax deduction on preventive health check-up bills | Total deduction under Section 80D |
| Self and family (all below 60 years of age) | Rs 25,000 | THAT | Rs 5,000 | Rs 25,000 |
| Self, family and parents (all below 60 years of age) | Rs 25,000 | Rs 25,000 | Rs 5,000 | Rs 50,000 |
| Self and family (below 60 years of age) and parents (senior citizens) | Rs 25,000 | Rs 50,000 | Rs 5,000 | Rs 75,000 |
| Self, family and parents (all above 60 years of age) | Rs 50,000 | Rs 50,000 | Rs 5,000 | Rs 1,00,000 |
| HUF or Hindu Undivided Family (all members below 60 years of age) | Rs 25,000 | Rs 25,000 | Rs 5,000 | Rs 25,000 |
| HUF (at least one member is above 60 years of age) | Rs 50,000 | Rs 50,000 | Rs 5,000 | Rs 50,000 |
Tax deductions under Section 80D – Points to remember
Here are some points to keep in mind when claiming tax deductions on your health insurance premiums and medical bills under Section 80D:
- Health insurance premiums should be paid in any mode other than cash. For example, you can pay them through your debit card, credit card, internet banking, cheque, or demand draft.
- Preventive healthcare bills paid in cash are eligible for tax deductions.
- The maximum tax deductions senior citizens can claim under Section 80D is Rs 50,000. They can claim deductions on their health insurance premiums and preventive healthcare bills. If they are not covered under health insurance, they can claim a tax rebate on their medical expenses.
- If the son/daughter pays health insurance premiums and medical bills for his/her parents who are senior citizens, he/she can claim tax deductions on the same while filing his/her income tax returns.
How to claim tax deductions under Section 80D smoothly
The following tips can help you claim tax deductions under Section 80D effortlessly —
1. Check eligibility: Before filing your income tax returns, check your eligibility to claim deductions under Section 80D. To claim a deduction of up to Rs 50,000 on your medical bills or health insurance premiums, you must be a resident Indian and over 60 years of age. Moreover, you must pay health insurance premiums and medical bills through the bank.
2. Understand the deductions you can claim: The following are points that you must keep in mind —
- You can claim tax deductions on your health insurance premiums and preventive healthcare bills.
- If you are not covered under health insurance, you can claim tax deductions on your medical bills.
- If your son/daughter pays your health insurance premiums or medical bills, he/she can claim a rebate while filing his/her income tax returns.
3. Keep bills and receipts handy: Make sure you have your medical bills and health insurance premium receipts handy while filing your income tax returns. You may have to submit photocopies of these for verification.
Conclusion
To sum up, the tax deductions under Section 80D of the Income Tax Act can help you manage your healthcare expenses efficiently. With the option to claim a rebate of up to Rs 50,000 for a Mediclaim policy or health insurance premiums, you can stay covered under a comprehensive health plan without worrying about hefty premiums. However, remember to pay policy premiums through the bank to claim tax deductions. If you are not covered under health insurance, you can claim deductions on your medical bills and ease your financial worries.
FAQs
1. What maximum tax deduction is available for senior citizens under Section 80D?
Under Section 80D of the Income Tax Act, senior citizens can claim a maximum deduction of Rs 50,000 on their medical bills and health insurance premiums.
2. Can children claim tax deductions on behalf of dependent parents?
If the son/daughter pays health insurance premiums or medical bills for his/her parents above 60, he/she can claim a tax rebate of up to Rs 50,000 while filing his/her income tax returns. The same is available under Section 80D of the Income Tax Act.
3. Can I claim a tax deduction on medical bills?
You can claim a tax deduction on medical bills only if you are not covered under health insurance. Moreover, you must pay your medical bills in any mode other than cash and have valid bills and receipts handy to claim this deduction.
4. Can I claim tax deductions on multiple health insurance policies?
Yes, you can claim tax deductions on multiple health plans. However, as a senior citizen, you can claim a maximum deduction of Rs 50,000 on one or more health insurance policies.
5. What maximum tax deduction can senior citizens claim on their preventive healthcare bills?
Senior citizens can claim a maximum deduction of Rs 5,000 on their preventive healthcare bills. However, this is included in the maximum deduction of Rs 50,000 available under Section 80D.
Note: The above information is for illustrative purposes only. For more details, please refer to the policy wording and prospectus before concluding the sales.
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