How Senior Citizens can save tax with Medical Bills under Section 80D?

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Though diseases don’t come announced, and they can affect an individual at any age, there are certain health conditions that are primarily related to old age. Thus, getting the full benefits of medical insurance becomes even more necessary for senior citizens. On that note, let’s take a look at the tax deductions they can avail of under Section 80D.

What are the tax deduction limits for the senior citizens to claim medical bills?

The Income Tax Act lets you claim a deduction of INR 50,000 (for FY 2021-22) on medical expenditure faced due to the healthcare of the senior citizens (parents who are eligible) in one financial year. Thus, in case your age is sixty years and above, you are allowed to claim a tax deduction of up to INR 50,000 on the medical expenses or the medical insurance premium.

Given below is a table that will help you better understand the tax deductions for senior citizens under Section 80D:

The person paying the medical insurance premium Tax deductions under 80D for individuals Tax deductions under 80D for senior citizens Highest tax deductions under Section 80D
When the senior citizen pays the premium N/A INR 50,000 INR 50,000
When an individual aged below 60 years pays the premium but the parents are senior citizens INR 25,000 INR 50,000 INR 75,000
When a senior citizen pays the premium and also the premium for his/her senior citizen parents INR 50,000 INR 50,000 INR 1,00,000

Limits of tax deduction under Section 80D in various scenarios

Under Section 80D, an individual is allowed to claim tax deductions of at least INR 50,000 on the amount spent on the preventive health check-ups, premium for medical insurance, medical expenses for the individual and his/her family members, and the CGHS (Central Government Health Scheme) if the person is a senior citizen.

But the highest tax deduction limitation for such preventive check-ups is INR 5,000 for every financial year. The limit for preventive health check-ups comes under the comprehensive tax deduction limits of INR 50,000 for senior citizens.

Are all medical expenditures eligible for tax deductions under Section 80D?

Any medical expenditure or disease that is not defined in the Income Tax Act will not be covered for tax deductions under Section 80D. But the expenditure incurred on consulting doctors, buying medicines and medical devices, hospitalization, etc., will be taken into account as per the new amendments made by the government.

Furthermore, several other diseases and medical conditions are covered under Section 80DDB. Such diseases include cancer, AIDS, Parkinson’s disease, and so on. While a non-senior citizen gets a deduction of INR 40,000 in such cases, a senior citizen can claim up to INR 1,00,000 under this section.

Make sure you keep the tax deductions in mind to make the most of your medical insurancepolicy. You can talk to your insurer to know more about this.