If you are worried about the bills, you can claim a tax refund of up to Rs 50,000 under Section 80D of the Income Tax Act, 1961. Moreover, Section 80D also allows senior citizens to claim a tax refund on their expenses. Mediclaim Policy or health insurance premium. A health plan ensures better financial protection during medical emergencies, so investing in it can secure your health and finances. Read on to know how senior citizens can claim tax deductions 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. Deduction on health insurance premium: If you are covered under health insurance, you can claim a deduction of Rs 50,000 on the premium paid for your senior citizen health insurance policy. You can claim this refund annually while filing your income tax returns. This can reduce your financial burden and help you keep your insurance policy active without worrying about the premium.
Here’s how a tax refund works Health Insurance for Senior Citizens,
- Suppose your senior citizen health insurance premium 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, the maximum refund you can claim is Rs 50,000.
2. Deduction on medical expenses: If you are not covered under health insurance, you can claim a deduction on your medical expenses. This may include doctor’s consultation bills, diagnostic tests, and cost of prescription drugs, etc. You can claim a maximum deduction of Rs 50,000 on your medical bills.
3. Deduction on preventive health check-up bills: Section 80D also allows a tax deduction of up to Rs 5,000 on preventive healthcare bills. However, you need to submit the bill to claim this deduction.
The table given below will help you understand the maximum tax deduction allowed under Section 80D of the Income Tax Act.
Tax Deduction under Section 80D – Things to Remember
Here are a few points to keep in mind while claiming tax deduction on your health insurance premium and medical bills under Section 80D:
- Health insurance premiums must be paid in a mode other than cash. For example, you can pay them via your debit card, credit card, internet banking, cheque or demand draft.
- Preventive health care bills paid in cash are eligible for a tax deduction.
- Senior citizens can claim a maximum tax deduction of up to Rs 50,000 under Section 80D. They can claim deductions on their health insurance premiums and preventive healthcare bills. If they are not covered under health insurance, they can claim tax exemption on their medical expenses.
- If the son/daughter pays the health insurance premium and medical bills for his/her senior citizen parents, he/she can claim tax deduction on the same while filing income tax return.
How to easily claim tax deduction under Section 80D?
The following tips can help you claim tax deduction under Section 80D easily –
1. Check Eligibility: Before filing 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 premium, you must be a resident Indian and above 60 years of age. Also, you must pay the health insurance premium and medical bills through a bank.
2. Understand the deductions you can claim: Following are some points that you should keep in mind –
- You can claim tax deductions on your health insurance premiums and preventive health care 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 premium or medical bills, he/she can claim exemption while filing his/her income tax return.
3. KKeep bills and receipts safe: While filing income tax returns, make sure you have the receipts for your medical bills and health insurance premiums. You may have to submit photocopies of these for verification.
conclusion
In short, tax deductions under Section 80D of the Income Tax Act can help you manage your healthcare expenses efficiently. With the option to claim a deduction of up to Rs 50,000 for a mediclaim policy or health insurance premium, you can stay covered under a comprehensive health plan without worrying about the hefty premiums. However, remember to pay the policy premium through a 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.
questions to ask
1. What is the maximum tax deduction available for senior citizens under Section 80D?
Senior citizens can claim a maximum deduction of Rs 50,000 on their medical bills and health insurance premium under Section 80D of the Income Tax Act.
2. Can children claim tax deductions on behalf of dependent parents?
If a son/daughter pays health insurance premium or medical bills for his/her parents above the age of 60, he/she can claim a tax exemption of up to Rs 50,000 while filing income tax returns. This is available under Section 80D of the Income Tax Act.
3. Can I claim tax deduction on medical bills?
You can claim tax deduction on medical bills only if you are not covered under health insurance. Also, you must pay your medical bills in a mode other than cash and must have valid bills and receipts to claim this deduction.
4. Can I claim tax deduction on more than one health insurance policies?
Yes, you can claim tax deduction 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 is the maximum tax deduction that senior citizens can claim on their preventive health care 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.
Comment: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sale.
Disclaimer: The above material is non-editorial, and TIL hereby disclaims any and all warranties, express or implied, relating thereto. TIL does not guarantee, verify or necessarily endorse any of the above material, nor is it responsible for them in any way. The article is not investment advice. Please take all necessary steps to ensure that any information and material provided is correct, up to date and verified.
