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As our loved ones age, their health becomes our top priority. However, with the growing years, rising medical expenses can create stress even with the most carefully planned finances.
Access to quality healthcare is not just necessary for senior citizens; it's a right! Thankfully, the government recognizes this need and offers meaningful tax benefits on medical insurance, easing the financial burden.
The tax benefit for health insurance is provided under section 80D of the Income Tax Act 1961. Let’s learn about what are these tax benefits and how much one can benefit from this section.
An individual who is more than 60 years but less than 80 years of age at any time during the financial year is considered a Senior Citizen for tax purposes of that particular year. Furthermore, a person above 80 years of age at any time during the year is regarded as a Super Senior Citizen for that year.
Below are the Section 80D deductions for the Senior Citizen Health Insurance Policy:
Different scenarios are possible considering the various eligibility cases for tax deductions under 80D of income tax.
The table below lists the section 80D tax benefits related to health insurance. It shows the maximum tax deductions for self, family and senior citizen parents. The following deductions apply to all plans designated as 80D medical insurance.
Disclaimer: You can only claim these tax deductions under 80D with the Old Tax Regime. The New Tax Regime does not offer any tax deduction under 80D.
The Income tax department lists no compulsory documents to claim health insurance tax benefits for senior citizens, but here are some documents you can keep handy for claiming the deduction:
Some other documents essential in filing for an ITR include:
Claim section 80D while filing Income Tax is simple. It just requires documentation of the payment made for the insurance premium and health checkups.
The claiming can be done in two ways:
Follow the below steps in case you are filing your ITR:
Yes, senior citizens in India can save taxes on medical expenses under Section 80D of the Income Tax Act. This section allows deductions for health insurance premiums, preventive health check-ups, and medical expenses incurred for any illness.
The golden years of an individual’s life are precious and should be spent without worrying about financial implications, especially in medical emergencies. Thus, any medical bills or the premium paid towards a health insurance policy for senior citizens is eligible for tax deductions u/s 80D.
Other than the above-mentioned tax benefits of a health insurance policy, there are a few more cases where you can save tax by taking care of your senior parent's health.
A maximum of ₹5,000 can be claimed for preventive annual health check-ups within the overall limit of Section 80D. This can include regular health check-ups, certain diagnostic tests, and vaccinations.
Section 80DDB of Income Tax exempts individuals or HUFs (Hindu Undivided Family) from the medical expenses for critical illnesses, such as Cancer, AIDS, or neurological problems for the individuals or their dependents (senior parents).
In this case, the amount of deduction that can be claimed is as follows:
A dependent who is a person with a disability can undergo several expenses related to medical care, checkups, rehabilitation and training. These costs can be claimed under the section 80DD of income tax.
Individuals who oversee the care of differently abled senior citizens can also claim these deductions, provided that the dependent has not already received this tax benefit.
The tax deduction under 80DD can be made based on the level of disability:
Note: The dependent person with a disability must include a disability certificate from the federal and state governments with their tax filings in order to be eligible for this deduction.
Certain exclusions apply to the section 80D of the Income Tax for senior citizens. Remember these points while filing a claim:
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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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