Senior Citizens' Health Insurance Tax Benefits Under Section 80D
In this era of burgeoning medical expenses, not having health insurance can hit your savings dearly. And that’s not the single reason for having health insurance. Besides protecting the savings during a medical emergency, Health Insurance also provides tax benefits to the insured under section 80D of the Income Tax Act 1961.
A Senior Citizen Health Insurance Plan take these benefits a step further. Read on to know more about the manifold tax benefits you can avail yourself of with a Senior Citizen Health Insurance Plan.
Who is Senior Citizen?
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.
What are the Tax Benefits with Health Insurance u/s 80D for Senior Citizens?
Below are the Tax Benefits under Section 80D for a Senior Citizen Health Insurance Policy:
- The premium that you pay towards your health insurance is tax deductible under Section 80D of the Income Tax. The limit for this deduction is ₹25000/- which can be extended to ₹50,000 if the premium payee is a senior citizen.
- With this benefit in place, an individual can enjoy a deduction of up to ₹75000, given both parents are senior citizens.
- In rare cases, when the policyholder is also above 60 years of age and has further insured his parents under health insurance, the deductible amount can be up to ₹1,00,000 (₹50000 for policyholder + ₹50000 for parents, both of whom are senior citizens).
Scenarios on Tax Saving u/s 80D Deductions for Senior Citizens
| Scenario | Deduction under 80D |
|---|---|
| Self and Family (All members below 60 years) | ₹25,000 |
| For Self and Family + Parents (All members below 60 years) | ₹25,000 + ₹25,000) = ₹50,000 |
| For Self and Family (all members below 60 years) + Senior Citizen Parents | ₹25,000 + ₹50,000 = ₹75,000 |
| For Self and Family (with eldest member above 60 years) + Senior Citizen Parents | ₹50,000 + ₹50,000) = ₹1,00,000 |
Documents Required to Claim Tax Deduction for Senior Citizens u/s 80D
To claim tax deduction under 80D, you must submit the following documents:
- The receipt for the premium paid towards the health insurance policy.
- The health insurance policy document mentions the name of the members insured, their ages and their relation to the proposer.
- If parents are covered, check for an 80D certificate from the health insurance provider.
Can Senior Citizens Save Tax with Medical Bills u/s 80D?
The golden years of an individual’s life are precious and should be spent without having to worry about any financial implications, especially when it comes to 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 discussed tax benefits on the health insurance policy, here are a few more cases where you can save tax by caring for your health.
- You can claim tax benefits on annual preventive check-ups up to ₹5000/-.
- The expenses incurred for the treatment of critical illnesses are allowed for tax deduction up to ₹1,00,000.
- If you purchase a Life Insurance Policy with Critical Illness or any health-related rider, you can avail of dual tax benefits- the premium paid towards the Life Insurance is deductible under Section 80C and the premium paid towards the Rider is tax exempted under section 80D.
- Depending on the severity of their condition, differently abled people can claim a rebate of up to ₹75000 p.a. if they have a disability of 40% or more. In case of individuals with 80% disability, this can go up to ₹1,25,000. These deductions can also be availed of by individuals who oversee taking care of differently abled dependents, given that the dependent, in this case, has not already availed of this tax benefit.
- Section 80DDB of Income Tax exempts individuals or HUFs (Hindu Undivided Family) from the medical expenses or treatment incurred by the individual for themselves or their dependents.
In this case, the amount of deduction that can be claimed is as follows:
In this case, the amount of deduction that can be claimed is as follows:
| Age of the Person availing Medical Treatment | Tax Deduction Amount |
| Less than 60 years | ₹40000/- or actual expenses, whichever is less |
| Senior Citizens- 60 years and above | ₹100000/- or actual expenses, whichever is less |
| Super Senior Citizens- 80 years and above | ₹100000/- or actual expenses, whichever is less |
A Senior Citizen Health Insurance Plan offers not just tax benefits but a plethora of other benefits too like providing a wholesome coverage, covering expenses like day care expenses, domiciliary treatment expenses, providing a range of add-ons and lots of other benefits that not just help you save your hard-earned money but also make your access to the best healthcare a lot easier.
FAQs about Health Insurance Tax Benefits for Senior Citizens
Is there any Tax Benefit Available for Super Senior Citizens i.e., the individuals above 80 years of age, with Respect to Health?
Individuals who are 80 and above and do not have their own health insurance policy can claim a deduction of up to ₹50,000 while availing medical treatments and health check-ups, under section 80D of the IT Act.
Are 80D Deductions Available Under the New Tax Regime?
No. The New Tax Regime does not provide the 80D Tax Exemption.
Is Proof Required for 80D for Senior Citizens?
Although it is not required by the Income Tax Act Department to keep a record of all costs made during the year, such as receipts for health insurance premium payments, medical bills, medical expenses, test results, etc., but it is advised to do so.
What is 80D Medical Expenditure Limit for Senior Citizens?
In a financial year, a deduction of Rs 25,000 is permitted under Section 80D. Senior persons are eligible for deductions up to Rs. 50,000.