Claim for Medical Expenses Under 80D

In today’s world, medical expenses have become a significant financial burden. As healthcare costs continue to rise, individuals seek ways to manage these expenses without compromising their health. One of the ways the Indian government helps alleviate this burden is through tax benefits under Section 80D of the Income Tax Act.

Section 80D allows individuals to claim tax deductions on medical insurance premiums, also get preventive health check-ups, and medical expenses for specific categories. This article explores how you can claim medical expenses under Section 80D, who is eligible, and what steps are involved in filing a claim.

How to claim medical expenses under Section 80D

Section 80D provides tax deductions for medical insurance premiums and certain medical expenses for senior citizens. Specifically, individuals can claim medical expenses for themselves, their spouse, children, and parents. To benefit from these deductions, one must understand the criteria and process for claiming medical expenses.

First, it’s important to note that the deduction is available only when you or your family members are not covered by a medical insurance policy. In cases where health insurance is not available or insufficient for senior citizens above 60 years of age, you can claim medical expenses up to a specific limit under Section 80D. The deduction limits vary based on the age of the insured and the family members covered under the medical expense claim.

To claim medical expenses under Section 80D, ensure that the expenses are for treatments within India and paid through non-cash modes such as credit/debit cards, net banking, or cheques. Cash payments are not eligible for deductions.

Who can claim medical expenses under 80D?

Several categories of individuals are eligible to claim medical expenses under Section 80D. Here’s a breakdown of who can claim:

• Self: If you incur medical expenses for your treatment and are not covered under any health insurance plan, you can claim these expenses under Section 80D.

• Spouse and Children: Medical expenses incurred for the treatment of your spouse or dependent children can also be claimed, provided they are not covered under any health insurance policy.

• Parents: You can claim medical expenses for your parents, both dependent and independent, especially if they are senior citizens (60 years and above) and do not have a medical insurance policy.

• Senior Citizens (Above 60): If a senior citizen is not covered under any health insurance, their medical expenses can be claimed for a deduction of up to Rs. 50,000.

The eligible family members include individuals falling under these categories, but ensure that all payments are made via approved non-cash methods.

Read more: Tax benefits of health insurance

How to calculate tax deductions for medical expenses under 80D

Understanding the calculation of tax deductions under Section 80D is essential to maximise your benefit. Section 80D covers two main aspects: medical insurance premiums and medical expenses for senior citizens.

1. Medical insurance premiums:

The deduction available for medical insurance premiums is capped at Rs. 25,000 for individuals below 60 years of age and Rs. 50,000 for senior citizens. This amount includes premiums paid for self, spouse, children, and parents.

2. Medical expenses for senior citizens:

If you or your parents are senior citizens and not covered under any health insurance policy, you can claim medical expenses up to Rs. 50,000. If both you and your parents fall into this category, you can claim up to Rs. 1 lakh in deductions.

3. Preventive health check-ups:

Section 80D also allows for a deduction of up to Rs. 5,000 per year for preventive health check-ups. This amount is included within the total deduction limit of Rs. 25,000 or Rs. 50,000.