80D deduction for senior citizen in Health Insurance

Senior citizens (individuals above the age of 60) are treated with utmost respect and gratitude in our country, but everyone is aware that most of them are surviving on minuscule pensions or rapidly depleting savings. According to Section 80D of the Income Tax Act (ITA) of 1961, senior citizens are eligible for a good amount of tax deductions on their health insurance premiums. This was done to reduce their expenditure and help them save more.

We at Aditya Birla Health Insurance are here to help you know everything you need to know about tax deductions on health insurance premiums for senior citizens.

The Income tax deduction limit for senior citizens

In Section 80D of the ITA, it is stated that senior citizens are eligible for a maximum of Rs 50,000 in tax deductions for their health insurance premiums. In addition to this, if a senior citizen is also paying the health insurance premium for their parents, they are eligible for another tax deduction of Rs 50,000 per financial year, thus being able to save a total of Rs 1,00,000 on tax.

Application of Section 80D under different circumstances

If you are a senior citizen, you can claim tax deductions of up to Rs 50,000 on money spent on preventative health check-ups, health insurance policy premiums and medical expenses for you and your family. Preventive health check-ups, on the other hand, have a maximum tax deduction limit of Rs 5,000 each financial year. As per Section 80D of the ITA, this allowance for preventative health check-ups is included in the overall tax deduction for senior citizens and pensioners of Rs 50,000.

What Medical expenses are tax-deductible under Section 80D?

Any medical expenses towards diseases or medical conditions that are not defined in the Income Tax Act are not eligible for a tax deduction under Section 80D. However, because of recent government revisions to the Act, expenses incurred for doctor's consultations, medication, hospitalization, and medical devices for such conditions would still be considered for tax deductions.

In addition to Section 80D, Section 80DDB provides coverage for specific medical conditions and diseases such as AIDS, cancer, Parkinson's disease, and others. Senior citizens can claim tax deductions of up to Rs 1,00,000 under this clause, whereas non-senior citizens can claim up to Rs 40000. You can file a claim under Section 80DDB if the expenses of your medical condition fall into this category.

If a medical condition isn't covered by Section 80DDB or the maximum has been reached, you can claim the remaining medical expenses incurred under Section 80D.

Cashless payment required to avail tax benefits under Section 80D

Always use online payment mechanisms to pay for your health insurance plan or the cost of medical treatment if you aim to claim tax deductions. Use debit cards, credit cards, net banking, cheques, or other cashless methods of payment. Alternatively, you can also pay using other digital payment methods such as UPI, mobile wallets, and so on.

On the other hand, with most insurers, such as us at Aditya Birla Health Insurance, preventive health check-ups are allowed to be paid for in cash. Preventive health checks should be performed regularly to protect yourself from a growing illness or disease. If a sickness or medical condition is detected early enough, the appropriate treatment can be obtained at lower costs.