Enjoying peace of mind is paramount in the golden years of life, especially concerning unforeseen medical expenses. Health insurance provides crucial financial security during emergencies, covering emergency expenses. Section 80D of the Indian Income Tax Act extends tax benefits to individuals, particularly seniors aged sixty and above, allowing deductions on medical expenses and insurance premiums. This includes seniors and those paying their parents’ health insurance premiums. Insurance providers offer diverse health insurance plans catering to various needs, including COVID coverage and critical illness policies. Recognising the unpredictable nature of medical emergencies, securing a Bajaj Allianz senior citizen health insurance policy is a wise choice in the face of escalating medical costs. **
|Individual who pays for the medical expenses or health insurance premium
|Tax deduction with respect to an individual
|Tax deduction in respect of non-senior citizen/ senior citizen
|Total tax deduction
|If the senior citizen makes the payment of premium or medical expenses
|If the payment of premium or medical expenses are made by the individual who is less than 60 years of age and whose parents also happen to be less than 60 years of age
|If the payment of premium or medical expenses is made by the individual who is less than 60 years of age and whose parents happens to be senior citizens
|If the payment of premium or medical expenses is made by an individual who is over 60 years of age and whose parents happen to be senior citizens
Senior citizens can avail of a tax deduction of up to ₹7,000 for preventive health checkups. However, this falls within the overall ₹50,000 tax deduction limit applicable to health expenses, including premiums for health insurance and preventive health examinations under the Central Government Health Scheme (CGHS). **
Which Medical Expenses Under Section 80D Are Deductible From Income?
Medical expenses like consultation fees, hospitalisation costs, medical devices, and medications are eligible for deductions under the Income Tax Act. Section 80D covers a broad range of medical expenses, but diseases not specified in the Act are not eligible. Section 80DDB provides additional deductions for specific illnesses such as Parkinson’s, cancer, and AIDS. The maximum deduction is ₹40,000 for those under 60 and ₹1,00,000 for senior citizens, making individuals eligible for tax deductions for relevant medical expenses. **
How Can Senior Citizens Get Their Income Tax Rebate For Medical Expenses Paid?
To qualify for health insurance premium tax deductions, use payment methods like debit/credit cards, net banking, UPI, and mobile wallets. Cash payments for preventive health checkups are also eligible for tax deductions, underscoring the importance of regular checkups for health maintenance. **
Include the Section 80D income tax rebate for senior citizens in your returns. You’re eligible for tax benefits if you’re covering your parents’ medical expenses and health insurance plans for family premiums. Additionally, critical illness insurance protects against unforeseen financial burdens linked to medical treatment. Make sure you do your health insurance renewal on time. ** *
* Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.