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Overview
In this sedentary lifestyle, people are more prone to lifestyle diseases. Senior citizens are more vulnerable to several health issues as they age. Leading a stress-free, peaceful and healthy life without any financial burden is essential for senior citizens for the rest of their life. But most people, especially senior citizens, need to know that they can claim a tax deduction for the premium paid towards Health Insurance for every fiscal year.
Can senior citizens save tax under section 80D? Let’s discuss it here!
What is Section 80D?
Under Section 80D of the Income Tax Act, 1961, a person can avail tax deductions on health insurance premiums, preventive health check-ups for self and family (spouse, dependent children and parents) and central government health scheme for senior citizens.
Tax Deduction is available under section 80D
A person (senior citizen) can claim tax deduction for a preventive health check-up up to the limit of ₹ 5,000/- but it will be included in the overall tax deduction.
Exclusions under section 80D
- An individual cannot avail tax benefits for working/independent children, siblings or on behalf of grandparents.
- Buying a Health Insurance policy with cash will be excluded from the list of tax benefits.
- Group Medical Cover (GMC) provided by the employer will not be taken into account in the employee’s income tax deduction. Even so, the employee can avail the tax deduction on their additional add-on cover or top-up plan purchased, for which they pay Premium out of their pocket.
Section 80D of the Income Tax Act allows senior citizens to claim a tax deduction on their health insurance premiums. This means that if you are a senior citizen and you have a health insurance policy, you can claim a tax deduction for the premiums you pay for that policy. This can help you save money on your taxes and make it more affordable for you to access quality healthcare.
To claim the tax deduction under Section 80D, you must be a senior citizen who is aged 60 years or older. If you are a senior citizen and you have a health insurance policy, you can claim a tax deduction of up to Rs. 50,000 per financial year on the premiums you pay for that policy. If you are a senior citizen and your parents are also senior citizen, you can claim an additional tax deduction of up to Rs. 1,00,000 per financial year for the premiums you pay for the health insurance of your spouse.
To claim this tax deduction, you must provide receipts for the medical expenses you have incurred.
Summing up
While filing your income tax return (ITR), remember to submit your documents as proof along with your medical bills to avail the tax benefits provided for senior citizens and lead a hassle-free life.
FAQs
How Senior Citizens can save Tax with Medical Bills u/s 80 D?
A senior citizen can save tax by claiming a tax deduction under Section 80D of the Income Tax Act. They can claim a tax deduction on their health insurance premiums paid to the Insurer.
Can I claim 80D for grandparents?
Since Senior citizens can avail the tax benefits under Section 80D.
What is the deduction limit under section 80D of the Income Tax Act, 1961?
The maximum deduction limit under section 80D of the Income Tax Act, 1961 can range from Rs 25,000 to Rs 1 lakh depending on the type of Insured.
What the exclusions are under section 80D?
Some of the exclusion includes the following:
1. The premium amount should be paid within the fiscal year.
2. The premium amount is paid in cash.
3. The payment is paid on behalf of working children, siblings, grandparents or other relatives.
4. The company pays the employee’s group health insurance premium.
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The Information including but not limited to text, graphics, images and other material contained on this blog are intended for education and awareness only. No material on this blog is intended to be a substitute for professional medical help including diagnosis or treatment. It is always advisable to consult medical professional before relying on the content. Neither the Author nor Star Health and Allied Insurance Co. Ltd accepts any responsibility for any potential risk to any visitor/reader.