How you can save tax under Section 80D on medical grounds
For a senior citizen who has stopped working every rupee saved is like a rupee earned. This is where Section 80D of the Income-tax Act, 1961 is an important tax saving clause that every senior citizen needs to understand.
This section empowers senior citizens to claim deductions on medical insurance premiums.
A senior citizen who has bought medical insurance can claim a deduction upto Rs 50,000. This can be substantial saving depending upon your tax slab.
Section 80D has one more interesting clause. Today, there are several families where a senior citizen is also taking care of his aged parents. In such cases, the deduction under Section 80D goes upto Rs I lakh.
Individuals who are yet to reach the age of 60 also stand to benefit if they buy insurance for their aged parents. They can claim a tax deduction for Rs 25,000 for themselves, and another Rs 25,000 for their parents if they are less than 60 years old. In case they are above 60 then the tax rebate goes upto Rs 50,000.
Section 80D also covers preventive health check ups. Senior citizens can claim deductions for preventive health check-ups of Rs 5,000 every year.
This deduction is, however, available within the overall limit of Rs 25,000 / Rs 50,000. For instance, if the premium is Rs 46,000 then you can add Rs 4,000 spent on preventive health check up and avail the full deduction of Rs 50,000.
Senior citizens who do not own a medical insurance policy need not worry. They can claim the Section 80D deductions by furnishing their hospitalisation bills.
However, it is advisable that every senior citizen must buy a medical insurance policy. You don’t know when you may need it.
A word of caution
You can avail these benefits provided you pay your premiums through digital or non-cash modes such as net banking, credit cards, debit cards, crossed cheques or demand drafts.
You should never make the mistake of paying cash to an insurance agent or insurance firm to purchase medical insurance. Such purchases are not eligible for Section 80D deductions.
The following chart gives the different scenarios of deductions available under Section 80D:
| Policy Holder | Deduction for individual & family |
Deduction for parents | Preventive Health check-up | Maximum Deduction |
| Individual & Family + Parents (all of them below 60 years) |
25,000 | 25,000 | 5,000 | 50,000 |
| Individual & Family (below 60 years) + Parents (above 60 years) |
25,000 | 50,000 | 5,000 | 75,000 |
| Individual & Family + Parents (above 60 years) |
50,000 | 50,000 | 5,000 | 1,00,000 |
Read: How Digital Life Certificate has made life easy for pensioners
Discover more from
Subscribe to get the latest posts sent to your email.
