1. Applicability – Individual and HUF including Non Resident Individuals (“NRI“)
2. Definitions:
-Family – means Spouse and Dependent Children
-Senior Citizen – means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year;
3. Investment or Expenditure covered under this deduction:
- Health Insurance Policy or Central Government Heath Scheme
- Preventive Health Check-up (“PHC“)
- Medical Expenditure – Only for Senior Citizen and where health insurance is not taken.
INDIVIDUAL
1. Deduction is available for two category:
- Assessee and Family
- Parents
2. Maximum amount of deduction under this section for both category is INR 1 lakh
3. Maximum amount of deduction for each category is INR 50,000
4. Mode of Payment – Payment shall be made in any mode other than Cash (For PHC, cash payment is allowed)
5. The deduction for Health Insurance including PHC is INR 25,000 for each category. This would be increased to INR 50,000 in each category in case of Senior Citizen.
6. The deduction for PHC cannot exceed INR 5,000 in aggregate.
7. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen in each category subject to upper limit in point 2 and 3.
1. Maximum amount of deduction is INR 50,000.
2. The deduction for Health Insurance is INR 25,000 for any member of HUF. This would be increased to INR 50,000 in case such member is Senior Citizen.
3. No Deduction for PHC for HUF
4. In case Health Insurance is not taken for Senior Citizen, deduction for Medical Expenditure is allowed upto INR 50,000 for senior citizen subject upper limit in point 1.
5. Mode of Payment – Payment shall be made in any mode other than Cash.
6. In case a lumpsum amount (single premium) is paid for Health insurance, covering more than a year, deduction shall be provided proportionately over the years for which the benefit of health insurance is available for both Individual and HUF.
Author Bio
Hi Mr. Mohan
1. Section 80D does not specifically calls out the nature of expenditure covered for deduction.
2. However, as per my opinion, doctor’s consultation and medicine are covered under medical expenditure for Senior Citizen who has not taken any health insurance policy.
3. The payment should have been by any mode other than cash to claim such expenditure.
CA Tarique khichi
tariquekhichi89@gmail.com
Dear SIR,
Is there any sec named as sec80(a) and sec 80(b) in context of sec80 ? Does a senior citizen, an income tax assessee, can claim his medical expenditures for tax deduction? Plz keep in mind that senior citizen does not have any medical insurance policy. Which sec of income tax act does apply in this case ? I do expect your reply soon in this connection on my email address.
Thanx–nageshwarprasadsingh34@gmail.com
Nageshwar Pd Singh,
Does medical expenditure for Senior Citizens without Medical Insurance cover Doctor’s Consultation Fee & Medicines? I am a pensioner from Tamilnadu Government sand they deduct Rs.350/- a month as Pensioners’ Health Fund with restricted medical facilities. A reply will be highly appreciated My email is gmbharathi@hotmail.com.