Section 80D Tax deduction for Mediclaim Insurance & Medical expenditure

Taking medical insurance has become extremely relevant in the current days and medical expenditures for purchase of medicines for life style diseases have also started becoming a regular expenditure especially for senior citizens. Medical expenditure can cover even the  hospitalization expenses also of the senior citizen. The Income Tax Act, 1961 has given tax benefits of Medical insurance as well as regular medical expenditure which are as under:

There are three items of medical expenditure on which deductions are permissible:

1. Medical Insurance Premium

2. Preventive Health Check Up expenses and

3. Medical expenses like Purchase of medicines, Doctor consultation fees and hospitalization expenses

FOR NON-SENIOR CITIZENS HAVING PARENTS WHO ARE ALSO NON-SENIOR CITIZENS:

FOR NON-SENIOR CITIZENS HAVING PARENTS WHO ARE SENIOR CITIZENS:

FOR SENIOR CITIZENS HAVING PARENTS WHO ARE SENIOR CITIZENS:

Some of the other important points // clarifications are as under:

• The payment for the Medical insurance premium as well as medical expenditure should be compulsorily made by any mode other than by way of Cash. (Eg. A/c Payee Crossed Cheque, Demand draft, Credit Cards, Debit Cards, UPI payments, E-wallets etc). Payment for Preventive health checkup (having sub-limit of Rs. 5000) can however be made by way of cash.
• The medical expenditure as mentioned above need not be only hospitalization expenditure. It can even be regular medical expenditure like purchase of medicines, payment to doctors etc.
• Where the payment of insurance premium is made for more than one year, the deduction shall be allowed proportionately in each year.
• Senior citizen is defined to mean only ‘Resident Senior Citizen’. So, Non-residents are not eligible for any benefits of a senior citizen even if they are over sixty years of age.
• To claim deduction for mediclaim for children, dependence is an essential condition, but for parents it is not specified as dependent or not. However the same expenditure cannot be claimed both by parent and the child.
• Senior citizen means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

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