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

Mediclaim Insurance & Medical expenditure

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

Particulars Maximum Limit
Medical Insurance premium + Preventive health checkup (sub limit of Rs. 5000) of Self, Spouse and dependent Children 25,000
Medical Insurance premium + Preventive health checkup (sub limit of Rs. 5000) of parents who are non-senior citizens 25,000
Medical expenditure on Self, spouse and dependent Children NOT ALLOWED
Medical expenditure on Parents who are non-senior citizens NOT ALLOWED
MAXIMUM LIMIT OF DEDUCTION U/S 80D 50,000
 

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

Particulars Maximum Limit
Medical Insurance premium + Preventive health checkup (sub limit of Rs. 5000) of Self, Spouse and dependent Children Non Senior Citizens 25,000
Medical Insurance premium + Medical expenditure + Preventive health checkup (sub limit of Rs. 5000) of parents who are senior citizens 50,000
Medical expenditure on Self, spouse and dependent Children NOT ALLOWED
Medical expenditure on Parents who are senior citizens COVERED ABOVE WITHIN THE LIMIT OF Rs. 50000
MAXIMUM LIMIT OF DEDUCTION U/S 80D 75,000
 

FOR SENIOR CITIZENS HAVING PARENTS WHO ARE SENIOR CITIZENS:

Particulars Maximum Limit
Medical Insurance premium + Medical expenditure+ Preventive health checkup (sub limit of Rs. 5000) of Self, Spouse and dependent Children 50,000
Medical Insurance premium + Medical expenditure + Preventive health checkup (sub limit of Rs. 5000) of parents who are senior citizens 50,000
Medical expenditure on Self, spouse and dependent Children COVERED ABOVE WITHIN THE FIRST LIMIT OF Rs. 50000
Medical expenditure on Parents who are senior citizens COVERED ABOVE WITHIN THE SECOND LIMIT OF Rs. 50000
MAXIMUM LIMIT OF DEDUCTION U/S 80D 100,000
 
 

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.

Disclaimer: This write up is not intended to be a professional advice to anyone, therefore neither the Author nor the Organization he represents accepts any responsibility whatsoever and hence no liability can arise for any losses, claims or due to the contents of this write up. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. The opinion is the personal opinion of the author and the firm P P Jayaraman & Co will not in any way be responsible for any claim etc.

Author Bio

Qualification: CA in Practice
Company: PP JAYARAMAN & CO
Location: THANE, Maharashtra, IN
Member Since: 11 Sep 2019 | Total Posts: 8
The author, Aravind Jayaraman is a Chartered Accountant in Practice based in Thane, Maharashtra. View Full Profile

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7 Comments

  1. bibhudatta misra says:

    i have spent 30000 on my mother’s(senior citizen) eye operation(cataract). out of this 15000 was claimed under mediclaim which i pay annually for her health insurance. rest 15000 i paid from my own ATM. can i claim deduction of tax for this 15000 that i paid from my own pocket

  2. Bharatkumar Divekar says:

    i would like to know that if my Mediclaim policy premium was Rs 28000/-. under 80d we have maximum benefit of Rs. 25000/-. My self and My wife both are Government Servant. For my tax deduction i can deduct Rs. 25000/- and another Rs. 3000/- claim in my wife income tax. So i would like to know that is there possible. Full Rs. 28000/- check will be given by Wife account. Pl. reply

  3. R K KHARE says:

    I would like to know whether I can claim expenditure on hospital treatment of my father under 80d.
    My father is not dependent on me and there is no medical insurance policy for him.
    Thanks

  4. Swapnil says:

    I got my mother’s name added to health insurance provided by my employer. I do take top-up cover over on top up of it. Mother’s monthly medicine expenses are 3500. Last year she was admitted and total bill was 90461 out of which 20728 paid by me via credit card. Can i claim her medicine bills and 20728 amount under 80D

  5. NIJAM.M.M says:

    sir
    I have an expenditure of 42000 towards medical expenditure of mother(sr citizen). No health insurance for her. I have submitted original bills for reimbursement from company and got reimbursement. Also out of 42000, 22000 paid by cash. 10000 paid by my debit card and 10000 paid by mother’s debit card. whether i can claim for tax deduction and if so how much

  6. NIJAM.M.M says:

    sir
    I have an expenditure of 42000 towards medical expenditure of mother(sr citizen). No health insurance for her. I have submitted original bills for reimbursement from company and got reimbursement. Also out of 42000, 22000 paid by cash. 10000 paid by my debit card and 10000 paid by mother’s debit card. whether i can claim for tax deduction and if so how much

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