How Senior Citizens Can Save Taxes with Medical Bill Under Section 80D?
Updated On Dec 06, 2021
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Being a senior citizen might be stressful, but it also has its own set of advantages. Especially because it is an age where one can fall severely ill and is more susceptible to diseases, which is why a health insurance policy is a prized asset to have. What’s better, to facilitate senior citizens to better maintain their health insurance plans, there is a special tax exemption present as well. Know all about it, to better take advantage of the benefits available.
What is Section 80D?
The insurance policies in India are regulated by certain mandates which help facilitate equal advantages for all policyholders. The section 80D that provides tax exemption to senior citizens included in the Central Government Health Scheme (CGHS), provided by the government of India. Under this section, senior citizens, that is anyone who is above the age of 60 years old, can avail up to Rs 50,000 in tax exemption for the medical expenses that have incurred upon them. Even if they are not direct policyholders and it is their children under whom they are insured, the same amount can be exempted from taxation when it is the medical bills of the senior citizen being paid.
Since senior citizens may have multiple health complications or medical expenses that might not be covered under the basic health insurance plan. In that case, an additional premium may be paid to enhance the facilities provided by the health insurance plan. In case there is additional premium being paid for a senior citizen, tax deductions of up to Rs 50,000 can be availed of. Therefore, under the ambit of Section 80D, senior citizens can get tax deductions for their medical bills including on their policy premium, for the various benefits that are provided in the plan like health check-up and added premium.
What are the Medical Bills Included?
Under Section 80D’s Tax Exemption, all medical bills racked up due to any diseases or procedures that have been regulated by the Income Tax Act of India are covered. There is also another section of medical expenses which is known as the 80DDB. It also has tax deductions included under it. Check the detailed list of diseases that are included in each of these to see which section to file the claim under. Medical gears such as hearing aids, wheelchairs or any other such recommended devices are also covered under this benefit as long as they have been recommended by a registered medical practitioner and not absolutely out of government regulations.
Documents Needed for Tax Deductions
According to the Income Tax Act of India, there aren't any separate or particular set of documents that are required to claim tax benefits. However, policy related documentation is necessary under every circumstance. Moreover, it is important to keep the medical bills handy since this benefit is particularly based on them.
Buying a health insurance policy at an old age is usually not recommended as policy providers charge more than what they do for younger people, due to the increased risks involved. Nevertheless, tax exemptions such as these are valuable and make it possible for everyone to stay insured under a robust health insurance policy. In hindsight, measures such as these also emphasize the need for having a health insurance policy to avoid inadequate medical treatment and financial hassle.
Also Read: Tax Benefits In Health Insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.