Many people believe that tax benefits under Section 80D are available only if they have a health insurance policy. However, that’s not entirely true.
Resident senior citizens who do not have health insurance can still claim a tax deduction of up to ₹50,000 on eligible medical expenses.
The same benefit is also available to taxpayers who pay medical bills for their uninsured senior citizen parents.
Who Can Claim This Tax Deduction?
The deduction is available for actual medical expenses incurred during the financial year.
To claim this benefit, the following conditions must be met:
The person receiving the medical treatment must be a resident senior citizen (60 years or older).
The senior citizen must not have a health insurance policy during the relevant financial year.
The deduction is available only for eligible medical expenses actually paid.
The maximum deduction allowed is ₹50,000, whether the person is a senior citizen (60 years or above) or a very senior citizen (80 years or above).
For example, if a 68-year-old senior citizen spends ₹42,000 on medical treatment during the year, they can claim the full ₹42,000 as a deduction.
If the medical expenses total ₹70,000, the tax deduction will be limited to ₹50,000.
Can Children Claim the Benefit for Their Parents?
Yes. If a son or daughter pays the medical expenses of their uninsured senior citizen parents, they can also claim a deduction of up to ₹50,000, subject to the applicable conditions.
If senior citizens pay their own medical bills, they can claim the deduction in their own income tax return.
However, the same medical bill cannot be claimed twice.
If multiple family members share the medical expenses, each person can claim a deduction only for the amount they have actually paid.
Keep These Documents Ready
Although supporting documents are generally not required to be uploaded while filing the income tax return, taxpayers should keep them safely in case the Income Tax Department asks for verification later.
Important documents include:
Medical bills
Hospital invoices
Doctor consultation receipts
Pharmacy bills
Diagnostic test reports and bills
Proof of payment through banking channels
Important Update for Taxpayers
These provisions apply under the Income Tax Act, 1961.
However, under the Income-tax Act, 2025, Section 80D has been replaced by Section 126.
Taxpayers should check the applicable provisions while filing their income tax returns for the relevant assessment year to ensure they claim the deduction correctly.
