Many people believe that the tax deduction available under Section 80D of the Income Tax Act can only be claimed on health insurance premiums.
However, that is not entirely true. Even if a senior citizen does not have a health insurance policy, they may still be eligible for a tax deduction on their medical expenses.
According to income tax rules, resident senior citizens without health insurance can claim a deduction of up to ₹50,000 for medical expenses incurred during a financial year.
In addition, children who pay the medical expenses of their uninsured elderly parents can also claim this deduction while filing their income tax returns.
Amarnath Saxena, Chief Technical Officer (Commercial) at Bajaj General Insurance, and Sudhir Kaushik, Co-Founder and CEO of Taxspanner, explained these provisions in simple terms.
Who Can Claim the Deduction?
To qualify for this benefit, the person whose medical expenses are being claimed must be:
A resident of India.
At least 60 years old.
The deduction is available only on actual medical expenses and is capped at ₹50,000 in a financial year. The maximum deduction remains the same for people aged above 60 as well as those above 80 years.
This benefit is available only if the senior citizen does not have an active health insurance policy.
If they already have health insurance, they can claim a deduction only for the insurance premium paid, not for hospital or medical treatment expenses.
For example, if a 68-year-old person without health insurance spends ₹42,000 on medical treatment in a year, they can claim the entire ₹42,000 as a deduction.
If their medical expenses are ₹70,000, they can still claim only up to the maximum limit of ₹50,000.
Who Can Claim the Medical Expenses?
If senior citizens pay their own medical bills, they can claim the deduction while filing their Income Tax Return (ITR).
If their children pay the medical expenses of their uninsured parents, the children can also claim a deduction of up to ₹50,000.
However, the same medical bill cannot be claimed by both the parents and the children. The deduction is available only to the person who actually made the payment.
If different portions of the medical expenses are paid by different people through separate banking channels, each person can claim a deduction only for the amount they paid.
It is also important to note that these provisions were originally under Section 80D of the Income Tax Act, 1961. Under the Income-tax Act, 2025, Section 80D has been replaced by Section 126.
Cash Payments Are Not Eligible
Tax experts say that medical expenses paid in cash for treatment, medicines, or hospital bills are not eligible for tax deduction.
To claim the deduction, payments must be made through banking channels such as:
Cheque
Demand Draft
Net Banking
UPI
Debit or Credit Card
The only exception is preventive health check-ups, where cash payments of up to ₹5,000 are allowed.
Documents You Should Keep Ready
Although you are not required to upload documents while filing your Income Tax Return, the Income Tax Department may ask for them during scrutiny or verification. Therefore, keep the following documents safely:
Medical bills, hospital invoices, and doctor’s consultation receipts.
Medicine bills and diagnostic test reports.
Proof of payment through banking channels, such as bank statements or transaction records.
Proof of the parent-child relationship and the parents’ age if you are claiming the deduction for your parents.
A self-declaration confirming that the senior citizen does not have a health insurance policy.
