Following are the various health care tax deductions:-
1. Section 80D – Medical Insurance
a) Deduction for the premium paid for medical insurance under this section is available to an individual or a HUF.
b) A deduction of Rs.25,000 can be claimed for insurance of self, spouse and dependent children.
c) An additional deduction for insurance of parents is available up to Rs.25,000 if they are less than 60 years old, or Rs.50,000 if more than 60 years old.
d) If a taxpayer's age and parents age is 60 years or above, maximum deduction available under this section is up to Rs.100,000 (50,000+50,000).
e) A cumulative additional deduction of Rs.5,000 is allowed for preventive health check up.
a) Deduction for the premium paid for medical insurance under this section is available to an individual or a HUF.
b) A deduction of Rs.25,000 can be claimed for insurance of self, spouse and dependent children.
c) An additional deduction for insurance of parents is available up to Rs.25,000 if they are less than 60 years old, or Rs.50,000 if more than 60 years old.
d) If a taxpayer's age and parents age is 60 years or above, maximum deduction available under this section is up to Rs.100,000 (50,000+50,000).
e) A cumulative additional deduction of Rs.5,000 is allowed for preventive health check up.
2. Section 80DD – Disabled Dependent
a) Deduction for rehabilitation of handicapped dependent relative is available to a resident individual or a HUF on:
i) Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative,
ii) Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
b) Where disability is 40% or more but less than 80% – fixed deduction of Rs. 75,000.
c) Where there is severe disability (80% or more) – fixed deduction of Rs. 1,25,000.
d) To claim this deduction a certificate of disability is required from prescribed medical authority.
a) Deduction for rehabilitation of handicapped dependent relative is available to a resident individual or a HUF on:
i) Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependent relative,
ii) Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
b) Where disability is 40% or more but less than 80% – fixed deduction of Rs. 75,000.
c) Where there is severe disability (80% or more) – fixed deduction of Rs. 1,25,000.
d) To claim this deduction a certificate of disability is required from prescribed medical authority.
3. Section 80DDB – Medical Expenditure
a) Deduction for medical expenditure on self or dependent relative is available to a resident individual or a HUF up to Rs.40,000.
b) Such deduction, for an individual, is available in respect of any expenses incurred towards treatment of certain specified medical diseases or ailments for himself or any of his dependents.
c) For a HUF, such deduction is available in respect of medical expenses incurred towards these prescribed ailments, for any of the members of the HUF.
d) In case the individual on behalf of whom such expenses are incurred is a senior citizen, a deduction upto Rs.1 lakh can be claimed by the individual or HUF taxpayer.
e) Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section.
f) A prescription for such medical treatment from the concerned specialist is required in order to be able to claim such deduction.
a) Deduction for medical expenditure on self or dependent relative is available to a resident individual or a HUF up to Rs.40,000.
b) Such deduction, for an individual, is available in respect of any expenses incurred towards treatment of certain specified medical diseases or ailments for himself or any of his dependents.
c) For a HUF, such deduction is available in respect of medical expenses incurred towards these prescribed ailments, for any of the members of the HUF.
d) In case the individual on behalf of whom such expenses are incurred is a senior citizen, a deduction upto Rs.1 lakh can be claimed by the individual or HUF taxpayer.
e) Any reimbursement of medical expenses by an insurer or employer shall be reduced from the quantum of deduction the taxpayer can claim under this section.
f) A prescription for such medical treatment from the concerned specialist is required in order to be able to claim such deduction.
4. Section 80U – Physical Disability
a) Deduction up to Rs.75,000 is available for a resident individual suffering from a physical disability (including blindness) or mental retardation.
b) In case of severe disability, deduction up to Rs.1,25,000 can be claimed.
5. Important points to note:-
a) While expenses borne for preventive health check-ups of self, spouse, dependent children or parents are deductible from annual taxable income, irrespective of age, the claimant should have a premium-paying medical insurance policy too.
b) Cumulative deduction allowed for preventive health check-ups is up to Rs.5,000 for an individual and the family, and up to Rs.7,000 if parents are senior citizens, which is in addition to deduction allowed on the premium amount paid.
c) For super senior citizens (80 years and above) who do not have their own health insurance and are dependent on any of their children, the child who has a premium-paying health insurance policy can avail deduction of Rs. 30,000 (max), instead of the normal Rs.25,000 (max).
d) All Sec 80D deductions are applicable only to individuals and HUFs, who are paying premiums for medical insurance, where:-
i) Individuals can claim for self, spouse, dependent children and parents; and
ii) HUFs can claim for mediclaim policies bought for its members.
e) As a corollory, an individual can't also claim deductions under Sec 80D for any other relatives although he/she can include them in their health insurance policies if eligible.