I am a senior citizen covered under health insurance of parents carried by my daughter. I have covered the cost of health check-up, buying medicine from medical store. Can I get tax benefit under 80D for these expenses incurred by me within Rs. 5,000 limit?
Answer: According to Section 80D of the Income Tax Act, a taxpayer is entitled to a deduction of up to Rs. 25,000/- for health insurance premium paid for his family, which includes the assessee, his/her spouse and dependent children. Additional deduction up to Rs. 25,000/- can also be claimed in respect of health insurance premiums paid for the parents. Deductions are available to parents whether they are dependent on you or not. If the person for whom the health insurance premium has been paid is a senior citizen, then the higher deduction of Rs. 50,000/- in a year is available in each of the above categories. Within this overall limit of Rs. 25,000/- or Rs. 50,000/- as the case may be, deduction up to Rs. 5,000/- is available for the amount spent on preventive health check-up in each of the above two categories.
Even though your daughter is paying the health insurance premium for you, you can still pay Rs. 5,000/- is paid for your regular health check-up, if it can be called preventive health check-up. Please note that this deduction is available only for health check-up and not for purchasing medicines etc. Expenses in respect of medicines etc. can be claimed under section 80D in respect of senior citizen if he does not have any health insurance and expenses other than cash have been paid for.
Balwant Jain is a tax and investment specialist and can be contacted on Twitter at jainbalwant@gmail.com and @jainbalwant.
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