The Covid-19 crisis has raised understanding of medical care. People that were under-insured or have no medical insurance are now purchasing health insurance for themselves and their families. Since we all agree that under section 80D of the Income Tax Act, the amount you pay for health care counts for tax deduction, based on the family size, the amount of deduction you can claim can differ greatly. The health status of the members of your family can also be a determining factor regarding your tax benefits. Here are numerous aspects of the Income Tax Act that include tax benefits based on whom you purchase health care with and for whom you pay medical costs.
Under Section 80D Of The Income Tax Act
As per the rules of this section, individuals and family members can seek up to Rs 5,000 deduction per year on preventive health checkups. This Rs 5,000 is below the maximum cap of Rs 25,000 that can be taken as a deduction from his or her nuclear family (wife and children) for the health insurance premium for himself, provided that all covered individuals are under the age of 60. You can claim Rs 25,000 for your own nuclear family and another Rs 25,000 for your parents if you pay a fee for yourself, your nuclear family, and non-senior citizen parents, a total of Rs 50,000. That being said, if you or any of your family members (except parents) are a senior citizen, you can seek exemptions of up to Rs 50,000 on the premium for life benefits and preventive health checkup (up to Rs 5,000). If you have not bought any health insurance, you can claim a tax deduction of up to Rs 50,000 for medical costs and preventive health check-ups (up to Rs 5,000 within the limit of Rs 50,000). If you have aged parents, you can seek extra exemptions of up to Rs 50,000 for life insurance premiums, regular health checkups (up to Rs 5,000) and medical bills, regardless of whether or not you have health insurance benefits. So the overall profit goes up to Rs 1 lakh in this scenario.
Under Section 80DD Of The Income Tax Act
If you have any dependents with disabilities, this section will be appropriate. This section allows individuals to take a deduction for medical costs paid by an individual with a disability. On medical expenses made for such dependent children, deductions up to Rs 75,000 are approved. One can assert up to Rs 1.25 lakh as a deduction in a fiscal year in the case of serious disabilities.
Under Section 80DDB Of The Income Tax Act
In the situation of any stated illnesses such as Neurological Condition, Pernicious Cancer, AIDS, Chronic Renal Failure and Hematological Diseases, the taxpayer or any of its dependents can claim a benefit of up to Rs 40,000 per year on medical expenses incurred in the treatment of these diseases in compliance with the provisions of this section. If a senior citizen is independent or dependent, deductions can be up to Rs 1,00,000.
Under Section 80U Of The Income Tax Act
As per this clause, if the claimant himself is an individual with disability, based on the type of disability, he can seek the same deductions as accessible to a dependent with disability u/s 80DD.
