Learn how medical bills of senior citizen parents can save your taxes
Maintaining good health is undoubtedly the theme of the season. With the second wave of COVID going on in full swing, health insurance looks like an unavoidable necessity that also allows you tax benefits under Sec 80D.
But the catch here is – health insurance premiums for senior citizens are either too high or unavailable, especially for those with pre-existing conditions. Don’t worry – did you know even the medical bills of your senior citizen parents can save your taxes?
Let’s get to know how this works
- Medical expenditure incurred for senior citizens aged 60 or above is eligible.
- This deduction may be claimed by self (senior citizens themselves) or for the family which includes parents, spouse, or dependent children.
- The person for whom the deduction is claimed is not covered under any health insurance.
- Expenditure on all medical expenses, right from consultation fees to medicines, or purchase of devices like hearing aids, etc is allowed. A proof will be required.
- Most importantly- any payment made by cash is not allowed.
- The limit on medical expenses remains the same as the one allowed for health insurance which is Rs 50000 per year for parents and Rs. 50000 per annum separately for self, spouse, or dependant children ( if senior citizen).
This year, as there are lots of instances of individuals incurring expenses on Covid related treatments, make sure you put this benefit into good use to save your taxes.