What all medical deductions are allowed in Income Tax?

In India, the Income Tax Act provides for several deductions related to medical expenses incurred by individuals and their family members. These deductions help taxpayers reduce their taxable income and consequently lower their tax liability. Here are some of the key medical deductions allowed under the Income Tax Act:

  1. Deduction for Medical Insurance Premium (Section 80D):
    • Premium paid for medical insurance policies covering the taxpayer, their spouse, dependent children, and parents qualify for deduction under Section 80D.
    • The maximum deduction allowed under this section depends on the age of the insured individuals and the type of coverage:
      • For individuals and their families: Up to Rs. 25,000 per year (Rs. 50,000 for senior citizens).
      • Additional deduction for premium paid for parents: Up to Rs. 25,000 per year (Rs. 50,000 if parents are senior citizens).
      • An additional deduction of up to Rs. 5,000 is available for preventive health check-up expenses within the overall limit.
  2. Deduction for Medical Treatment of Specified Diseases (Section 80DDB):
    • Taxpayers can claim a deduction for expenses incurred on the treatment of specified diseases for themselves, their spouse, dependent children, and parents.
    • The diseases covered include specified ailments such as cancer, chronic renal failure, AIDS, etc., as specified in Rule 11DD of the Income Tax Rules.
    • The deduction allowed is the amount actually paid or Rs. 40,000, whichever is less. For senior citizens, the maximum deduction allowed is Rs. 1,00,000.
  3. Deduction for Medical Expenses of Disabled Dependents (Section 80DD):
    • Taxpayers who incur expenses on medical treatment, nursing, training, and rehabilitation of a dependent with a disability can claim a deduction under this section.
    • The maximum deduction allowed is Rs. 75,000 (Rs. 1,25,000 for severe disability).
    • The dependent may be a spouse, children, parents, or siblings.
  4. Deduction for Medical Expenses of a Dependent with Severe Disability (Section 80U):
    • Taxpayers who themselves have a disability can claim a deduction under this section for expenses incurred on medical treatment, nursing, training, and rehabilitation.
    • The deduction allowed is Rs. 75,000 (Rs. 1,25,000 for severe disability).
  5. Deduction for Health Check-up Expenses (Section 80D):
    • As mentioned earlier, individuals can claim a deduction of up to Rs. 5,000 within the overall limit under Section 80D for expenses incurred on preventive health check-ups for themselves, family members, and parents.

These deductions help taxpayers mitigate the financial burden of medical expenses and promote health care coverage and accessibility. It’s important to note that the actual deduction available to an individual may vary based on factors such as the specific provisions of the Income Tax Act, the taxpayer’s age, and the nature of expenses incurred. Taxpayers are advised to consult with tax professionals or refer to the relevant provisions of the Income Tax Act for accurate information and guidance. If you are looking for any ITR filling services, you can contact at ebex consulting. We will be happy to serve you.

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