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Tax Relief On Medical Bills: If the office refuses to pay medical expenses during illness or accident, there is no reason to worry. You can claim tax relief on your and your family’s hospital bills under various sections of the Income Tax Act. Many people have many questions regarding medical expenses. Like, is the reimbursement of medical expenses received from a previous employer taxable, is the unreimbursed medical expenses eligible for deduction under Section 80D

You can claim medical expenses under Section 80D of the Income Tax Act. However, there are some conditions for this. The first condition is that the expenses should be incurred for the treatment of a senior citizen aged 60 years or above. The second condition is that there should be no health insurance policy in their name.

What are the rules for claiming under Section 80D?

According to the Income Tax Rules, the expenses incurred on medical treatment of uninsured senior citizens are eligible for tax deduction. But there are some exceptions to this. In the Income Tax Act, it is called ‘medical expenses on senior citizens’.

Claims for Parents

Parents should be 60 years of age or above and should not have health insurance. You can claim up to ₹50,000 annually for their medical expenses. Your parents do not have to be financially dependent on you. Even if they have their own pension or income, you can claim tax deduction if you pay their medical bills or insurance premiums from your bank account.

Claim for yourself or your spouse

If you or your spouse fall under the senior citizen category and do not have a health insurance policy, you can still claim up to ₹50,000 annually for medical expenses for yourself and your family.

What is the mode of payment?

Hospital bills or medicine expenses must be paid only through digital means like UPI, credit or debit card, or net banking. The Income Tax Department does not provide any exemption for payments made in cash.