How Do I Save Tax on Medical Bills Under Section 80D?

Paying for health insurance and medical expenses not only safeguards your health but can also help reduce your tax burden. Under Section 80D of the Income Tax Act, you can claim deductions on premiums paid for yourself and your family, along with expenses for preventive health check-ups. The eligible deduction amount varies by age, with higher benefits available to senior citizens.

What is Section 80D?

As per the Income Tax Act of India, Section 80D allows you a tax deduction as you pay for your health insurance premiums or pay for certain medical expenses. You can apply for a tax deduction while you file your Income Tax Return for a financial year.

Now, if you are below 60, with a spouse and children, you can claim up to ₹25,000. For senior citizens, this amount increases to ₹50,000.

How to Save Taxes on Medical Bills Through Section 80D?

As of FY2026-27, you must opt for the old tax regime to avail this deduction, as the new regime does not have this feature. Here is a breakdown of how you can save on medical bills under Section 80D:

1. Health Insurance Premium Payment

As you opt for a health insurance plan and pay your premiums throughout a financial year, you can claim this payment as a deduction. However, note that you must pay the premium in any mode other than cash.

The section does not allow you to claim a deduction for any amount due for the financial year that you have not yet paid. Now, if you want a bit more benefit under this section, note that if you are below 60, you are already eligible for a deduction of ₹25,000.

However, if you add your dependent parents who are also below 60 years, you can claim an additional ₹25,000, increasing the tax deduction. A senior citizen who is eligible for a ₹50,000 deduction can add their senior citizen parents and potentially claim a deduction of ₹1,00,000.

2. Preventive Health Check-Ups

With health insurance, you can get preventive health check-ups and stay informed about your current health status. For such check-ups, you can claim a tax deduction of ₹5000 in a financial year.

However, this limit applies to both senior and non-senior citizens under Section 80D. Unlike a claim on premiums, you can make cash expenses for checkups and apply for this deduction.

3. Medical Expenses

Senior citizens without health insurance can claim a deduction for medical expenses up to a certain limit. However, if they have health insurance, they cannot claim deductions for expenses not covered under the policy. It is because they already pay a premium for their health insurance.

Final Word

Section 80D helps reduce taxes while covering healthcare costs. By planning premiums, check-ups, and medical expenses under the old tax regime, you can maximise deductions. Keep valid payment proofs and bills ready to ensure a smooth and hassle-free ITR filing process.