Tax Breaks for Senior Citizens' Medical Expenses

Published By: The Economic Times ​

Published Date: 28-05-2018

Senior citizens in India can claim tax benefits on medical expenditures, particularly when treatment occurs at home. According to Yashish Dahiya, Co-Founder and CEO of Policybazaar.com, the government has amended the Income-Tax Act to provide greater relief to senior citizens without insurance coverage.

For those with medical insurance (like the 68-year-old querist paying ₹21,000 premium and ₹30,000 for home treatment of his wife), Section 80D allows a deduction for the insurance premium amount, but not necessarily for out-of-pocket medical expenses if they're already covered by insurance. The querist was advised to consider a more comprehensive insurance plan with floater variants to maximise tax benefits.

Regarding insurance eligibility after organ donation, Rakesh Jain, ED and CEO of Reliance General Insurance clarified that liver donation doesn't disqualify someone from purchasing health insurance after recovery (typically complete after three years). However, this medical history must be disclosed on the proposal form, as insurers evaluate parameters like weight, BMI and potential diseases before approval.