Do You Need Proof For Claiming Medical Expenses Under Section 80D of the Income Tax Act?

  • Author :
  • TATA AIG Team
  • Published on :
  • 20/01/2022

In a world where there is no dearth of health-related risks and rapidly rising medical inflation, it is critical to have a suitable health insurance policy. Such a plan can help you manage a myriad of challenges with regard to your health and enable you to prevent your savings from being eroded by a medical emergency.

Having a health insurance policy that provides basic covers such as a hospitalisation cover and an ambulance cover is not enough, particularly in the current scenario where the COVID-19 pandemic has wreaked havoc across the globe. It is, therefore, also important to have covid insurance as well as critical illness insurance.

Not only does a health insurance policy provide you with a degree of financial protection against health-related challenges, but it also carries certain tax benefits. Under Section 80D of the Income Tax Act, 1961, your health insurance premium is eligible for a deduction from your income so as to reduce your taxable income. In addition to this, medical expenses for senior citizens are also eligible for tax deduction under this section.

The Tax Deductions Permissible Under Section 80D of the Income Tax Act, 1961

Section 80D of the Income Tax Act, 1961, allows for the following tax deductions for expenditure pertaining to one's health:

  1. The payment of health insurance premium by resident individuals and Hindu Undivided Families;
  2. The payment of health insurance premium for Top-up Health Insurance Plans;
  3. The payment for Preventive Health Check-ups;
  4. The payment of medical expenses for senior citizens (for people not covered under any health insurance policy);
  5. The payment pertaining to any contributions made to Central Government Health Schemes or any such scheme announced by the Government.

Here is a table detailing the maximum permissible tax deductions under Section 80D of the Income Tax Act, 1961

Cases Tax Deduction for Health Insurance Premium Paid for Self, Spouse, and Dependent Children Tax Deduction for Health Insurance Premium Paid for Parents Tax Deduction for Medical Expenses Total Tax Deduction Under Section 80D of the Income Tax Act, 1961
Tax Deduction for Health Insurance Premium Paid for self, spouse, dependent children, and parents when everyone is below 60 years of age ₹25,000 ₹25,000 - ₹50,000
Tax Deduction for Health Insurance Premium Paid for self, spouse, dependent children, and parents (when the parents are above 60 years of age) ₹25,000 ₹50,000 - ₹75,000
Tax Deduction for Health Insurance Premium Paid for self, spouse, dependent children, and parents (when both you and your parents are above 60 years of age) ₹50,000 ₹50,000 - ₹1,00,000
Tax Deduction for the Medical Expenses of Senior Citizens (including the expenses for Preventive Health Check-ups) - - ₹50,000 ₹50,000

You can check the total tax deduction that you can claim under Section 80D of the Income Tax Act, 1961, by visiting this page of the Income Tax Department and entering the values for the health insurance premium paid by you or the medical expenses incurred by you during a particular financial year.

Tax Deduction for Medical Expenses Under Section 80D of the Income Tax Act

If you were wondering 'Can Medical Bills Be Claimed Under 80D', the answer is yes. Under Section 80D of the Income Tax Act, you can claim a maximum income tax deduction of ₹50,000 for the medical expenses incurred by you. This tax deduction is only available for senior citizens.

It is important to note here that this deduction can be claimed by a senior citizen or their spouse or children if they are paying the medical expenses on the former's behalf. However, this deduction is permissible only if the expenses are paid in any form other than cash, for instance, Internet Banking, Debit Cards, etc.

Therefore, you must ensure that the payments for your medical expenses (as well as your health insurance premium) are done in a non-cash mode. Furthermore, Section 80D of the Income Tax Act also allows a tax deduction for the cost incurred towards a preventive health check-up.

The above deduction is available to the tune of ₹5,000 and is included in the ceiling of a maximum tax deduction of ₹50,000 under Section 80D. The payment for a preventive health check-up can be in any form to qualify for a tax deduction, including cash. It is prudent to maintain a record of all such payments.

Is Proof Required For 80D Deductions?

The Income Tax Act, 1961, has not necessitated the submission of any documentary evidence for claiming tax deduction under Section 80D. However, to answer the question 'Is Proof Required for Claiming Medical Expenses Under 80D?' - Yes, it is advisable to maintain some basic documentary proof.

Confused? Are you still wondering 'What proof do I need to deduct medical expenses?', remember this - while technically the Income Tax Department may not ask for any evidence, your employer might. While issuing a Form 16 for filing your income tax, the employer needs to account for all the deductions you wish to avail for tax-saving purposes.

So, you need to keep a record of the health insurance premium receipts, medical expense receipts, hospital bills and any other documents and receipts that show the medical expenses incurred during the year that you wish to claim under Section 80D.

Additionally, if you are not dependent on Form 16 for filing your taxes, keeping a record of all the medical expenses incurred during the year makes it easier to tally all the relevant expenses for the deduction at the time of filing your tax returns.

To reiterate, the Income Tax Department does not mandate any proof for 80D deductions. However, it is advisable to maintain a proper record of all the expenses incurred for two reasons - providing proof of deductions for Form 16 and the ease of availing the deductions.

To Sum It Up

Section 80D of the Income Tax Act, 1961, allows you to claim a tax deduction for the health insurance premium paid by you for yourself, your spouse, parents, and dependent children. Furthermore, this section also enables senior citizens to claim a tax deduction for the medical expenses incurred by them, provided they do not have a health insurance policy.

It is, therefore, evident that the benefits of health insurance are not limited to providing you financial security against a wide gamut of medical risks. These benefits extend to tax deductions as well. You must conduct thorough research whilst selecting a health insurance policy for yourself and your family.

It is easy to compare health insurance plans on our official website and calculate your health insurance premium by using our health insurance premium calculator. Stay healthy and choose well!


Disclaimer: The tax benefits of a particular health insurance policy are subject to change on the basis of the changes in the Income Tax laws applicable in the country. It is advisable to check the prevailing tax laws and the corresponding tax benefits of the selected health insurance policy before making a purchase decision.


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