Income Tax savings: Senior citizens can exceed Rs 50,000 limit under Section 80D! Here is how

Income Tax savings: ITD under Section 80D allows an income taxpayer to avail tax exemption up to the limit of Rs 50,000.

A senior citizen who doesn't have a mediclaim can claim Section 80D benefits on his or her hospitalisaion or surgery expenses up to Rs 50,000. Photo: Reuters

Income Tax savings: The Income Tax Department (ITD) under Section 80D allows an income taxpayer to avail tax exemption up to the limit of Rs 50,000. This exemption is available on mediclaim premium being paid either by the senior citizen themselves, our by their life partner or by their son or daughter. But, in case of senior citizens not having a mediclaim policy but being hospitalised under critical illness or for surgery, they can avail Income Tax exemption up to Rs 50,000 under Section 80D. However, the way medical expenses are flying high these days, one can't expect surgery or critical illness to be cured within this limit. In such case, tax and investment experts advise the rest of the family members to pay individually up to Rs 50,000. Means, the senior citizen hospitalised should pay up to Rs 50,000 and then his or her life partner should pay the rest amount in case the medical bill passes Rs 50,000 limit. They say, if the bill goes beyond Rs 1 lakh, their sons and daughters can also chip in and avail income tax exemption under Section 80D.

Elaborating upon the Section 80D provisions Mumbai-based tax and investment expert Balwant Jain said, "If a senior citizen is hospitalised for surgery or owing to critical illness, in that case, the senior citizen can claim Section 80D income tax exemption up to Rs 50,000 on his or her medical bill. However, as per the Income Tax Act provisions, if the bill goes beyond Rs 50,000, it is advisable for the life partner of the senior citizen to pay the additional medical bill and avail up to Rs 50,000 tax exemption under Section 80D. This benefit is not only for hospitalisation, but also for day-today medical expenses including doctor's consultation, medicine purchase, provided bill is produced."

Jain said that they can avail this exemption if they don't have the mediclaim adding, "In case, the medical bill goes beyond Rs 1,00,000 then rather the hospitalised senior citizen or his or her life partner paying the additional bill, their son or daughter should pay that bill and avail the Section 80D income tax exemption, which is in addition to the Section 80C exemption limit up to Rs 1.5 lakh."

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Elaborating upon how this 80D benefit is applicable to the senior citizen and his family members Kartik Jhaveri, Manager — Wealth Management at Transcent Consultancy said, "A senior citizen who doesn't have a mediclaim can claim Section 80D benefits on his or her hospitalisaion or surgery expenses up to Rs 50,000. In case, if his or her life partner and other family members has paid for the senior citizen's hospitalisation bill, he or she can also claim the Section 80D income tax exemption benefits. However, they can get this benefit only when they don't have the mediclaim under their name. If the family members of the senior citizen are already having a mediclaim policy, then they can claim Section 80D benefits only up to the balance between the Rs 50,000 and the mediclaim premium being paid by the individual family member of the senior citizen."

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