Health insurance of the taxpayer’s family can be used for tax saving. But, if you or your family members don’t have health insurance, then the above-mentioned sections can be used for tax saving purposes.
Here you can have a deduction in tax based on medical expenses that you have incurred. These expenses can be incurred either on self or on family members (the individual should be older than 60 years). The other fact that needs to be considered here is the mode of payment. Cash payment cannot be treated valid here. The payment should have been made through net banking, credit or debit cards or mobile wallets. Besides, the person for whom medical expense is considered should not have any health insurance policy. A deduction of maximum Rs.50000 can be claimed under this. Preventive health care check-ups can also be covered. The maximum deduction for the same is Rs.5000.
Here, the deduction can be claimed only if the illness is mentioned in the income tax act. This can be claimed by the taxpayer or his/her dependent. The dependent should completely rely on the taxpayer for survival. A maximum amount of Rs. 40000 can be claimed if the person is younger than 60 years. If the person is older than 60 years, a maximum of 1 lakh rupees can be claimed. The reimbursement made by the insurance company (if any) should be deducted before claiming for a tax deduction.
Section 80U and section 80DD:
This considers the disability of the one who is medically impacted. Taxpayers can claim a deduction in case of himself, partner, children, or a complete dependent. If the disability of the person concerned is between 40% to 80%, then Rs.75000 dedication can be claimed. If it is more than. 80%, then 1.25 lakh rupees can be claimed for deduction.
Medical expenses, training, and rehabilitation of a disabled person is considered here. Here the expenses are deducted from the total income on which tax will be calculated. Ultimately, the tax payable reduces. It can also be claimed if the person has purchased insurance for the disabled.
This provides a tax deduction in case of the taxpayer being disabled.