How to save tax by claiming medical benefits

Under Section 80D you can claim a deduction upon health insurance premium paid. This deduction is available only to Individuals and HUF. You can claim this deduction upto Rs. 25,000 for yourself, your spouse, and your children. 

Under this section, you can claim an additional deduction of Rs 25,000 upon the insurance premium paid for your parents. Under this, you can claim deduction upto Rs 50,000 upon payment of insurance premium if the age of your parents is 60 years or more.

However, if the age of the Assessee (taxpayer) and parents is 60 years or more the deduction limit is up to Rs. 1,00,000.

The above table will help you to understand this concept in a better manner;  

Section 80DD:

Under Section 80DD you can claim a deduction upon the expenditure of medical treatment of a disabled dependent person. A dependent person can be a spouse, children, parents, brothers and sisters of the assessee.

Under this section, you can claim a deduction of up to Rs 75,000. But in case of severe disability, you can claim a deduction up to Rs 1,25,000.

Note: The term severe disability means where the disability percentage is 80% or more.

Section 80DDB:

Under this section, you can claim deduction only upon expenditure done for the treatment of illness specified under this section of the Income Tax Act, 1961.

The deduction amount depends on the age of the person on whom the expenditure has been incurred. If the age of the person is below 60 years, then he can claim a deduction up to Rs 40000 and if the age is above 60 years, then he can claim a deduction up to 1 lakh.

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