How to save taxes on medical expenses?

Healthcare expenses constitute a significant portion of your overall spending, including health treatments, preventive checkups, and health insurance premiums, and such expenses are rising yearly.
So, under the Income Tax Act, an individual can claim some of these expenditures as deductions while filing an ITR under the Old Tax Regime.

1. Deduction for Health Insurance Policy

Are you paying health insurance premiums? If yes, then section 80D of the Income Tax Act provides relief to an Individual and HUF for the premium paid towards health insurance in any other mode than cash for self, spouse, and, dependent children to the extent of ₹25,000. If you’re a senior citizen, the deduction increased to ₹50,000.

It further allows an additional deduction of up to ₹25,000 for premiums paid on a health insurance plan for your parents. If your parents are senior citizens, the deduction increased to ₹50,000.
In the case of senior citizens (self/ parents) medical expenditure incurred for doctor visits, medicines, etc. which are not covered by health insurance can be claimed up to the overall limit of ₹50,000 mentioned above.

Deduction for Preventative Health check-ups

Any expenditure incurred for regular health checkups (may be in cash as well) allows a deduction of up to ₹5000, which is included in the overall limit of ₹25,000 or ₹50,000 whichever is the case.

2. Deduction for dependents with disability

If you’re paying for the treatment of the disability of a dependent family member: parents, spouse, children, and siblings, you can claim a deduction under section 80DD of the Income Tax Act in order to reduce the liability of the resident individual.

Deduction of a maximum of up to ₹75,000 can be claimed. In case of any severe disability (i.e. 80%) the deduction can be claimed up to ₹1,25,000.

3. Deduction for treatment of the specified disease

You are eligible to claim a deduction of up to ₹40,000 under section 80DDB for the expenses incurred by an individual for a dependent family member towards the treatment of specified diseases stated in the IT Act such as AIDS, cancer, etc.

In case of a senior citizen, the deduction allowed is ₹1,00,000. However, the amount of the deduction shall be first adjusted with the reimbursement received by the insurance company or employer.

4. Deduction for Individuals with disability

Section 80U provides an incentive to help disabled individuals manage their financial well-being. Physically or mentally disabled individual residents are eligible for the 80U benefit.

The maximum deduction allowed is ₹75,000 and it increases to ₹1,25,000 in case of severe disability.

Example: Dhruv, an individual aged 41 years, purchased health insurance for his senior citizen parents and himself. He pays ₹36,000 for his medical insurance, ₹45,000 for his parent’s insurance, and a total of ₹10,000 for their medical check-ups. He incurred some expenses for the medical treatment of his dependent younger sister suffering from cancer.

Solution: Dhruv is eligible for a total deduction of ₹1,15,000.

  1. ₹25,00 u/s 80D for his own insurance premium
  2. ₹50,000 u/s 80D for his senior citizen parents (Inclusive of heath check-ups expense)
  3. ₹40,000 u/s 80DDB for his dependent sister suffering from a severe disease as specified under the IT Act.

It is advisable to have supporting documents like insurance premium receipts, medical bills, medical certificates, etc. while claiming deductions in filing ITR.

Read more about Tax Savings & Deductions under Chapter VI-A,

Am i eligible to claim 80ddb and 80u simultaneously?

Hi @Zainab_Hawa1,

Yes, you can claim both deductions at the same time provided 80U is claimed for yourself and 80DD is claimed for a disabled dependent.

Quicko is not allowing any deductions for self ( senior citizen ) on medical expenditure. Hope the issue gets resolved soon.

Hi @bhotlu

Quicko does support deduction on medical expenditures for senior citizens.

Here’s the article on how to add tax breaks on Quicko.

If you still face any issue, let me know.


Senior Citizens are eligible for tax deductions of upto 50K for medical expenditure, after adding the details, Quicko is not picking that value as a deduction

I have also raised a ticket for the same.

Please look into it on urgent basis as its blocking me from filing my return.


Hi @bhotlu

Quicko does support deduction on medical expenditures for senior citizens.

Here’s the article on how to add tax breaks on Quicko.

If you still face any issue, let me know.

Hi @Muskan_Balar

Please have a look at the screenshots, I had already added them even before you had addressed but Quicko is not picking any deduction for a Self Senior Citizen Medical expenditure.

Hi @bhotlu

Thank you for bringing this issue to our notice. We checked you have also raised a ticket regarding the same.

Our team is working on resolving the problem and will provide you with a response through the ticket as soon as we have a solution in place.

3L Group health insurance is provided by the employer where me, my wife and my parents are covered. Also, I paid some extra to top-up the existing policy. Now I spent 30k in the medical bills related to the doctor consultation, diagnostic test and medicines. For the same, group health insurance policy doesn’t pay anything, considering my parent didn’t hospitalized.
So in such case can I claim the medical expenditure under 80D for my parents of Rs. 30k.
Note: My parents are senior citizens

My parent had an accident 10 years ago which led to limited movement.

I have only just found out about this provision of claiming deductions under 80DD.

If i was to get a disability certificate in July 2023 where it states that my parent has been disabled since 2012, can i use this certificate issued now (issued in July 2023) to claim 80DD for filing my returns for FY22-23 (AY 23-24)?

Or will this only be valid to use from next financial year? (Even tho the certificate states disability is from 2012).

Any clarification and assistance in this matter would be helpful.

Thank you!

Hi @Aman_Jain1

You can claim medical expenses + premium + preventive health checkups for your senior citizen parents of up to ₹50,000.
You cannot claim a deduction of the amount which your employer is paying as group insurance but you can claim the extra amount which you are paying and which is not covered under the group health insurance provided by the employer.

Hi @mbharwani

If in the certificate it is mentioned that the disability exists since 2012, you can claim it in FY 2022-23 as well.

Thanks @Shrutika_Shah, for the update.
I was loosing on this benefit since last 2-3 years.
Also, I couldn’t found out any reference to this query on internet.
Thanks again.

Thank you Shrutika for your response.

In addition am I right in understanding that one must also submit Form 10-IA when the disability is evaluated as severe disabilty (over 80%). It won’t be required for the other category?

Thanks in advance

Yes, @mbharwani you must file form 10IA for the same.

Hello @Shrutika_Shah ,
Recently i had a surgery which costed me around 85K , my corporate insurance company reimbursed only 60K So my question here is Can I show remaining 25k as medical expense ? if yes please provide the details.

Hi, I have Medical Insurance Premium of amount 15000 as my CTC component. Can I avail tax benefit under 80 D on this amount?

Hey @Simran_Anees_Pinjari,

No, you will not be able to claim a deduction u/s 80D as the premium is paid by the company.

Hope this helps!

@Surbhi_Pal thank for reply, but this amount is deducted from my yearly salary structure so this should be exempted