How to Claim Medical Expenses Deduction for Parents
- Asharam Swain
- Nov 12, 2025
- 9 min read
Medical expenses for aging parents often form a major part of household spending. Under Section 80D of the Income Tax Act, taxpayers can claim deductions for medical insurance premiums and certain medical expenses incurred for their parents. This benefit is particularly valuable when parents are senior citizens without health insurance. By claiming this deduction correctly, taxpayers can reduce their taxable income and manage healthcare costs more efficiently.
Table of Contents
Eligibility to Claim Medical Expenses Deduction for Parents
Taxpayers can claim deductions for medical expenses incurred on their parents under Section 80D of the Income Tax Act, 1961. This benefit applies whether or not the parents have a health insurance policy. The key condition is that the taxpayer must have paid the expenses from their own income and the parents should be dependent on them. Both resident and non-resident taxpayers can claim this deduction, provided the payment is made through permissible digital modes. The deduction is especially beneficial when parents are senior citizens aged 60 years or above, as the limit increases significantly for this age group.
Deduction Limits under Section 80D for Parents
Section 80D allows specific deduction limits depending on the age of the parents. If both parents are below 60 years, the maximum deduction available is ₹25,000 per financial year. However, if one or both parents are senior citizens (aged 60 years or above), the deduction limit increases to ₹50,000 per year. This limit includes both health insurance premiums and actual medical expenses like consultation fees, medicines, or treatments. The overall maximum deduction under Section 80D, combining self, family, and parents, can go up to ₹1,00,000 if all insured members are senior citizens. Within these limits, preventive health check-up expenses up to ₹5,000 can also be claimed.
Eligible Medical Expenses and Payment Modes
The deduction under Section 80D is not restricted to health insurance premiums alone. It also covers medical expenses for parents who are not covered under any health insurance policy. Eligible expenses include doctor consultation fees, hospital treatment costs, purchase of medicines, diagnostic tests, and preventive health check-ups. However, cash payments are not eligible for deduction. Payments should be made through digital modes such as credit/debit cards, UPI, net banking, cheque, or other electronic methods. This ensures traceability and compliance with tax laws.
Documentation Required for Claiming Medical Expenses
Maintaining proper documentation is essential while claiming medical expenses under Section 80D. Taxpayers should keep all relevant medical bills, doctor’s prescriptions, hospital invoices, and pharmacy receipts. For insurance premiums, payment acknowledgments or premium receipts should be retained. If the deduction includes preventive health check-up costs, ensure that receipts specify the amount spent and the date of the check-up. These documents are not required to be submitted while filing the ITR but must be preserved for potential verification by the Income Tax Department.
Is Medical Expenses Deduction Allowed in the New Tax Regime?
Under the new tax regime introduced in Section 115BAC, most deductions and exemptions, including those under Section 80D, are not available. This means that taxpayers opting for the new regime cannot claim deductions for medical insurance premiums or medical expenses incurred for their parents. The new regime offers lower tax rates but eliminates common deductions to simplify compliance. Therefore, individuals seeking to maximize tax savings through health-related deductions should consider filing their returns under the old tax regime instead.
How Medical Expenses Deduction Works in the Old Tax Regime
In the old tax regime, Section 80D allows deductions for both health insurance premiums and actual medical expenses incurred for parents. If parents are below 60 years, the limit is ₹25,000 per financial year, while for senior citizen parents, it is ₹50,000. The deduction can be claimed even if the parents do not have a health insurance policy, provided the medical payments were made through acceptable digital modes. These deductions are subtracted from the total taxable income, thereby reducing overall tax liability. The old regime remains ideal for taxpayers who have substantial medical and insurance-related expenses for themselves and their dependents.
Step-by-Step Process to Claim Medical Expenses Deduction in ITR
Gather all bills, receipts, and insurance premium proofs related to your parents’ medical expenses.
Ensure all payments were made digitally—avoid cash transactions.
While filing your Income Tax Return, select the old tax regime to avail Section 80D deductions.
Enter the eligible deduction amount under the “Deductions under Chapter VI-A” section in your ITR form.
Review the total deduction amount for accuracy, ensuring it does not exceed the prescribed limits.
Submit your ITR and retain all documents for future reference or possible assessment queries.
Additional Deductions under Sections 80DD and 80DDB
Apart from Section 80D, taxpayers can explore additional deductions under other provisions for specific situations.
Section 80DD: Offers a deduction for expenses incurred on the medical treatment, maintenance, or rehabilitation of a dependent with a disability. The deduction limit is ₹75,000, which increases to ₹1,25,000 for severe disabilities (above 80%).
Section 80DDB: Provides deductions for medical expenses incurred on specified critical diseases such as cancer, kidney failure, or neurological disorders. The deduction limit is ₹40,000 for non-senior citizens and ₹1,00,000 for senior citizens. These provisions are particularly relevant for families dealing with high medical costs due to chronic illnesses.
Common Mistakes to Avoid While Claiming Section 80D Deduction
Many taxpayers lose out on eligible deductions due to common errors. One of the frequent mistakes is opting for the new tax regime, where the Section 80D benefit is unavailable. Others fail to maintain proper documentation or make payments in cash, which disqualifies the claim. Another oversight is claiming deductions for medical expenses not directly related to parents or exceeding the eligible limit. Taxpayers should also ensure that receipts clearly indicate the nature of medical expenditure and that payments are traceable through bank statements or digital records.
Why Use TaxBuddy for Claiming Medical Expenses Deduction
Filing taxes manually can often lead to missed deductions or calculation errors. TaxBuddy simplifies the process through AI-driven automation that detects eligible deductions like those under Section 80D. The platform auto-fills relevant details using data from Form 16, PAN, and Aadhaar, reducing manual effort and the risk of mistakes. For complex cases involving multiple deductions, TaxBuddy’s expert-assisted filing service provides personalized support and ensures accurate claim processing. This not only saves time but also helps optimize tax benefits without the stress of navigating complex tax provisions.
Conclusion
Claiming medical expenses deduction for parents under Section 80D is a simple yet impactful way to reduce tax liability while managing family healthcare costs efficiently. With higher deduction limits for senior citizens and the inclusion of uninsured medical expenses, this provision offers tangible relief to taxpayers supporting elderly parents. Maintaining proper documentation, choosing the old tax regime, and using a reliable filing platform are key to ensuring a smooth experience. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy offers both self-filing and expert-assisted ITR filing options to suit different taxpayer needs. The self-filing plan is designed for individuals with straightforward income sources such as salary, interest, or simple deductions like Section 80D. It allows users to file their returns independently with AI-driven guidance and automatic data pre-filling. On the other hand, the expert-assisted plan is ideal for those with multiple income sources, complex deductions, capital gains, or business income. In this plan, TaxBuddy’s tax experts review, prepare, and file the return on the user’s behalf, ensuring all eligible deductions are claimed correctly and compliance is maintained.
Q2. Which is the best site to file ITR? The official government portal (incometax.gov.in) is the statutory platform for filing income tax returns. However, most taxpayers find it easier and faster to file through platforms like TaxBuddy. It integrates automation and human expertise, offering guided assistance, pre-filled data from Form 16, and real-time validation of deductions. TaxBuddy also ensures accuracy in claiming eligible benefits like Section 80D medical expense deductions. The platform’s combination of AI-driven filing and expert review minimizes errors and enhances the user experience, making it one of the best sites for online ITR filing.
Q3. Where to file an income tax return? An income tax return can be filed through two main methods. The first is the official Income Tax e-filing portal, where users can log in, manually enter data, and submit returns. The second is through third-party e-filing platforms like TaxBuddy, which simplify the process. TaxBuddy automatically pulls income details from PAN and Form 16, detects applicable deductions such as Section 80D for medical expenses, and performs accuracy checks before submission. This ensures a smooth, compliant, and time-efficient filing experience without the hassle of manual data entry.
Q4. Can I claim medical expenses for both parents if only one is a senior citizen? Yes, deductions under Section 80D can be claimed for both parents even if only one of them is a senior citizen. In such cases, the higher deduction limit of ₹50,000 becomes applicable since at least one parent qualifies as a senior citizen (aged 60 years or above). The expenses can include health insurance premiums and medical bills paid for both parents. However, the total deduction cannot exceed ₹50,000 for the financial year. Taxpayers must ensure that payments are made through non-cash modes and that all receipts and medical bills are properly preserved.
Q5. Are cash payments eligible for medical expense deductions? No, payments made in cash are not eligible for deductions under Section 80D. The Income Tax Act specifically mandates that medical expenses and health insurance premiums must be paid through traceable, non-cash modes. These include cheque, debit or credit card, UPI, net banking, or mobile wallet transactions. The rule ensures authenticity and verifiability of the expenses claimed. However, an exception applies to preventive health check-up costs, which may be paid in cash, provided the amount does not exceed ₹5,000 within the overall limit of Section 80D.
Q6. What types of medical expenses are covered under Section 80D? Section 80D allows deductions for both preventive and curative medical expenses incurred on dependent parents. The scope includes doctor consultation fees, hospitalization charges, diagnostic tests, medicines, and treatment costs. It also covers expenses related to surgeries, chronic illness management, and routine health check-ups. For parents without health insurance, actual out-of-pocket medical expenses can be claimed up to the applicable limit. However, expenses reimbursed by insurance companies or employers cannot be claimed again as deductions. Maintaining clear documentation of each expense ensures eligibility during tax assessments.
Q7. Is preventive health check-up covered under Section 80D? Yes, preventive health check-ups are covered under Section 80D, up to a limit of ₹5,000 per financial year. This benefit is included within the overall deduction ceiling of ₹25,000 for parents below 60 and ₹50,000 for senior citizen parents. Preventive check-ups may include annual health screenings, diagnostic tests, or wellness programs undertaken to detect potential illnesses early. Taxpayers should retain receipts or invoices showing the payment mode and the name of the medical institution. It’s important to note that this ₹5,000 limit is not in addition to the overall cap but part of it.
Q8. What documents should be kept for claiming the deduction? To claim deductions under Section 80D, taxpayers must retain proof of payment and medical expenses. Key documents include hospital bills, doctor prescriptions, diagnostic test reports, and pharmacy receipts. For insured parents, premium payment receipts issued by the insurance company are required. If preventive health check-ups are claimed, invoices mentioning the nature of tests and the healthcare provider’s details should be maintained. All payments must reflect in bank statements or digital transaction records. These documents need not be submitted with the return but should be preserved for at least six years for verification by tax authorities.
Q9. Can the deduction be claimed under both Section 80D and 80DDB? Yes, deductions under Section 80D and Section 80DDB can be claimed simultaneously if the taxpayer meets the conditions specified under both sections. Section 80D allows deductions for general medical expenses and health insurance premiums, while Section 80DDB covers expenses for the treatment of specified critical illnesses such as cancer, kidney disease, or Parkinson’s. For senior citizens, the limit under Section 80DDB goes up to ₹1,00,000. Both deductions apply independently, provided payments are made through permissible modes and proper documentation is maintained. Combining both helps taxpayers manage healthcare costs more effectively.
Q10. Is medical expenses deduction available under the new tax regime? No, the new tax regime under Section 115BAC does not allow deductions under Section 80D. The regime offers simplified tax slabs with lower rates but removes most deductions and exemptions. This means taxpayers opting for the new regime cannot claim medical expense deductions for parents or themselves. Individuals who have substantial deductions like medical expenses, insurance premiums, or investments under 80C to 80U may find the old regime more beneficial. Evaluating both regimes before filing helps in determining which one leads to lower overall tax liability.
Q11. What happens if the total expense exceeds the deduction limit? If the total medical expenses exceed the specified deduction limit under Section 80D, only the maximum allowable amount can be claimed. For parents below 60 years, the limit is ₹25,000, and for senior citizens, it is ₹50,000 per financial year. Any amount spent beyond these limits cannot be carried forward or claimed in subsequent years. Taxpayers should plan medical expenses and insurance payments strategically to optimize tax benefits within the prescribed ceiling. Keeping detailed records ensures that the claim remains valid during scrutiny, even if only partial deduction is permitted.
Q12. Does TaxBuddy automatically identify eligible medical deductions? Yes, TaxBuddy’s AI-powered platform automatically identifies eligible deductions, including those under Section 80D, while analyzing your income and Form 16 data. The system cross-verifies health insurance premium payments, digital transactions, and medical expenses to ensure accurate deduction computation. Users are also prompted to upload relevant medical receipts and payment proofs for verification. If any potential deduction is missed, TaxBuddy’s expert-assisted plan reviews the case manually to ensure no benefit is overlooked. This automation helps taxpayers claim the maximum eligible deduction while ensuring full compliance with tax regulations.
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