Here’s how you can claim medical expenditure incurred on family to save taxes

• Medical insurance may be an umbrella cover for family — dependent children and parents — helping you save on your taxes.
  
• Taxpayers can also benefit from the medical expenditure incurred on the health of parents.
  
• Under the Section 80D of the Income Tax Act, expenditure amounting to ₹50,000 on health condition of parents — who fall in the senior citizen category — can be claimed as a tax rebate.
  
• The tax rule also allows deduction for preventive health check-up of ₹5,000.

Medical insurance offers an umbrella cover for family — dependent children and parents. But, medical expenditure on family can also come in handy for those wanting to claim tax deductions.

Under the Section 80D of the Income Tax Act, expenditure amounting to ₹50,000 on health condition of parents — who fall in the senior citizen category — can be claimed as a tax rebate. That is applicable to people aged 60 years and above.

However, there is flexibility on specific disabilities and diseases. Tax deductions can be claimed for the treatment of specific illness, under the section 80DDB of the Income Tax Act. For those under the age of 60, the maximum deduction that can be claimed is ₹40,000. While for those above the age bracket can claim up to ₹1 lakh.

Special illness that qualifies under the Income Tax guidelines

Low vision or blindness

Hearing impairment

Autism or mental illness

Locomotor disability

Cerebral Palsy

Leprosy

This deduction can also be claimed by senior citizens themselves. However, they should not have a health insurance cover to claim the expenditure and have all the medical bills to claim the tax benefit.

The tax rule also allows deduction for preventive health check-up of ₹5,000. "Preventive health check-up as the name itself suggests is an expense which one incurs on preventive measures for early detection and safeguard against possible exposure to any disease in future. On the other hand, deduction on medical expenditure would cover expenses incurred for treating existing diseases or ailments", Chetan Chandak, Head of Tax Research, H&R Block told ET.

In case of special medical treatment — rehabilitation and nursing, treatment of a person with disability — deductions can be claimed on the total income for taking take of the disable dependent. This is also applicable if the taxpayer has enrolled in an insurance scheme.

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