In India, the Income Tax Act allows taxpayers to claim deductions for medical expenses under specific sections. Here are the key provisions.
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Section 80D
Under Section 80D, you can claim deductions for health insurance premiums paid for yourself, your spouse, children, and parents. The maximum deduction allowed depends on the age of the insured individuals and the type of coverage.
Section 80DD
If you have a dependent family member with a disability, you can claim deductions under Section 80DD. This section provides deductions for expenses incurred on medical treatment, rehabilitation, or maintenance of the disabled dependent.
Section 80DDB
Individuals or their dependents suffering from specified diseases can claim deductions under Section 80DDB. This section covers expenses incurred on medical treatment and specified diagnostic tests. Know more here.
Claiming Deductions for Medical Expenses
To claim deductions for medical expenses while self-filing your taxes, follow these steps:
- Collect Relevant Documents: Gather all the necessary documents to support your claim for medical expenses. This includes bills, receipts, medical certificates, health insurance premium statements, and reports related to diagnostic tests or treatment.
- Identify the Applicable Sections: Determine the relevant sections under which you can claim deductions based on the nature of your medical expenses. This could be Section 80D, 80DD, or 80DDB, depending on the specific circumstances.
- Fill the Relevant Sections in the Tax Return Form: When filling out your tax return form, ensure you accurately enter the details of the medical expenses and the deductions you are eligible for under the respective sections.
Calculate and Claim the Deductions: Calculate the eligible deductions for medical expenses based on the provisions of the selected sections. Enter the deduction amounts in the appropriate fields of the tax return form.
Understanding how to claim deductions for medical expenses is crucial. By familiarizing yourself with the relevant sections, collecting supporting documents, and accurately entering the deductions in your tax return form, you can effectively reduce your taxable income and ensure compliance while self-filing your taxes.
