The season of filing tax returns has arrived and taxpayers are looking for every possible option to save their hard-earned money. If you or your parents are above 60 years of age and do not have any kind of health insurance (medical claim), then there is no need to worry. The Income Tax Department is giving you the direct benefit of tax exemption of up to Rs 50,000 on treatment expenses. Senior citizens get this relief under Section 80D of the Income Tax Act. However, to avail this great discount, it is very important that you file your ITR under the old tax regime. Taxpayers choosing the new tax system will not get any benefit from this rule.
On which expenses are great tax exemptions available?
Section 80D mainly provides an opportunity to save tax on three types of expenses. This includes firstly the health insurance premium, secondly the medical expenses of the uninsured elderly and thirdly preventive health checkup. Senior citizens who do not have health insurance can claim a maximum deduction of Rs 50,000 on treatment of their illnesses, medicines and hospital bills. Apart from this, a provision of additional discount of up to Rs 5,000 has also been made on routine checkups (preventive health checkups) done to prevent diseases.
Let us understand this with an example. Suppose a 65-year-old man does not have a policy and has spent Rs 45,000 on treatment in a year. In such a situation, they will get tax exemption on the entire Rs 45,000. At the same time, even if his medical expenses come to Rs 90,000, as per the income tax rules, the maximum exemption will be limited to Rs 50,000.
Children also get a chance to save tax
This rule is not limited only to the elderly. If the parents of a taxpayer are 60 years of age or more, do not have any medical policy and the entire expense of their treatment is being borne by the children, then those children can also demand this tax deduction in their ITR under Section 80D. The only thing to keep in mind is that tax exemption will be available only on medical bills which have been paid during the relevant financial year.
There will be huge loss if payment is made in cash
Often people pay hospital or medicine bills in cash, but this mistake can prove costly while saving tax. According to the rules, if you pay for medical treatment in cash, you will not get any tax exemption under Section 80D. It is mandatory to pay the bill through bank account, cheque, UPI or digital medium. However, the Income Tax Department has given some relief for preventive health checkup. You can also pay the expenses up to Rs 5,000 for this in cash.
If you want to avoid fine then remember these ITR dates
The benefit of tax exemption will be available only if you file your return on time. The Income Tax Department has set the last dates for different categories of people. Missing the deadline can result in heavy fines and interest:
| Category of ITR form | last date of filing |
| ITR-1 and ITR-2 (Salaried and General Taxpayers) | 31 July 2026 |
| ITR-3 and ITR-4 (Unaudited Business) | 31 August 2026 |
| ITR-3 and ITR-4 (audited cases) | 31 October 2026 |
| transfer pricing businesses | 30 November 2026 |
| Belated (late) return | 31 December 2026 |
| revised return | 31 March 2027 |
| Updated Return (ITR-U) | Between 1 April 2026 and 31 March 2030 |
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