How can one save taxes on medical expenses?

1. Health Insurance Policy

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. Foe senior citizen, the limit is increased to ₹50,000.

Additional deduction of up to ₹25,000 is allowed for premiums paid on a health insurance plan for the parents. If parents are senior citizens, the deduction is 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 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. Dependents with disability

Treatment of the disability of a dependent family member: parents, spouse, children, and siblings, can  be claimed 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. Deduction can be claimed up to ₹1,25,000 for any severe disability (i.e. 80%).

3. Treatment of the specified disease

A deduction of up to ₹40,000 can be claimed under section 80DDB 1 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.

Deduction allowed is ₹1,00,000 for senior citizens. However, the amount of the deduction shall be first adjusted with the reimbursement received by the insurance company or employer.

4. 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.