Can medical expenditure deduction be claimed if already covered under CGHS?

Can one claim medical expenditure deduction if already covered under CGHS?

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I am a senior citizen availing CGHS benefits. Last year, I underwent hip replacement surgery for which the hospital bill was around Rs 4 lakh. The hospital informed me that I would have to pay about Rs 2 lakh, which CGHS does not reimburse, while the remaining amount would be sent to CGHS for reimbursement. I understand that under Section 80D, a senior citizen can claim up to Rs 50,000 for medical expenses incurred. Can I claim this deduction of Rs 50,000 against the Rs 2 lakh actually paid by me to the hospital, despite being a CGHS beneficiary, while filing my ITR?

Expert Advice: As per the provisions of Section 80D, an individual is eligible to claim up to Rs 25,000 towards health insurance premiums for their family. An additional Rs 25,000 can be claimed for premiums paid for parents. In case the insured person is a senior citizen, the deduction limit increases to Rs 50,000. Please note, deductions under Section 80D (and other such provisions) are available only if you opt for the old tax regime.

The law further provides that if no amount has been paid to buy or maintain a health insurance policy for the senior citizen or their parents, then a deduction of up to Rs 50,000 can be claimed for medical expenses actually incurred. This deduction can be claimed by the senior citizen, their spouse, or their children separately for expenses incurred. To be eligible, payments must be made in a mode other than cash (except for preventive health check-ups, where cash payments up to Rs 5,000 are allowed within the overall Rs 50,000 limit).

Since the Central Government Health Scheme (CGHS) is not entirely free and requires beneficiaries to make monthly, annual, or one-time contributions, you are considered already covered under a health plan. As a result, you are not eligible to claim a deduction under Section 80D for the medical expenses incurred on your hip replacement surgery

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