Introduction
Section-80DDB of the Income Tax Act, 1961 provides for deductions for expenditure incurred towards medical treatment for specified diseases in case of individual or HUF assessees. ‘Specified Diseases’ as notified for the deduction are discussed separately in this article.
Who is eligible to claim deduction??
Section-80DDB provides for deduction to two categories of taxpayers:-
• Individuals
• Hindu Undivided Family (HUF)
But, deduction under this section shall be allowed to RESIDENT ASSESSEE ONLY. As such, Non-Resident assessee is not allowed to claim deduction u/s 80DDB.
What is the eligible expenditure for deduction??
Any Amount actually paid for the medical treatment of the specified diseases of the following is eligible for deduction u/s 80DDB:-
| In case of an Individual |
(a) Himself
|
| In case of Hindu Undivided Family (HUF) | Any Member of HUF |
What is the quantum of deduction??
• Amount actually paid during the year or Rs. 40,000 whichever is less
• In case of a senior citizen (60 years or more):- Amount actually paid or Rs. 1,00,000 whichever is less
Conditions for claiming deduction??
• For claiming a deduction under this section, it is required to obtain a prescription of the medical treatment from a prescribed specialist.
• For calculating eligible amount for deduction, any amount received from insurance company against medical cover or reimbursement by an employer, shall be reduced.
What are the specified diseases covered under section-80DDB??
• Hematological disorders-
(a) Hemophilia
(b) Thalassaemia
• Malignant Cancers
• Chronic Renal Failure
• Full Blown Acquired Immuno Deficiency Syndrome (AIDS)
• Neurological Disease where the disability level has been certified to be 40% or above:-
(a) Ataxia
(b) Parkinsons Disease
(c) Dementia
(d) Chorea
(e) Aphasia
(f) Motor Neuron Disease
(g) Dystonia Musculorum Deformans
(h) Hemiballismus
What are the documents required for claiming deduction u/s 80DDB??
For claiming deduction under this section, prescription in respect of the specified diseases as above shall be issued by the following specialists:-
| Nature of Specified Disease | Specialist prescribed for issuing prescription |
| Neurological diseases (having disability level 40% or above) | A Neurologist having a Doctorate of Medicine (D.M.) in Neurology or an equivalent degree recognized by Medical Council of India (MCI). |
| Full Blown Acquired Immuno Deficiency Syndrome (AIDS) | Any specialist having a PG degree in general or internal medicine, or an equivalent degree recognized by MCI. |
| Chronic Renal Failure | A Nephrologist with D.M. degree in Nephrology or a Urologist having a Master of Chirurgiae (M.ch.) degree in Urology or an equivalent degree recognized by MCI. |
| Malignant Cancers | An Oncologist with D.M. in oncology or an equivalent degree recognized by MCI. |
| Hematological disorders | A specialist having D.M. degree in Hematology or an equivalent degree recognized by MCI. |
Note:
It has been provided that where the patients is getting treatment for any of the above diseases in a Government Hospital, the prescription may be issued by any specialist working full time in that hospital and having a post-graduate degree in General or Internal Medicine or equivalent degree recognized by MCI.
Details to be mentioned in prescription??
• Name and age of patient
• Name of the disease or ailment
• Name and address of the specialist
• Registration number of the specialist
• Qualification of specialist
• Name and address of Government Hospital (where treatment is taken at Government Hospital)
For details refer:- https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=https://www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007232.htm&IsDlg=0
