Section 80DDB of the Income Tax Act is a provision that allows taxpayers to claim deductions for the expenses incurred on the medical treatment of certain specified diseases for themselves or their dependents. The dependents can be the spouse, children, parents, or siblings of the taxpayer. The deduction amount depends on the age of the patient and the actual expenditure, subject to a maximum limit of Rs. 40,000 for individuals below 60 years and Rs. 1,00,000 for senior citizensa.
To claim the deduction, the taxpayer needs to obtain a certificate from a specialist doctor as per the list of diseases and qualifications given in Rule 11DD of the Income Tax Rules. The certificate should contain the name and age of the patient, the name of the disease, the name, address, registration number, and qualification of the doctor, and the name and address of the government hospital if the treatment is done there. The certificate should be submitted along with the income tax return.
Section 80DDB of the Income Tax Act provides a tax deduction for certain medical expenses incurred by an individual or their dependents. This deduction is available for individuals who are suffering from specified diseases or ailments that require specialized treatments. The deduction is over and above the deduction available under Section 80D for health insurance premiums and preventive health check-ups. The maximum deduction allowed under Section 80DDB is Rs. 40,000 per annum in case of self, spouse, children, and parents. For very senior citizens, the maximum deduction allowed is Rs. 1 lakh per annum. The deduction is applicable for medical expenses incurred for specified diseases or treatments like chemotherapy, radiation therapy, dialysis, etc., or for senior citizens and very senior citizens who require medical treatment for any illness or ailment. However, the total deduction under Sections 80D and 80DDB cannot exceed Rs. 2 lakhs per annum.
Section 80DDB of the Income Tax Act provides a tax deduction for certain medical expenses incurred by an individual or their dependents. The deduction is over and above the deduction available under Section 80D for health insurance premiums and preventive health check-ups. The maximum deduction allowed under Section 80DDB is as follows:
1. Rs. 40,000 per annum in case of self, spouse, children, and parents, for medical expenses incurred for specified diseases or treatments like chemotherapy, radiation therapy, dialysis, etc.
2. Rs. 1 lakh per annum in case of very senior citizens (aged 80 years or above) for medical expenses incurred for any illness or ailment.
The deduction under Section 80DDB of the Income Tax Act can be claimed by an individual who has incurred medical expenses for themselves, their spouse, children, or parents. The deduction is available for medical expenses incurred for specified diseases or treatments like chemotherapy, radiation therapy, dialysis, etc., or for senior citizens and very senior citizens (aged 80 years or above) for any illness or ailment. The deduction is over and above the deduction available under Section 80D for health insurance premiums and preventive health check-ups. However, the total deduction under Sections 80D and 80DDB cannot exceed Rs. 2 lakhs per annum.
The medical treatment for which a deduction can be claimed under Section 80DDB of the Income Tax Act is for the following individuals:
1. The individual claiming the deduction (self)
2. Spouse of the individual claiming the deduction
3. Children (including adopted children) of the individual claiming the deduction or spouse of the individual claiming the deduction
4. Parents (including adoptive parents) of the individual claiming the deduction or spouse of the individual claiming the deduction
Section 80DDB of the Income Tax Act allows a deduction for medical expenses incurred for the following specified diseases or treatments:
1. Neoplastic disease (cancer)
2. Chronic Renal Failure (CRF) requiring regular haemodialysis
3. AIDS and HIV infection
4. Leukemia
5. Multiple Sclerosis (MS)
6. Malignant Brain Tumor and Malignant Cancer of Head and Neck
7. Coma due to Road Accidents
8. Critical illnesses like Burns, Major Trauma, and Neurotrauma requiring treatment in ICU for a minimum period of 3 weeks or 21 days, whichever is less, and hospitalization for a minimum period of 30 days or 22 days, whichever is less.
To claim a deduction under Section 80DDB, the following documents are required:
1. Prescription from a registered medical practitioner (RMP) specifying the nature of the disease or ailment and the treatment required.
2. Hospital bills or receipts for medical expenses incurred.
3. Discharge summary or death certificate in case of critical illnesses like burns, major trauma, and neurotrauma requiring ICU treatment for a minimum period of 3 weeks or 21 days, whichever is less, and hospitalization for a minimum period of 30 days or 22 days, whichever is less.
4. In case of senior citizens and very senior citizens (aged 80 years or above), a certificate from an RMP stating that the person is suffering from a chronic ailment or disease requiring regular medical attention.
To claim the deduction u/s 80DDB, you need to follow these steps:
1. Calculate the eligible medical expenses incurred during the financial year.
2. If you are claiming deduction for critical illnesses, calculate the eligible amount based on the minimum period of ICU treatment and hospitalization as mentioned above.
3. If you are claiming deduction for senior citizens and very senior citizens, calculate the eligible amount based on the certificate issued by an RMP stating that the person is suffering from a chronic ailment or disease requiring regular medical attention.
4. The maximum deduction allowed under Section 80DDB is Rs. 40,000 per annum for senior citizens and Rs. 1 lakh per annum for very senior citizens (aged 80 years or above).
5. The total deduction under Sections 80D and 80DDB cannot exceed Rs. 2 lakhs per annum.
6. Claim the deduction while filing your income tax return (ITR).
7. Attach all necessary documents as proof of medical expenses incurred and certification from RMPs (if applicable).
The amount that can be claimed as a deduction under Section 80DDB depends on the nature of the disease or ailment and the age of the person claiming the deduction. Here’s a breakdown:
1. For specified diseases or treatments mentioned in Section 80DDB, such as cancer, chronic renal failure, AIDS, leukemia, multiple sclerosis, malignant brain tumor, and malignant cancer of head and neck, the maximum deduction allowed is Rs. 40,000 per annum.
2. For senior citizens (aged 60 years or above but below 80 years), the maximum deduction allowed for specified diseases or treatments is Rs. 40,000 per annum.
3. For very senior citizens (aged 80 years or above), the maximum deduction allowed for specified diseases or treatments is Rs. 1 lakh per annum.
4. For senior citizens and very senior citizens suffering from chronic ailments or diseases requiring regular medical attention, the maximum deduction allowed is Rs. 40,000 per annum for senior citizens and Rs. 1 lakh per annum for very senior citizens (aged 80 years or above).
The amount of deduction under Section 80DDB is adjusted with any reimbursement received for the same medical expenses. If you have received any reimbursement for the medical expenses incurred, you need to deduct the amount of reimbursement from the eligible medical expenses while calculating the deduction under Section 80DDB. This is done to prevent double tax benefits.
For example, if you have incurred medical expenses of Rs. 1 lakh and received a reimbursement of Rs. 50,000, your eligible medical expenses for claiming deduction under Section 80DDB would be Rs. 50,000 (Rs. 1 lakh – Rs. 50,000). The maximum deduction allowed under Section 80DDB in this case would be Rs. 40,000 (for senior citizens) or Rs. 1 lakh (for very senior citizens), whichever is less.