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Section 80DDB

Section 80DDB includes tax deductions for specified diseases for individuals and HUFs. In other words, if the expenditure related to the medical treatment of a dependent fall upon self or the family member like parent, sibling, spouse, and so on, and that person has been living in India for that tax year, then he can claim tax deduction under Section 80DDB.

When Can You Claim Deduction Under Section 80DDB?

Individual taxpayers and Hindu Undivided Families are eligible for tax deductions for medical treatment related to certain ailments and diseases under Section 80DDB (HUF). The tax deduction can be claimed under the following conditions

  • Can be claimed by individual taxpayers or HUF
  • It is given to resident Indians.
  • When the individual taxpayer has borne the medical expenses of the dependant. Spouses, children, parents, or siblings are considered as dependents.
  • If the dependent is insured and some remittance is also received from an insurer or reimbursed from an employer, such insurance or compensation received shall be subtracted from the deduction.

How Much Deduction Can Be Claimed Under Section 80DDB?

Deductions amounts can be claimed as follows under Section 80DDB

For the financial year 2014 to 2015, which is the assessment year 2015 to 2016

  • An assessee can claim a tax deduction of the minimum amount between Rs. 40,000 or the actual amount paid.
  • Senior citizens aged above 60 can claim a tax deduction of the minimum amount between 60,000 or the amount actually paid.

For the financial Year 2015-16 onwards, which is the assessment Year 2016-17

  • An assessee is eligible for a tax deduction of Rs. 40,000 or the actual medical expenditure made for the treatment, whichever is minimum.
  • Senior citizens aged between 60 and 80 can claim a tax deduction of the minimum amount between Rs. 60,000 or the actual amount paid towards the medical treatment.
  • Super senior citizens aged above 80 years are eligible for a tax deduction of the lower amount between Rs. 80,000 or the actual amount paid towards the medical treatment.

From Financial Year 2018-19 onwards (The assessment Year 2019-20)

  • An assessee is eligible to claim a tax deduction of Rs. 40,000 or the actual amount paid towards the medical treatment, whichever is lower.
  • Senior citizens, above the age of 60 years, are eligible for a tax deduction of Rs. 1,00,000 or the actual medical expenses incurred, whichever is lower.

What Are the Diseases or The Medical Ailments For Which Deduction Can Be Claimed Under Section 80DDB?

According to the income tax department, tax deduction can be claimed under Section 80DDB for the following diseases or maladies.

1) Neurological diseases, where the disability level is testified to be 40% or more.

  • Dystonia Musculorum Deformans
  • Dementia
  • Aphasia
  • Ataxia
  • Chorea
  • Hemiballismus
  • Motor Neuron Disease
  • Parkinson’s Disease

2) Malignant Cancers

3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

4) Chronic Renal failure

5) Hematological disorders

  • Thalassaemia
  • Hemophilia

What Are The Documents Required To Claim Deduction Under Section 80DDB?

To claim deduction under Section 80DDB of the Income Tax Act, 1961, the claimant has to submit the proof of medical treatment. A certificate has to be obtained from the person who has given you the medical treatment. The following specialists can issue the certificate to be eligible for deduction under Section 80DDB

DiseaseSpecialist
Neurological diseases, where the disability level is certified to be 40% and aboveA neurologist with a Doctorate of Medicine (D.M.) in Neurology or any other equivalent degree that is accepted by the Medical Council of India
Malignant cancersOncologist having a doctorate in medicine
Full Blown Acquire Immunodeficiency SyndromeA specialist who is a postgraduate in internal medicine or who possesses an equivalent degree.
Chronic Renal FailureA nephrologist with a doctorate in nephrology or a Urologist with a Master of Chirurgiae
Hematological disordersOne who holds a doctorate in Hematology or who has a degree accepted by the medical council of India

What Is The Format Of The Prescription For Claiming 80DDB Deduction?

The content of the certificate or prescription given by the specialist pertaining to the relevant field should be in the laid down format. Previously, Form 10-I was required for the same, but that format has been rejected now. However, it is needed if the dependent is a victim of disabilities, such as Autism and Cerebral Palsy. Currently, the following elements must be present in the prescription.

Patient Details:

  • Name of the patient
  • Age of the patient
  • The name of the disease or the malady

Details about the specialist:

  • The doctor’s name
  • The doctor’s address
  • The doctor’s qualification
  • The registration number
  • If the treatment is being done in the government hospital, then its name and address should be mentioned. The form must be duly signed by the relevant head doctor in the hospital.
  • If the treatment is done at a private hospital, then the certificate can be collected from the private hospital. The patient does not have to go to a government hospital to collect the same.
  • Paid insurance premium receipts for tax deduction under Section 80DDB against an insurance policy.

This prescription form is to be furnished to the income tax department when filing the income tax return. No copy is attached to the income tax return, and it is advisable to keep the copy for future reference.

How To Fill The Form For Claiming Deduction Under Section 80DDB?

You can fill out the form using the following steps:

  • You fill in the patient’s name, father’s name, and address.
  • If you are the person on whom the patient is dependent on, give details about yourself - name, address, and relationship with the person.
  • Specify the name of the disease and the percentage of disability.
  • Furnish details about the specialist who is treating you. Fill out the name, address, registration, and qualification of the doctor.
  • Fill in the name and address of the hospital.
  • There is a verification section that must be filled in.
  • Also, the form should be duly acknowledged by you and the head of the government hospital. The doctor must hold a postgraduate degree in general or internal medicine.

Conclusion

Section 80DDB is a great boon to the people in India. It aims to provide a protective cover for the diseased by enabling the person who bears his medical treatment expenditure to claim the tax deduction. In this way, it also helps the person who bears the expenses. One must avail of this deduction and claim it with the required prescription form and formalities.

FAQS

1. Can we claim both Section 80DDB and Section 80DD?

Section 80DD and Section 80DDB deductions can be claimed by both resident individuals or Hindu Undivided Families. Section U can be availed only by resident individuals. None of these benefits can be claimed by non-resident individual taxpayers.

2. How should one get the 80DDB certificate?

The 80DDB certificate can be obtained from the doctor. The specialist can be a neurologist having a Doctorate in Medicine (MD) in Neurology. A pediatric neurologist having an equivalent degree is sufficient to provide the certificate for children. Else, he must be a civil surgeon or a chief medical officer in a government hospital.

3. Does 80DD require proof?

The taxpayer will have to furnish the medical certificate copy which testifies the Malady of the patient to claim tax deduction under Section 80DD.

4. Does paralysis come under Section 80DDB?

Yes. paralysis is a neurological disease and it falls under the set of diseases for which one can claim tax deduction under Section 80DDB

5. Can an employer allow deduction under 80DDB?

The maximum amount of deduction allowed from gross total income on the condition that no medical reimbursement is received from any insurance company or employer for this amount.

6. Will I get audited for medical expenses?

If you claim deductions for charity or medical expenses to lower the amount of tax paid, then you will not necessarily be audited for the medical expenses. But when you claim considerable deductions in proportion to your income, then you will get audited.

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