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?

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?

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.

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