Section 80DDB of Income Tax Act: Diseases Covered, Form, Certificate & Deductions

In case of senior citizens Rs 1 lac or actual expenses, whichever is less.

Deduction Under Section 80DDB

Section 80DDB of the Income Tax Act in India provides deductions for expenses incurred on the medical treatment of specified diseases, subject to such conditions and capped at such amount as specified, under the Income Tax Act. This section is applicable to individual taxpayers, Hindu Undivided Families (HUFs), and residents. The payment for health insurance is covered under Section 80D of the Income Tax Act.

Who can claim a deduction under Section 80DDB of the Income Tax Act?

The deduction u/s 80DDB for the expenditure on the medical treatment of the specified diseases can be claimed by–

• Deductions under Section 80DDB can be claimed only by individuals and HUFs.
• Section 80DDB deduction can not be claimed by corporates or any other entity.
• The deduction under section 80DDB can be claimed only by the assessee who is a resident of India during the relevant previous year.
• NRIs are not eligible for this deduction.
• Section 80DDB can be claimed only by the person who has actually incurred the expenses.

How much deduction is allowed under Section 80DDB?

The amount of the deduction depends on two factors - the age of the patient and the actual amount of expenditure.

The amount is capped at the following:

• The actual amount being paid for the treatment
• or the sum of Rs. 40,000 /– (in case the patient is a Normal citizen)
• whichever amount is less.

In the case that the respective patient is a senior citizen, then the maximum deduction amount is Rs. 1 lakh. Or actual expenses incurred, whichever is less.

Section 80DDB deduction limits

Please note the following points in this context-

• The deduction amount is strictly based on the age of the person availing the medical treatment and not on the age of the person claiming the deduction.
• The deductions are always claimed with respect to the actual expenses incurred during the relevant financial year.
• In the case when the dependent is already insured by any insurer or company and some payment is received either from the insurer or by way of reimbursement from his employer- the insurance amount must be subtracted from the deduction allowable. For example, if you are eligible for Rs. 1 lakh and you received Rs. 40,000 from the Insurance Company, then you are eligible for a Rs. 60,000 deduction under this section.

List of medical treatments allowed under Section 80DDB

Specified diseases covered u/s 80DDB are defined under rule 11DD of the income tax. The following are the medical conditions/diseases for which one can claim deductions as per the expenses of the treatment. These are highly specified diseases, and one needs the prescription of the respective specialists in order to confirm them-

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What documents are required to claim tax deduction u/s 80DDB?

You can claim the deduction u/s 80DDB at the time of filing ITR. There should be proof that the medical treatment is actually being undertaken and a prescription/certificate from the doctor stating the person is suffering from any disease specified under Section 80DDB.

For the same reason, the prescription given by the specialist doctor is among the most important documents. Where the treatment has been received in a government hospital, the prescription may be issued by any specialist working full-time in that hospital and having a PG degree in General or Internal Medicine or an equally recognized degree. In the case of a government hospital, a prescription should also contain the name and address of the government hospital.

How to Get a Certificate/Prescription of the Disease for 80DDB Deduction?

To claim a deduction under Section 80DDB for medical treatment of specified diseases, you need to obtain a certificate from a specialist doctor. Here's the process to get a certificate for claiming the deduction:

• Visit a Specialist Doctor: Schedule an appointment with a specialist doctor who is relevant to the disease you or your dependent is suffering from. The doctor should be practicing in a government hospital.

• Medical Examination and Diagnosis: Undergo a medical examination by a specialist doctor who will diagnose the disease and prescribe the treatment.

• Request for Prescription: Request the specialist doctor to provide a detailed prescription mentioning the name and details of the patient, the disease diagnosed, and the recommended treatment. This prescription is crucial for claiming the deduction.

• Prescribed Format: The prescription should be in a prescribed format and should include the doctor's registration number, hospital details, and other relevant information.

• Disability Certificate (if applicable): In cases of neurological diseases where the disability is not less than 40%, a disability certificate issued by a prescribed medical authority is required. Ensure that this certificate is also obtained if applicable.

• Keep All Medical Bills and Receipts: Along with the prescription, keep all the bills and receipts related to the medical expenses incurred. This documentation serves as proof when claiming the deduction.

• Submit the Prescription with the Income Tax Return: When filing your income tax return, provide details of the prescription and medical expenses in the relevant schedule. Keep the original prescription and other documents safe for reference and possible future audits.

• No Specific Government Form: Unlike disability certificates that may require a specific government form, the prescription itself serves as the primary document for claiming the deduction under Section 80DDB.

What should be mentioned in the certificate?

The certificate should include the following details to ensure completeness:

• Patient's name and age
• Name of the disease or ailment
• Name, address, and registration number of the specialist issuing the certificate
• Qualifications of the specialist
• If the patient is receiving treatment in a Government hospital, the certificate should also include the name and address of the hospital.

This prescription form is submitted to the income tax department while filing the income tax return. Practically, no document is attached to the ITR; it is advised to keep a copy of the prescription for future reference.

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