Who can claim a deduction under Section 80DDB of income tax?
The deduction u/s 80DDB for the expenditure on the medical treatment of the specified diseases can be claimed by--
- Resident Individuals(Indian or foreign citizen) for self, spouse, children, parents, brothers and sisters.
- HUF for any member of the family
wholly/partly dependent on such taxpayer for his/her support & maintenance
NRI’s are not eligible for this deduction.
Therefore, the residential status of individuals determines the eligibility for deduction u/s 80DDB.
The deductions cannot be claimed under a long term or short term capital gains covered under Section 111A, winnings from horse races or lotteries or their likes.
What is the amount of deduction u/s 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:
The actual amount being paid for the treatment
- or the sum of Rs. 40,000 /– (in case the patient is Normal citizen)
- whichever amount is less.
In the case that the respective patient is a senior citizen then the maximum amount of deduction is Rs.1lakh.
Section 80DDB deduction limits
|Individuals(less than 60 years)
|In case of a senior citizen (aged 60 years or more)
Please note the following points in this context-
- The amount of the deduction 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 dependant 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 Rs. 60,000 deduction under this section.
What is the list of specified diseases 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-
||Prescription in respect of these diseases shall be issued by
|Neurological Diseases(with disability level certified 40% and above)
- Dystonia musculorum deformans
- Motor neuron disease
- Parkinsons disease
| Neurologist(having DM or equally recognized degree)
||Oncologist(having DM or equally recognized degree)
- Full Blown Acquired Immuno Deficiency Syndrome (AIDS)
|A Specialist(having PG in general or internal medicine or equivalent degree)
||Nephrologist (having DM or equally recognized degree)
Urologist(having MCh in Urology or equivalent degree)
||A Specialist(having DM in Hematology or equally recognized degree)
What documents are required & How to claim 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 the prescription from the doctor stating the person is suffering from any disease specified under section 80DDB.
For the same, the prescription given by the specialist doctor is among the most important documents. Where the treatment has been received in a government hospital then 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 equally recognized degree. In the case of a government hospital, a prescription should also contain name and address of the government hospital.
What is the Prescription Format for claiming 80DDB deduction?
While it is a must that the prescription from the qualified specialists of the relevant field, the content of the prescriptions should strictly follow the assigned format. Earlier, Form 10-I was required for the same but that has been turned down. In the present case, the following parameters are a must and should be specified in the prescription.
- Name of the Patient
- Age of the Patient
- Name of Disease or Ailment
- The specialist doctor issuing the prescription must specify his/her name, address, qualification and registration number.
- In the case that the treatment is being undertaken in a government hospital, the name and address of the government hospital must be mentioned.
- The form must be signed by the head doctor in the hospital as per the case.
This prescription form is submitted to the income tax department while filing the income tax return. Practically no document is attached with ITR, it is advised to keep a copy of the prescription for future reference.
Medical impairments are often crippling and involve huge medical expenditures. The Income Tax Act provides a deduction in respect of these expenditures u/s 80DDB. Section 80DDB is a very important section of the Income Tax Act under which tax benefit can be claimed of Rs 1,00,000 in case of senior citizens and Rs 40,000 for expenditure incurred on treatment of specified diseases and ailments in other cases. All you need to have is a prescription from qualified specialists.
Frequently Asked Questions
Q- Can 80dd and 80ddb be claimed together?
Ans: Yes. But, subject to fulfillment of other conditions.
Q- Does paralysis fall under income tax 80DDB deduction category?
Ans: It is a Neurological Disorder hence it will fall under the deduction category.
Q- Can I claim dental treatments like root canal under section 80DDB of the Income Tax Act?
Ans: No, it is not covered under the specified disease category.
Q- Does the stroke rehabilitation fall under rebatable sections 80DD/80DDB of the Income Tax Act?
Ans: Stroke rehabilitation is not covered under the specified disease category of section 80DDB.
Q- Is diabetes covered under section 80DDB of the Income Tax Act?
Ans: Section 80DDB provides an exclusive list of specified diseases for which tax benefit under this section can be taken and it does not include diabetes.
Q-Is cancer covered under section 80DDB of the Income Tax Act?
Ans: Yes, section 80DDB of the income tax act specifically includes “Malignant cancers” and expenditures incurred for medical treatment of self/dependent in respect of the same can be claimed as a tax benefit.
Q- What is the difference between section 80DD and 80DDB?
Ans: Section 80DD and section 80DDB can be distinguished on the following points:
|Benefit to whom
||To the taxpayer taking medical care of a disabled dependent
||To Self for medical treatment of self/dependent suffering from specified diseases
|Amount of Deduction
||Flat Rs 75,000 (non-severe disability)
Flat Rs 1,25,000 (severe disability)
||Amount actually spent
Rs 40,000 (age< 60)
Rs 1,00,000 (age 60 or above)
(whichever is less)