The following entities can claim a deduction from their income tax from Section 80 DDB:
The following are some points of concern while claiming the deduction under Section 80DDB-
The age of the person requiring medical treatment is an important factor in determining the amount that can be claimed for deduction under Section 80DDB. The amount is capped at the:
whichever amount is less in the case where the medical treatment expense is incurred for an individual or his dependant or a member of a HUF.
In the case that the respective patient is a senior citizen or very senior citizen, the amount of the deduction is :
One may note the following points to note in this context-
The following medical conditions are the cases 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-
As one may notice, there are five broad categories of diseases- malignant cancers, AIDS, Chronic renal failure, Haematological disorders and Neurological diseases. The section mainly intends to cover these major illnesses and doesn’t offer to cover the expenses of the more common diseases like cataract or C-section.
To claim the deduction under Section 80DDB, the prescription given by the specialist doctor is among the most important documents. This should be proof that the medical treatment is actually being undertaken for which a certain amount if required. Earlier, a government doctor was required for this proof, but now this bar has been removed. With effect from AY 2016-17, any qualified doctor can provide the document. He or she can be a doctor in a private hospital or a government hospital. The Rule 11D states the specifics of the prescription required as follows:
The degrees must necessarily be recognized by the Medical Council of India (MDI). If the treatment is undertaken in a government hospital itself, the prescription can easily be obtained from any of the specialists working full time with the hospital and having a postgraduate degree in general medicine.
While it is a must that the prescription be 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 since AY 2016-17. In the present case, the following parameters are a must to be specified in the prescription.
This prescription form is submitted to the income tax department while filing the income tax return.
The following steps must be followed while filling the Form 10-I to avail the deduction under Section 80 DDB-
Section 80 DDB is a very important section in the Income Tax Act meant to help the diseased with their ailments. One must take care of the specialist involved in order to produce an affirmed prescription. All the steps have been mentioned must be taken care of to avoid a rejection of the deduction in tax. Medical impairments are often crippling for almost a person’s lifetime and among several factors that can increase the problems, one of them is the economic situation of the person. Thereby, it’s important to have the government’s hand in case of such major diseases which take time and immense care to heal.
Ans: Yes. But an assessee can not claim deduction with respect to the same dependent disabled under section 80DD and 80DDB.
Ans: Assesse can make claim u/s 80DD only if he has not made any claim u/s 80U. Therefore deduction under both section cannot be claimed.
Ans: It is a Neurological Disorder hence fall under deduction category.
Ans: No, it is not covered under specified disease category.
Ans: Stroke rehabilitation is not covered under specified disease category of section 80DDB.
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