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Diseases covered, eligibility, deduction limit, how to claim FY 2021-22 (AY 2022-23) Introduction Section 80DDB provides a deduction for the expenditure actually incurred on the treatment of specified diseases for self, spouse, children, parents and siblings. The list of specified diseases is covered by Rule 11DD of the income tax. Often people confuse Section 80U, Section 80DD and Section 80DDB when claiming the deduction benefit at the time of filing ITR. In this guide we will answer all your queries related to section 80DDB.
The deduction u/s 80DDB for the expenditure on the medical treatment of the specified diseases can be claimed by--
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.
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:In the case that the respective patient is a senior citizen then the maximum amount of deduction is Rs.1lakh.
Section 80DDB deduction limits
Patient’s Age | Maximum Limit(Rs.) |
Individuals(less than 60 years) | 40,000 |
In case of a senior citizen (aged 60 years or more) | 1,00,000 |
Please note the following points in this context-
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-
Specified Diseases | Prescription in respect of these diseases shall be issued by |
Neurological Diseases(with disability level certified 40% and above)
|
Neurologist(having DM or equally recognized degree) |
Malignant cancers | Oncologist(having DM or equally recognized degree) |
|
A Specialist(having PG in general or internal medicine or equivalent degree) |
|
Nephrologist (having DM or equally recognized degree) Or Urologist(having MCh in Urology or equivalent degree) |
|
A Specialist(having DM in Hematology or equally recognized degree) |
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.
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.
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. s
Yes. But, subject to fulfillment of other conditions.
It is a Neurological Disorder hence it will fall under the deduction category.
No, it is not covered under the specified disease category.
Stroke rehabilitation is not covered under the specified disease category of section 80DDB.
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.
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.
Section 80DD and section 80DDB can be distinguished on the following points:
Particulars | Section 80DD | Section 80DDB |
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 or Rs 40,000 (age< 60) Rs 1,00,000 (age 60 or above) (whichever is less) |
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