What is Section 80DDB?
Section 80DDB provides for a deduction to Individuals and HUFs for medical expenses incurred for the treatment of specified diseases or ailments. Section 80DDB of the Income Tax Act in India allows deductions for expenses incurred on the medical treatment of specified diseases like cancer, dementia, motor neuron diseases, Parkinson’s disease, AIDS, and chronic renal failure. 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. This section acknowledges the financial strain caused by medical conditions and hence seek to provide some tax benefits.
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–
- Resident Individuals and HUFs.
- Section 80DDB can be claimed only by the person who has actually incurred the expenses. This means if you or any dependent family member or even a member of your HUF has undergone medical treatment for specific ailments, you could be eligible.
Diseases Covered 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-
| Specified Diseases |
Prescription in respect of these diseases shall be issued by |
Neurological Diseases(with disability level certified 40% and above)
- Dementia
- Dystonia musculorum
- Deformans
- Motor neuron disease
- Ataxia
- Chorea
- Hemiballismus
- Aphasia
- Parkinsons disease
|
Neurologist(having DM or equally recognized degree) |
| Malignant cancers |
Oncologist(having DM or equally recognized degree) |
| Full Blown Acquired Immuno Deficiency Syndrome (AIDS) |
A Specialist(having a PG in general or internal medicine or an equivalent degree) |
| Chronic Renal Failure |
Nephrologist (having DM or equally recognized degree) Or Urologist(having MCh in Urology or equivalent degree) |
- Hematological disorders
- Haemophilia
- Thalassemia
|
A Specialist (having DM in Hematology or an equally recognized degree) |
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 maximum deduction is up to Rs.40,000 or the actual amount paid (whichever is less) for patients under 60 years of age and Rs.1 lakh or the actual amount (whichever is less) for senior citizens i.e. above 60 years of age.
Section 80DDB deduction limits
| Patient’s Age |
Maximum Limit(Rs.) |
| Individuals(less than 60 years) |
40,000 |
| In the case of a senior citizen (aged 60 years or more) |
Upto Rs. 1,00,000 |
| Above 80 years of age |
Upto Rs.1 lakh |
How to Claim Deduction Under Section 80DDB?
Claiming tax benefits under Section 80DDB requires the filing of your income tax return. It's crucial to maintain precise records of all medical expenses incurred and obtain the requisite medical certificates. Adhering to specified procedures and filing your return on time are essential steps to maximize the benefits of this provision.
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.
Things to Remember While Claiming the Deduction
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.
- Dependents of an individual include spouse, parents, brother, sister, and children.
- For HUF, a member of the family is the dependent.
- In order to claim the deduction, you must obtain a certificate from specialists depending on the type of disease.
How to Get a Certificate/Prescription for 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:
At the time of income tax return e filing, 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.
List of Diseases and the Experts Qualified to Issue Certificates under Section 80DDB
| Serial No |
Disease |
Certificate to be taken from |
| (i) |
Neurological Diseases where the disability level has been certified to be of 40% and above —
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h)Parkinsons Disease
|
Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology
or
any equivalent degree, which is recognised by the Medical Council of India
|
| (ii) |
Malignant Cancers |
Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology
or
any equivalent degree which is recognised by the Medical Council of India
|
| (iii) |
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) |
any specialist having a post-graduate degree in General or Internal Medicine,
or
any equivalent degree which is recognised by the Medical Council of India
|
| (iv) |
Chronic Renal failure |
a Nephrologist having a Doctorate of Medicine(D.M.) degree in Nephrology
or
a Urologist having a Master of Chirurgiae(M.Ch.) degree in Urology
or
any equivalent degree, which is recognised by the Medical Council of India
|
| (v) |
Hematological disorders
(i) Hemophilia
(i) Hemophilia
(ii) Thalassaemia
|
a specialist having a Doctorate of Medicine (D.M.) degree in Hematology
or
any equivalent degree, which is recognised by the Medical Council of India
|
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.
To complete the Section 80DDB Form, follow these steps:
- Step 1. Provide the applicant's name.
- Step 2. Enter the applicant's father's name and address.
- Step 3. Include the name and address of the dependent person.
- Step 4. Specify the relationship between the applicant and the dependent.
- Step 5. Fill in the name of the disease according to Rule 11DD.
- Step 6. Indicate the level of disability.
- Step 7. Provide details of the government hospital, including name and address.
- Step 8. Enter the name, address, qualifications, and registration number of the treating doctor.
- Step 9. Sign the form and verify the information for accuracy.
Difference between sections 80DD and 80DDB?
Section 80DD refers to the expenses incurred in maintaining and caretaking a dependent family member with a major disability. On the other hand, Section 80DDB refers to the expenses of medical treatment for specified diseases and medical conditions. Deductions under section 80DD could be regular, while section 80DDB deductions can be temporary.
Amendment to Section 80DDB by the Finance Act 2015
The Finance Act 2015 brought a significant amendment to Section 80DDB, simplifying the process for individuals seeking tax deductions for medical treatments. This amendment was introduced to make it more convenient for taxpayers suffering from specified medical ailments to claim deductions.
Under the revised provision:
- Taxpayers can now submit a certificate from a specialist doctor for the ailment for which they are seeking treatment.
- The doctor issuing the certificate can be employed at either a government-run hospital or a private hospital.
Previously, the law required the certificate to be issued exclusively by a specialist doctor working in a government hospital, which often created unnecessary barriers for taxpayers.
This amendment ensures greater accessibility and flexibility, allowing individuals to focus on their treatment without the added burden of restrictive documentation requirements.
If you or your dependents have incurred medical expenses for specified diseases, you might be eligible for substantial deductions under this provision. Our team of experts is here to guide you through the process, ensuring compliance with all regulations and helping you maximize your tax savings. File ITR with Tax Experts Today.
