Section 80DDB is applicable to an individual and HUF with effect from first of April 2004. Under Section 80DDB, an individual or HUF can claim tax deduction up to a maximum amount of Rs. 40, 000 for medical treatment expenses paid during the previous year. In the case of senior citizen the deduction amount can go up to Rs. 60, 000.
Who are eligible for tax deduction on medical treatment – Section 80DDB
Following persons are eligible to claim tax deduction under section 80DDB for their medical treatment subject to fulfillment of other terms and conditions;
- A salaried or self employed person and any other individual taxpayer.
To claim tax deduction under section 80DDB for medical treatment, the taxpayer is to be a resident in India.
A foreign citizen who is resident in India can also take tax benefit of section 80DDB as this section will be applicable to them as well.
Persons for whom Medical expenses are to be incurred – Section 80DDB
To claim tax deduction under section 80DDB, medical expenses are to be incurred for medical treatment of;
- The taxpayer himself or
- Wholly dependent spouse, Children, Parents, Brothers and Sisters of the taxpayer or any of them
In case of a HUF, medical expenditures are actually to be incurred and paid for the medical treatment of any member of the HUF family. If HUF claimed exemption for the medical treatment then members of such HUF can not claim tax deduction under section 80DDB for the same amount.
Tax Deduction Limit – Section 80DDB
A maximum tax deduction of Rs. 40, 000 can be claimed under section 80DDB. If taxpayer has incurred a lesser amount towards medical treatment then such lesser amount will be allowed as income tax deduction i.e. the amount of tax deduction under section 80DDB is Rs. 40, 000 or the amount actually paid which ever is lower.
If amount paid with respect to taxpayer or dependent spouse, children, parents, brothers and sisters of such taxpayer or any of them who is a senior citizen then tax deduction under section 80DDB can be claimed upto Rs. 60, 000 i.e. the available amount of tax deduction under section 80DDB is Rs. 60, 000 or the amount actually paid which ever is lower.
A senior citizen is a person who is resident in India and who is at least 60 years of age at any time during the previous year.
Other conditions to claim tax deduction – Section 80DDB
- To claim tax deduction under section 80DDB for medical treatment you have to actually paid such amount during the previous year for the medical treatment of specified disease or ailment as prescribed by the board.
- To claim the benefit of section 80DDB, the tax payer has to get a certificate in the prescribed form from a neurologist, an oncologist, a urologist, a hematologists, an immunologist or such other specialist as many be prescribed, working in a Government Hospital. As per the new law, to claim tax deduction under section 80DDB for medical treatment, the taxpayer is not required to submit the certificate to income tax department. Instead he has to keep the certificate with him and in case asked by the assessing officer then such certificate need to be produced before the assessing officer.
- Tax deduction claimed under section 80DDB will be reduced by the amount received under insurance from an insurer or reimbursed by an employer.
FAQ on Section 80DDB – Tax Deductions for Medical Treatment
What are the specified diseases and ailments for the purpose of deduction under section 80DDB of income tax act, 1961?
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
- Dementia ;
- Dystonia Musculorum Deformans ;
- Motor Neuron Disease ;
- Ataxia ;
- Chorea ;
- Hemiballismus ;
- Aphasia ;
- Parkinsons Disease ;
(ii) Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iv) Chronic Renal failure ;
(v) Hematological disorders :
(vi) Hemophilia ;
To know more on specified diseases under section 80DDB please read our article on rule 11DD of IT Act.
Who can issue a certificate under section 80DDB of income tax act?
Following persons can issue certificate to claim income tax deduction under section 80DDB for medical treatment;
For Neurological Diseases – a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognized by the Medical Council of India
For Malignant Cancers – an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognized by the Medical Council of India
For Chronic Renal failure – a Nephrologists 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 recognized by the Medical Council of India;
For Hematological disorders – a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognized by the Medical Council of India
Provided that where in respect of any diseases or ailments specified in sub-rule (1), no specialist has been specified or where the specialist specified is not posted in the Government hospital in which the patient is receiving the treatment, such certificate, with prior approval of the Head of that hospital, may be issued by any other specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine, which is recognized by the Medical Council of India.
Format of the Certificate that need to be obtained from a doctor to claim deduction under section 80DDB
I have incurred Rs. 30, 000 as medical expenses for my grand father on Chronic Renal Failure. Can I claim it as tax deduction under section 80DDB?
No, you are not eligible for this deduction as section 80DDB does not allow any payment for medical treatment of grand father as deduction.
I am a NRI and have incurred Rs. 24, 000 as medical expenses for medical treatment of my dependent mother who is suffering from Hematological disorders. Can I claim this amount as income tax deduction under section 80DDB against my taxable income that I am generating in India?
No, section 80DDB is not applicable for a taxpayer who is a non resident even though the person for whom you are making payment is a resident.