Section 80DDB – Tax deduction for specified diseases

For certain specific diseases, Income Tax Department offers tax benefits to the individual u/s 80DDB on the basis of expenses incurred by him for the treatment of such diseases or ailment.

Eligibility


Tax deduction undersection 80DDB is available to all resident individuals as well as HUFs.
However, tax benefits are not available to NRIs.
In case the assessee is an individual, he can claim tax deduction if he incurred expenses for his own treatment or treatment of a dependent.
In case the assessee is an HUF, it can claim tax deduction for the expenses incurred in the treatment of any member of HUF.

Who qualifies as a dependent?


For the purpose of this section, dependents fall in two categories:

  • For individuals, a disabled dependent can be spouse, son / daughter (any child), parents, brother / sister (siblings).
  • For HUFs, a disabled dependent can be any member of the HUF.

80ddb

Specified diseases or ailments


The following diseases specified under rule 11DD qualify for tax deduction u/s 80DDB. However, the prescription in respect of the diseases or ailments is required from the specialists as mentioned below:

  • Neurological diseases where the disability level has been certified (prescription issued by Neurologist having ‘Doctorate of Medicine’ degree or equivalent qualification) to be of 40% and above:
    1. Dementia
    2. Dystonia Musculorum Deformans
    3. Motor Neuron Disease
    4. Ataxia
    5. Chorea
    6. Hemiballismus
    7. Aphasia
    8. Parkinsons Disease
  • Malignant Cancers (prescription issued by Oncologist having Doctorate of Medicine degree or equivalent qualification)
  • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) (prescription issued by any specialist having a post-graduate degree in General or Internal Medicine or equivalent qualification)
  • Chronic renal failure (prescription issued by a Nephrologist / Urologist having Doctorate of Medicine degree or equivalent qualification)
  • Hematological disorders (prescription issued by a Hematologist having Doctorate of Medicine degree or equivalent qualification):
    1. Hemophilia
    2. Thalassaemia

In case, the person is being treated was treated in a government hospital, the prescription may be issued by any specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognised by the Medical Council of India.

The prescription should contain the name and age of the patient, name of the disease or ailment along with the name, address, registration number and the qualification of the specialist issuing the prescription.

If the patient is receiving treatment in a government hospital, such prescription shall also contain the name and address of the government hospital.

Deduction limit


The deduction limit depends upon the actual expense incurred and age of the person for whose treatment the money was spent.

  • In normal cases, the assessee (individual or HUF) is eligible for tax deduction of Rs. 40,000 or the actual amount spent, whichever is less.
  • In case the person subject to medical treatment of specified disease is a senior citizen, the assessee will be eligible for tax deduction of Rs. 60,000 or the actual amount spent, whichever is less.
  • In case the person subject to medical treatment of specified disease is a super senior citizen, the assessee will be eligible for tax deduction of Rs. 80,000 or the actual amount spent, whichever is less.

Age of person who underwent treatment Deduction allowed to assessee
Up to 60 years Least of actual amount spent or Rs. 40,000
Senior citizen (60-80 years) Least of actual amount spent or Rs. 60,000
Super senior citizen (above 80 years) Least of actual amount spent or Rs. 80,000

Amount of deduction allowable under this section as per the limits mentioned above will be reduced by the amount received (if any), under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person specified.

© H&R Block (India) Private Limited. All Rights Reserved.