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.
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.
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:
- Dystonia Musculorum Deformans
- Motor Neuron Disease
- 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):
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
If the patient is receiving treatment in a government hospital, such prescription shall also contain the name and address of the government hospital.
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.