Deduction under section 80DDB of the Income Tax Act is available towards the amount actually paid for the medical treatment of the specified disease. The current article explains all the provisions attached with the said deduction along with the frequently asked questions.
Eligibility of deduction under section 80DDB –
For better understanding, the eligibility of deduction under section 80DDB is tabulated hereunder –
|Sr. No.||Type of assessee eligible for deduction under section 80DDB||Medical treatment of the following persons is allowed as a deduction under section 80DDB|
|1||An individual||Self or a dependant
(Dependant here means the spouse, children, parents, brothers and sisters of the individual or any of them)
|2||A Hindu Undivided Family||Any member of Hindu Undivided Family|
Amount of deduction –
Lower of the following amount is allowed as a deduction under section 80DDB –
It is important to mention here that deduction, in case the amount actually paid is in respect of either the assessee or his dependant or any member of Hindu Undivided Family, who is a senior citizen, shall be lower of –
Other important points –
1. Deduction under section 80DDB is available only to an assessee who is resident in India. In other words, a deduction is not available to a non-resident person.
2. For claiming deduction under section 80DDB, it is mandatory to obtain a prescription of the medical treatment from an oncologist or a neurologist or a haematologist or a urologist or an immunologist or such other specialist.
The prescription should contain following details –
3. The deduction shall not be allowed under section 80DDB for the amount which has either been received under an insurance from an insurer or reimbursed by an employee.
4. As per rule 11DD of the Income Tax Rules, medical treatment of only the following specified disease or ailments is allowed as adeduction under section 80DDB –
a. Hematological disorders –
i. Thalassaemia; and
b. Full Blown Acquired Immuno Deficiency Syndrome (i.e. AIDS).
c. Malignant Cancers.
d. Neurological Disease (only where the disability level has been certified to be 40% or above) –
i. Motor Neuron Disease.
v. Parkinsons Disease.
vi. Dystonia Musculorum Deformans.
e. Chronic Renal failure.
Frequently Asked Questions (FAQ) –
Q 1. Which disease are covered under 80ddb?
Ans: List of specified disease for which deduction is available under section 80DDB is provided under rule 11DD of the Income Tax Rules. As per the said rule, disease like AIDS, thalassaemia, chronic renal failure, various neurological disease, malignant cancers etc. are covered as a specified disease.
Q 2. How do I claim deduction under section 80ddb?
Ans: The amount paid towards specified disease for self or dependant or member of HUF is allowed as a deduction under section 80ddb. However, for claiming a deduction, prescription of the specific specialist is mandatory.
Q 3. Who can claim 80ddb?
Ans: Deduction under section 80ddb can be claimed only by the resident Individual or a Hindu Undivided Family for the amount paid towards specified disease.
Q 4. Is cancer covered under section 80ddb?
Ans: Only one type of cancer, namely, ‘malignant cancer’ is covered under section 80ddb.