Save income tax via medical expenditures under Section 80DDB

Section 80DDB

Section 80DDB of the Income Tax Act allows you to save tax by claiming medical expenditures incurred as a deduction from income before levy of tax.

You can claim this deduction if these two conditions are satisfied then one can claim a maximum deduction of Rs 50,000 in a financial year for the expenditure incurred:

a) The medical expenditure must be incurred either on self, spouse or dependent children or/and parents. Also, the person for whom the medical expenditure is incurred must be 60 years and above. Therefore, in most cases people.

b) The person on whom medical expenditure has been incurred should not be covered under any health insurance policy.

To claim this deduction, all the medical expenditure must be paid in any other mode other than cash. This means that all payments for medical expenses must be done via banking channels such as credit card, debit card, and Net-baking or digital channels such as mobile wallets, UPI and so on.

medical expenditure must be done either on self/family members (as defined under law) and/or parents who are aged 60 years and above for the treatment of diseases or ailments

You can claim Deduction under section 80DDB in respect of medical treatment following conditions must be satisfied:

1. Taxpayer must be resident in India

2. Taxpayer is an Individual or HUF

3. Amount actually paid for the medical treatment of such disease or ailment as specified in Rule 11DD.

4. Amount must be paid for medical treatment of himself or a dependant (i.e Spouse, Children, parents, brothers and sisters of the individual or any of them)

5. Taxpayer have obtained the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed.

For non senior citizen.- Maximum Deduction shall be allowed of amount actually paid or Rs. 40000 whichever is less.

For senior citizen– Maximum Deduction shall be allowed of amount actually paid or Rs 100000 whichever is less

However, if any amount is reimbursed by the Employer then it should be less from deductible amount.

If any of the above condition is not satisfied then you cannot claim deduction u/s 80DDB in respect of medicines, test conducted etc.

However, if your wife is a senior citizen and expenses incurred by you in any mode other than cash then it can be claimed as deduction u/s 80D upto Rs. 50000.

Rule – 11DD, Specified diseases and ailments for the purpose of deduction under section 80DDB

 (1) 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,—

(a) Dementia ;

(b) Dystonia Musculorum Deformans ;

(c) Motor Neuron Disease ;

(d) Ataxia ;

(e) Chorea ;

(f) Hemiballismus ;

(g) Aphasia ;

(h) Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

[(2) The prescription in respect of the diseases or ailments specified in sub-rule (1) shall be issued by the following specialists:—

(a) for diseases or ailments mentioned in clause (i) of sub-rule (1) – a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India;

(b) for diseases or ailments mentioned in clause (ii) of sub-rule (1) – an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India;

(c) for diseases or ailments mentioned in clause (iii) of sub-rule (1) – 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;

(d) for diseases or ailments mentioned in clause (iv) of sub-rule (1) – a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nehprology 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;

(e) for diseases or ailments mentioned in clause (v) of sub-rule (1) – 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 :

Provided that where in respect of any diseases or ailments specified in sub-rule (1), the patient is receiving the treatment 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.]

[(3) The prescription referred to in sub-rule (2) shall 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:

Provided that where the patient is receiving the treatment in a Government hospital, such prescription shall also contain the name and address of the Government hospital.]