It is often said by our parents that “Bura waqt kisi ko bta k nahi aata” and “Bhagwan kum paisa de par bimari mat de”. But “na chahte hue bhi bimari aa jati h”. We all have someone or other in relation who suffers from serious disease like Cancer, AIDS, Brain diseases and now COVID-19. All we can do is to keep patience and take care of them. But we cannot ignore the fact that very high amount of money is also spent by family for treatment of these diseases on their dependents. Therefore Govt. has given tax benefit to taxpayer if he incurs expenses on these diseases.
|1.||Neurological Diseases- Diasbility above 40% like Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinsons Disease
|If Govt. Hospital- Any specialist If private Hospital-Neurologist|
|2.||Malignant Cancers||If Govt. Hospital- Any specialist If private Hospital-Oncologist|
|3.||AIDS||If Govt. Hospital- Any specialist If private Hospital-General or Internal Medicine|
|4.||Chronic Renal failure||If Govt. Hospital- Any specialist If private Hospital-Nephrologist|
|5.||Hematological disorders like Hemophilia, Thalassaemia||If Govt. Hospital- Any specialist If private Hospital-Hematology|
It is not possible to attach any prescription with new income-tax forms. The assessee should himself retain the prescription and furnish when required by Assessing Officer.
For prescription no format or form has been issued. The prescription shall contain required information like name, age of patient, name of disease, name and address of Govt. hospital, registration number and qualification of specialist, etc.
This deduction is available apart from 80C deduction of Rs.1,50,000/-. So taxable income can be reduced by 40,000/- or 1,00,000/- .If taxpayer is in 30% slab rate than income tax of Rs.12,000/- may be saved. The figure of tax savings depends on case to case basis. Govt. has taken many initiatives but the same is not known to layman. So next time, if you file your returns do take care of this deduction as it will reduce your tax liability legally. It is always advised to take help of expert while filing returns as the policies of Govt. are changing very frequently.
The above comments do not constitute professional advice. The Author can be reached at firstname.lastname@example.org or visit website www.financialtreecompany.com . My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company) where we have taken an initiative that allows person to Pay from Heart. We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.