The Income Tax Act of 1961, Section 80DDB, has provisions for tax deductions against the medical care of a dependent who has a sickness covered by it. An individual who resides in India and HUFs (Hindu Undivided Families) are eligible to claim the 80DDB deduction on the amount spent on dependents’ medical care.
According to Section 80DDB, a taxpayer’s spouse, children, parents, and siblings are considered to be dependants. Additionally, the amount of the payout received from the insurance provider if the dependent has medical insurance and receives a payout is subtracted from the income tax deduction.
Section 80DDB of Income Tax
The entirety of Chapter VI A. It includes all write-offs related to different investments or payments made for costs paid by the taxpayer. The same is described in more detail below:
- Section 80C: It allows for deductions for contributions made by the assessee to a variety of investments, such as life insurance plans, PPF, payments made toward the principal balance of a mortgage, tuition payments made to a school, etc. Section 80C has a cap on the amount of deductions that can be made of Rs. 1, 50,000.
- Section 80D: It allows for a deduction for premium payments made for health insurance coverage. The maximum premium for the assessee’s or his family’s health insurance policy is Rs. 25,000, while the maximum premium for the assessee or his parents, who are senior citizens, is Rs. 50,000.
- Section 80DD: Any expenses incurred by an individual or HUF for the maintenance or medical care of a person with a disability may be deducted up to Rs. 75,000 in accordance with actual expenses.
As a result, each section discusses various expenses or investments that may be deducted, the requirements that must be satisfied in order to do so, and the maximum amount that may be deducted.
Who is eligible to make a claim under Section 80DDB?
Only individuals and HUFs who were residents of India during the applicable prior fiscal year are eligible to claim it. Corporates or any other entity may not claim a deduction under this clause. In other words, non-resident Indians are not covered by this clause.
Furthermore, it is crucial that only the individual who paid the expenses can claim a deduction. So, in the context of Section 80DDB, the individual and HUF who incurred the medical expense may claim the deduction.
Deductions under Section 80DDB Limit
The list of income tax deductions and their maximum amounts under Section 80DDB of the Income Tax Act is as follows:
- The maximum tax deduction for the cost of treating a dependent for one of the aforementioned disorders is 40,000.
- For the treatment of a dependent who is a senior (age 60+) or super senior (age 80+) for the diseases mentioned above, a tax deduction of up to 1,00,000 may be claimed.
- Patients receiving care at private hospitals can obtain a certificate from a licenced private physician instead of from a government hospital or physician.
- Patients receiving care at a government hospital are required to obtain a certificate from a specialist employed full-time by the facility. A postgraduate degree in general medicine or a degree comparable recognised by the Medical Council of India is required of the expert.
Diseases covered under section 80DDB
Check here the list of Diseases covered under section 80DDB.
|Disease||Requirement for Claiming Deduction|
|Neurological diseases where the disability level has been certified to be of 40% and above:
b. Dystonia Musculorum Deformans;
c. Motor Neuron Disease;
h. Parkinsons Disease
|Prescription from a Neurologist having a DM degree in Neurology or any equivalent degree.|
|Malignant Cancer||Prescription from an Oncologist having a DM in Oncology or any equivalent degree.|
|Full-blown AIDS||Prescription from a Specialist having post-graduate degree in General or Internal Medicine.|
|Chronic Renal Failure||Prescription from a Nephrologist having a DM in Nephrology or a Urologist having a Master of Chirurgiae degree in Urology|
|Hemophilia or Thalassaemia||Prescription from a Specialist having a DM in hematology.|
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What specific information must be included in the prescription?
The prescription should only be written by licenced medical professionals with the necessary specialisation. Prior to the Assessment Year 2016–17, a prescription had to be submitted in Form 10-I, but this need has been eliminated. Now, the prescription should include the following details:
- Patient’s Full Name
- Age of the Patient
- Illness or Condition by the specialised doctor issuing the prescription’s name, address, and registration number.
- The prescription should include the name and address of the government hospital if the treatment is being provided there.
- The doctor or administrator of the government hospital must sign the form.
- The assessee must provide the prescription they acquired to the income tax department together with their income tax return.
Documents needed to submit a Section DDB claim for medical expenses incurred for a variety of disorders
The assessee must present evidence of both the necessity for treatment and evidence that treatment has already occurred in order to be eligible for a deduction under Section 80DDB. For these types of therapies, a doctor’s prescription is required.
Previously, only government hospital doctors could write this prescription. However, starting with the Assessment Year 2016–2017, a prescription can now be accepted as genuine even if it was received from a private hospital. Rule 11DD is been revised, and the following is how prescription is now obtained:
- A doctor of medicine in neurology or a degree of an equal standing from a neurologist is required in order to write a prescription for neurological illnesses.
- A prescription from an oncologist with a Doctor of Medicine in oncology or any degree comparable is necessary in the case of malignant cancer.
- In the event of AIDS, a prescription must be written by a specialist with a postgraduate degree in internal or general medicine or a degree of a similar calibre.
- A prescription from a nephrologist with a Doctor of Medicine (D.M.) degree in nephrology, a urologist with a Master of Surgical (M.Ch.) degree in urology, or a doctor with an equivalent degree is necessary in cases of chronic renal failure.
- A specialist with a Doctor of Medicine degree in Hematology or a degree of a similar calibre is required in the case of the last illness, haematological disorders.
How Do I Fill Out the 80DDB Form?
Fill out the 80DDB Form by following the detailed instructions:
- Name, address, and father’s name should be included for the patient.
- Include the person’s name, address, and relationship to the patient they are reliant upon.
- Mention the disease’s name. Also, be sure to mention how severe the handicap is (for instance, 40% or more).
- Include the doctor’s name, address, registration information, and credentials while completing the medical certificate. Mention the hospital’s name and location.
- Please complete the “verification” section. Furthermore, you and the administrator of the government hospital must both properly sign the paper. He or she needs to be a postgraduate in internal or general medicine.
Section 80DDB of Income Tax Act- FAQs
- What am I allowed to claim under 80DDB?
Answer-40,000 or, if less, the amount actually paid. For older citizens, the lesser of Rs. 60,000 or the amount actually paid. The maximum deduction available to extremely senior citizens is Rs 80,000.
- Do we have to provide evidence for 80DDB?
Answer-The assessee must produce both an evidence of the need for treatment and a proof that the treatment has actually been received in order to be eligible for a deduction under section 80DDB.
- Can medical expenses be written off under 80DDB?
Answer-Yes, “Malignant malignancies” are specifically mentioned in Section 80DDB of the Income Tax Act, and expenses made for medical treatment of the self or a dependent for such a condition may qualify for a tax credit.
- Who is eligible to claim an 80DDB deduction?
Answer-Seniors between the ages of 60 and 80 can deduct either the actual cost of the medical care they received or Rs. 1 lakh, whichever is less. Seniors who are over 80 years old may deduct either the real cost of their medical care or Rs. 1 lakh, whichever is less.