The deduction is specified under section 80DDB related to the treatment and medication of certain diseases for taxpayers who are either resident individuals or HUFs and if any differently-abled person is solely dependent on the taxpayer. NRIs are denied claiming such deductions u/s 80DD.
The Amount Assigned for Deduction U/S 80DDB
Such tax deductions can be claimed based on two factors – the amount of expenditure and the age of the reliant. The amount is capped at:
Deductions under section 80DDB rely upon the age of the reliant and the amount of expenditure on his/her treatment.
The Tax deduction depends on:
- The amount of deduction is similar to the amount of treatment until the expenditure reaches Rs. 40,000 (if the reliant is not a senior citizen).
- The limit is Rs. 1 Lakh in the case of a senior citizen.
|Patient’s Age||Maximum Limit|
|Persons less than the age of 60 years||Rs 40,000|
|For persons above the age of 60 years (senior citizens).||Rs 1,00,000|
Deduction under section 890DDB is available on certain diseases only. Mentioned below is the list of those diseases:
|List of Diseases||Prescription is needed by a specialist in below fields:|
|Neurological Diseases (with disability level certified 40% and above) DementiaDystonia musculorum deformansMotor neuron diseaseAtaxiaChoreaHemiballismusAphasiaParkinsons disease.||Neurologists having a Doctorate of Medicine (DM) degree or equally recognized degree.|
|Malignant cancers||Oncologist Doctorate of Medicine (DM) degree or equally recognized degree|
|Full Blown Acquired Immunodeficiency Syndrome (AIDS)||A Specialist – a Post Graduate in general or internal medicine any other equivalent degree|
|Chronic Renal Failure||Nephrologist (Doctorate of Medicine (DM) degree or any other equivalent degree) Or Urologist (having MCh in Urology or equivalent degree)|
|Hematological disorders HaemophiliaThalassemia||A Specialist (having DM in Hematology or any other equivalent degree)|
Documents/ set of proofs needed for claiming the deductions under section 80DDB
The said deduction can be claimed at the time of filing the ITR. The taxpayer is required to furnish prescription or any other relevant proof of treatment being undertaken. A prescription from the doctor stating that the person is suffering from any of the above-mentioned diseases.
The prescription given by the doctor must possess below-mentioned details:
- Patient’s Name
- Patient’s Age
- Name of the disease or Abnormality
- Name, specialty and registration number of the doctor prescribing the medical certificate or prescription.
- If treatment is going on in a government hospital then the name of that particular hospital is also required to be mentioned.
- The form needs a signature from the head doctor in case the treatment is going on in a hospital.
Do not forget
- The total amount of deduction availed at the time of filing the Income-tax return Via Gen IT Software is based on the age of the person availing the medical treatment and not the assessee.
- Deductions are based on the total amount that is spent by the taxpayer in the treatment during that particular financial year.
- In case if the dependent has already availed complete insurance from the insurance company or has availed a certain amount via reimbursement from their employer then the amount is supposed to be subtracted from the actual deduction allowed.