Deduction u/s section 80DDB

Deduction in respect of medical treatment section 80DDB

This deduction is in respect of medical treatment of a specified disease or ailment as prescribed by the government. 80DDB deductions are available for expenditure incurred in respect of assessee himself or his dependent spouse, children, parents, brothers/ sisters.

Assesee shall have to submit certificate in form no 10-I from prescribed specialist working in a government hospital.

The eligibility for deduction in this section is the actual expenses subject to a maximum of 40,000/-. The limit is 60,000 in the case of senior citizens. If you are getting any reimbursement for this from your employer/insurance company, you will get only the balance.

This deduction cannot be allowed by your employer while calculating the TDS amount. So you have to apply for claiming this deduction while filing the IT return.

The specified disease eligible under this section are

1. Neurological diseases where the disability levels are above 40%.
2. Malignant Cancers
3. AIDS
4. Chronic  renal failure
5. Hematological disorders

An understanding of these provisions will help us in getting more tax benefits. If you know anybody, who can be benefited under these sections, please share with them.

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1.   Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board

(a)  for himself or a dependant, in case the assessee is an individual; or

(b)  for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid :

Provided that no such deduction shall be allowed unless the assessee furnishes with the return of income, a certificate in such form, as may be prescribed, from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed, working in a Government hospital :

Provided further that the deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred to in clause (a) or clause (b) :

Provided also that where the amount actually paid is in respect of the assessee or his dependent or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words forty thousand rupees, the words sixty thousand rupees had been substituted.

1. For the purposes of this section,

(i)  dependent means

(a)  in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

(b)  in the case of a Hindu undivided family, a member of the Hindu undivided family,

dependent wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

(ii)  Government hospital includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;

(iii)  insurer shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(iv)  senior citizen means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.]