Deduction u/s 80DDB in respect of medical treatment

I am a central Govt. retired pensioner aged 66 yrs.My wife aged + 60 yrs is suffering from Brain Tumor(Cancer) and undergoing chemotherapy treatment in Private cancer hospital . No medical reimbursement facility available to me.

Please clarify/tell me whether I will be eligible to claim deduction of Rs.60,000/- under section 80 DDB on account of expenditure actually incurred on the medical treatment of such disease or ailment as may be specified in the rules 11 DD.Due to receipt of revised pension arrears I am coming in income tax deduction zone  as pension + arrears will be around Rs.3,39,000/-.
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To claim deduction u/s 80DDB following condition should be satisfied.

1. Taxpayer should be resident in India in the previous year.
2. Deduction is available to Individual or HUF only.
3. Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.
4. Expenditure should be incurred for medical treatment of
1. assessee himself
2. wholly/mainly dependent Husband/wife(spouse)
3. wholly /mainly dependent children
4. wholly/mainly dependent parents
5. wholly/mainly dependent Brother
6. wholly/mainly dependent Sisters
7. in case of Huf ,wholly/mainly dependent member of the HUF
5. Assesee shall have to submit certificate in form no 10-I from prescribed specialist working in Government hospital
6. 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;
   

Amount of Deduction:

1. Deduction is available for Rs. 40000 or amount actually paid ,which ever is less.
2. If expenditure has been done in respect of  dependent who is at least of 65 year of age in any time during the previous year then deduction shall be Rs. 60000 or amount paid which ever is less.
3. deduction Amount as arrived in above (1) or (2) will be reduced by amount reimbursed by employer or by insurer.

Specified diseases and ailments for the purpose of deduction under section 80DDB.

(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.

On the Basic of facts given by you ,you are eligible to for deduction of Rs 40000  only.Enhanced Limit of 60000 is available if dependent /patient is senior citizen (attain age 65 in previous year ) not assesse who is is claiming the deduction.in your case your age is 66 ,However your wife's age is just 60 ,so you are eligible for only 40000 deduction or expenses incurred which ever is less.

Moreover the above said amount will be reduced by the amount reimbursed by employer/Insurance company .In your case this is nil.so you will get 40000 or expenses incurred ,which ever is less as deduction u/s 80DDB of the Income Tax Act.

Form 10I can be downloaded in word format from here

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Labels: 80C, 80DDB, 80GG, medical u/s 80D, section 80E, valuation of perquisities

Monday 30 January 2012