As per section 80DDB of the Act, an assessee, resident in India is allowed a deduction of a sum not exceeding forty thousand rupees, being the amount actually paid, for the medical treatment of certain chronic and protracted diseases such as Cancer, full blown AIDS, Thalassaemia, Haemophilia etc. This deduction is allowed up to sixty thousand rupees where the expenditure is in respect of a senior citizen i.e. a person who is of the age of sixty years or more at any time during the relevant previous year. Higher limit of deduction of upto eighty thousand rupees, for the expenditure incurred in respect of the medical treatment of a “very senior citizen”.
The above deduction is available to an individual for medical expenditure incurred on himself or a dependant relative. It is also available to a Hindu undivided family (HUF) for such expenditure incurred on its members. Dependant in case of an individual means the spouse, children, parents, brother or sister of an individual and in case of an HUF means a member of the HUF ,wholly or mainly dependant on such individual or HUF for his support and maintenance.
As per section 80DDB provisions of this section, a certificate in the prescribed form, from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist working in government hospital or Privately.
Summary of Deduction u/s 80DDB following condition should be satisfied.
- Taxpayer should be resident in India in the previous year.
- Deduction is available to Individual or HUF only.
- Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.
- Expenditure should be incurred for medical treatment of
- assessee himself
- wholly/mainly dependent Husband/wife(spouse)
- wholly /mainly dependent children
- wholly/mainly dependent parents
- wholly/mainly dependent Brother
- wholly/mainly dependent Sisters
- in case of Huf ,wholly/mainly dependent member of the HUF
- Assessee shall have to submit certificate in form no 10-I from prescribed specialist working in Government hospital or private hospital
- This deduction can not be allowed by DDO(employer) while calculating the TDS amount.So assessee have to apply for claim this deduction while filing his return in Income tax tax department
Amount of Deduction:
- Deduction is available for Rs. 40000 or amount actually paid ,whichever is less.
- 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 whichever is less. Update : Age Limit for Senior Citizen has been reduced to 60 Year wef financial year 2012-13 through Finance Bill 2012
- For very senior citizen the amount is Rs 80000/-
- deduction Amount as arrived in above (1) or (2) or (3) 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 ;
Form 10I can be downloaded in word format from here
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Complete Section reproduced hereunder.
Complete Section reproduced hereunder.
Deduction in respect of medical treatment, etc.
80DDB. 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 rules80 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 obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed :
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 dependant 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 :
Provided also that where the amount actually paid is in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is a very senior citizen, the provisions of this section shall have effect as if for the words "forty thousand rupees", the words "eighty thousand rupees" had been substituted.
Explanation.—For the purposes of this section,—
(i) "dependant" 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,
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;
(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 years or more at any time during the relevant previous year;
(v) "very senior citizen" means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.