Section 80DDB: Claim Deductions on Medical Expenses

Deductions Under Section 80DDB

Section 80DDB of the Income Tax Act, 1961 allows provisions for tax deductions against the medical treatment of a dependent who suffers from specified illnesses.

Diseases Covered as per Section 80DDB

As per Section 80DDB of the Income Tax Act in India, deductions are allowed for expenses incurred on the medical treatment of specified diseases. The list of specified diseases is outlined in Rule 11DD of the Income Tax Rules. Some of the diseases listed are as follows -

Category	Disease
Neurological Diseases	Dementia Motor Neuron Disease Dystonia Musculorum Deformans Ataxia Chorea Hemiballismus Aphasia
Malignant Cancers	Breast Cancer Ovarian Cancer Prostate Cancer Colorectal Cancer Lung Cancer Oral Cancer Leukaemia Lymphoma Sarcoma Multiple Myeloma
Chronic Renal Failure	End-stage renal failure requiring regular dialysis
AIDS	Full-blown Acquired Immuno-Deficiency Syndrome (AIDS)
Haematological disorders	Haemophilia Thalassemia

Specialists Who Can Provide Certificate Under Section 80DDB

Below listed are some of the specialist who can issue the prescriptions for the respective diseases:

Diseases	Prescription to be issued by
Haematological Disorders	Specialist: DM in Hematology or Equally recognised degree
Full Blown Acquired Immunodeficiency Syndrome (AIDS)	Specialist: PG in General Internal Medicine or Equivalent degree
Malignant Cancers	Oncologist: DM or Equally recognised degree
Chronic Renal Failure	Nephrologist: Doctorate of Medicine (D.M.) or Equally recognised degree Urologist: MCh in Urology or Equivalent degree
Neurological Diseases	Neurologist: Doctorate of Medicine (D.M.) in Neurology Equivalent degree.

*Please note that this is not an exhaustive list, and it's essential to refer to Rule 11DD for the complete list of specified diseases, specialists and prescriptions.

Eligibility Criteria

Individuals:

Resident individuals and Hindu Undivided Families (HUF) are eligible to claim deductions under this section

Patient:

Deductions can be claimed for the medical treatment of the taxpayer, spouse, children, parents, brothers, or sisters of the taxpayer

Specified Diseases:

Deductions are allowed for the treatment of specified diseases or ailments. The list of specified diseases is provided in Rule 11DD of the Income Tax Rules

Documents Required

Prescription: A prescription from a specialist doctor is required, specifying the ailment and the name of the patient.

Certificate: A certificate in Form 10-I is required, which needs to be signed by a specialist doctor having a degree in General or Internal Medicine or any equivalent degree

Deductions Under Section 80DDB of the Income Tax Act

For individuals below 60 years: Up to ₹40,000 or the actual amount paid, whichever is less.
For individuals above 60 years but below 80 years: Up to ₹1,00,000 or the actual amount paid, whichever is less.
For individuals aged 80 years and above: Up to ₹1,00,000 or the actual amount paid, whichever is less.

Patients who receive treatment from private hospitals do not require to receive a certificate issued by a government hospital. They can receive one from a qualified private doctor.

Patients who get treated at a government hospital must get a certificate from a specialist/doctor who is employed full-time in the hospital where they get admitted. The doctor must have completed post-graduation in General Medicine or any equivalent degree recognised by the Medical Council of India.

How to Fill Section 80DDB Form?

While there isn't a specific "Section 80DDB Form", individuals looking to claim deductions under Section 80DDB need to follow certain procedures and provide specific documentation. Here's a general guide on how to go about it:

Step 1: Obtain Prescription and Certificate in Form 10-I

Step 2: Complete the Form 10-I with the necessary details such as:

Patient's name
Address
Age
Name and address of the medical practitioner issuing the certificate
Name and address of the hospital, if applicable
Details of the disease or ailment

Step 3: Attach the prescription from the specialist doctor along with the filled Form 10-I
Step 4: Attach the certificate and prescription along with the other relevant documents when filing your income tax return

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Adjustment of Deductible Amount u/s 80DDB

If the actual amount paid for medical treatment is less than the maximum limit allowed by the government, you can claim a deduction up to the actual amount paid.

Here's how the adjustment works:

Step 1: Calculate Actual Amount Paid

Determine the total amount you have actually paid for the specified medical treatment. This includes expenses like hospital bills, medication costs, diagnostic tests, etc.

Step 2: Check Applicable Limit

Determine the maximum deduction limit based on the age of the patient. The allowable deduction is the lesser of the actual amount paid and the specified limit.

For example, if the actual amount paid is Rs. 30,000 and the applicable limit is Rs. 40,000, you can claim a deduction of Rs. 30,000.

If the actual amount paid is Rs. 50,000 and the applicable limit is Rs. 40,000, you can only claim a deduction of Rs. 40,000, as that is the maximum allowed.

Step 3: Claim in Income Tax Return

Report the eligible deduction in the relevant section of your income tax return. Attach the necessary documents, including the certificate in Form 10-I and the prescription from the specialist doctor, to support your claim.

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Exclusions Under Section 80DDB of the Income Tax Act

The deduction under Section 80DDB is not available for diseases not mentioned in Rule 11DD of the Income Tax Rules.
The deduction limit varies based on the age of the patient. Different limits apply for individuals below 60 years, those between 60 and 80 years, and those above 80 years.
To claim the deduction, a certificate in Form 10-I is required from a specialist doctor. The doctor must have a degree in General or Internal Medicine or an equivalent qualification.
The certificate from the specialist doctor must be in the prescribed format (Form 10-I). Deviation from the specified format may affect the admissibility of the deduction.
Not all medical expenses may be eligible for deduction under Section 80DDB. Routine medical expenses or expenses not directly related to the specified diseases may not qualify.

Conclusion

In conclusion, Section 80DDB of the Income Tax Act plays a crucial role in providing financial relief to taxpayers in India who incur substantial medical expenses for the treatment of specified diseases. The section allows for deductions based on the actual amount spent on medical treatment, subject to specified limits based on the age of the patient. To avail of this benefit, taxpayers must adhere to the prescribed documentation requirements, including obtaining a certificate in Form 10-I from a specialist doctor.

FAQs

What are the documents required to claim deductions under Section 80DDB?

The following documents may be required as proof to claim deductions under Section 80DDB -

Medical prescription issued by a specialist doctor for the specific disorder
Bills and receipts as proof of medical expense payments.
Patient identity proof (PAN card or Aadhaar card)
Form 10-I: Assessee's declaration in a specified format, serving as a claim for deduction

Can deduction under Section 80D and Section 80DDB be claimed together?

Yes, you can avail income tax benefits under Sections 80D and 80DDB together. Section 80D facilitates deductions for health insurance premiums. On the other hand, Section 80DDB provides tax benefits for expenses related to the treatment of specified diseases. Given the distinct nature of these provisions, you claim deductions for both simultaneously.

Are heart diseases covered under 80DDB?

Heart diseases, per se, are not explicitly listed under Section 80DDB of the Income Tax Act. Section 80DDB primarily covers expenses related to specified diseases, including certain ailments and conditions. These typically involve diseases like neurological diseases, malignant cancers, chronic renal failure, AIDS, haemophilia, and thalassemia.

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