What is Section 80DDB?

With retail healthcare inflation rising by 7.14% in 2018-2019, the working-class Indian citizen is likely bearing a significant amount of costs, when it comes to medical expenses. The Indian Government has, therefore, put forth Section 80DDB to relieve the financial burden on taxpayers incurring such expenses.

For medical treatment of specific diseases or ailments, tax deductions can be claimed by taxpayers under Section 80DDB. Chapter VI A, Section 80DDB of the Income Tax Act states that any individual or a member of a Hindu Undivided Family (HUF) is allowed tax deductions if medical charges are incurred for the treatment of a specific disease or ailment. These deductions are subjected to terms and conditions as specified under Section 80DDB of the Income Tax Act.

Deduction applicable under Section 80DDB - Terms & Condition

There are specific terms and conditions for tax deduction under Section 80DDB.

They are:

  • Deductions are to be claimed on expenses incurred on the clinical treatment of specific diseases and ailments

  • Deductions can be claimed for self or dependents (parents, spouse, brothers, or sisters)

  • For individuals less than 60 years of age, the deduction threshold is ₹40,000

  • For senior citizens aged 60-80, the deduction threshold is ₹60,000

  • For super-senior citizens aged more than 80 years, the deduction threshold is ₹1 lakh

  • Certificate of disease from a certified practitioner must be procured at the time of filing of tax deductions

Eligibility for Claiming Deductions under 80DDB

According to Section 80DDB of the Income Tax Act, deductions can be claimed by:

  • Taxpayers who are Indian residents

  • Members of HUFs (Hindu Undivided Family)

Diseases / Medical Ailments specified according to Section 80DDB

The ailments/ diseases considered by the income tax department for claiming tax deductions under 80DDB are:

1. Neurological disorders with 40% or more disability

  • Parkinson's Disease

  • Dementia

  • Motor Neuron Disease

  • Chorea

  • Aphasia

  • Hemiballismus

  • Dystonia musculorum Deformans

2. Malignant cancer

3. Full-blown AIDS

4. Hematological disorders like hemophilia and thalassemia

5. Chronic renal failure

Required Documents to Claim for tax deduction according to Section 80DDB

To claim the 80DDB deductions, it is important that one provides an authentic medical certificate.

This medical certificate must have:

  • The patient’s name

  • The patient’s age

  • The name of the patient’s ailment/disease

  • The qualification, name, address and registration number of the specialist providing treatment

If the patient is receiving treatment in a government hospital, it is necessary that the respective hospital’s name and address are printed on the certificate.

How to Get a Certificate for Claiming Deduction under Section 80DDB

To claim income tax deduction under section 80DDB, it is important that you submit your medical certificate from a certified authority. For each specific disease, there is a prescribed medical authority from whom the taxpayer will need to procure a medical certificate:

Sr. no

Disease

Certified authority

1

Neurological disorders with 40% or more disability

  • Parkinson's Disease

  • Dementia

  • Motor Neuron Disease

  • Chorea

  • Aphasia

  • Hemiballismus

  • Dystonia musculorum Deformans

M.D. in Neurology/ Equivalent degree recognized by the MCI ( Medical Council, India)

2

Cancer (Malignant)

M.D. in Oncology/ Equivalent degree recognized by the MCI (Medical Council, India)

3

Full-blown AIDS

Specialist with post-grad in Medicine or internal medicine / Equivalent degree recognized by the MCI ( Medical Council, India)

4

Renal Failure (Chronic)

M.D. in Nephrology/ M.Ch. Urologist/ Equivalent degree recognized by the MCI (Medical Council, India)

5

Hematological disorders like hemophilia and Thalassemia

M.D. in Hematology/ Equivalent degree recognized by the MCI (Medical Council, India)

Conclusion

Section 80DDB can provide a significant amount of tax relief to those who bear the brunt of medical expenses on certain diseases. It is important that one understands the terms and conditions of availing of Section 80DDB deductions, furnishes the necessary documentation to supplement their returns and files their returns well ahead of the deadline.

FAQs

  • ✔️What details must be included in the certificate?

    The patient’s name, age, name of ailment, doctor’s name, qualification, registration number, and address of the doctor/specialist should feature on the medical certificate.
  • ✔️What exactly is stated in section 80DDB?

    Under Section 80DDB, an individual can claim tax deductions for medical expenses incurred for treatment of specific diseases for self, their parents, spouse or children.
  • ✔️What is the difference between section 80D and section 80DDB?

    Section 80DDB covers deductions for medical expenses incurred on a specific, predefined set of diseases. On the other hand, Section 80D covers deductions on the premiums paid for a health insurance policy bought for oneself, one’s parents, spouse or children. One can avail of up to Rs. 25,000 in deductions under Section 80D. If one claims deductions for insurance premiums paid on behalf of their parents, they can avail of additional tax benefits up to Rs. 25, 000. In order to be eligible for tax benefits under Section 80D, you can consider purchasing the Bajaj Allianz Health Insurance plan on Finserv MARKETS. This plan not only gives you the benefits of tax deductions, but also gives you access to best-in-class medical insurance plans to keep you on top of the health game. You get individual and family health insurance plans to safeguard you and your loved ones. In addition to covering post and pre hospitalization costs, organ donation expenses, and even alternative medical treatments, you get the benefit of swift claims settlements.

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive and hence I wan't to protect it with the best available option. What amazed me about Bajaj Finserv Markets was full transparency, quick quotes and the attractive discount on the premium while choosing annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Finserv – Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Paris just at the click of a mouse!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is not a 60 minute meeting with an insurance sales person but with a close study of my coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premiums, what else could I have asked for as a newbie!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment, No cost EMI on Bajaj Finserv Markets EMI store and the smile on my dad's face just made my day!

Get home loan sanctioned online in 72 hours! Let's start!