Under Section 80DDB of the Income Tax Act, 1961, taxpayers can claim deduction for medical treatment of certain specified ailments for self or dependent. This type of deduction is covered in Chapter VIA of the Income Tax Act, 1961. Individuals and HUFs, who are residents of India, can claim deduction under this section. In order words, this means that tax deductions can be claimed, provided that the concerned entity has been living within the country for that tax year and the expenses relating to medical treatment are incurred on self or a family member, like spouse, parent or sibling, who is dependent on them.
Deductions amounting to the following figures can be claimed under Section 80DDB:
For Financial Year 2014-15 (Assessment Year 2015-16)
An assessee is eligible to claim tax deduction of Rs. 40,000 or the actual amount paid, whichever is lower.
Senior citizens, above the age of 60 years, are eligible for tax deduction of Rs. 60,000 or the amount actually paid, whichever is lower.
From Financial Year 2015-16 onwards (Assessment Year 2016-17)
An assessee is eligible for tax deduction of Rs. 40,000 or the actual amount paid for medical treatment, whichever is lower.
Senior citizens, between the ages of 60 years and 80 years, can claim tax deduction of Rs. 60,000 or the actual amount spent on the medical treatment, whichever is lower.
Super senior citizens, aged above 80 years, are eligible for tax deduction of Rs. 80,000 or the actual amount paid for the medical treatment, whichever is lower. From Financial Year 2018-19 onwards (Assessment Year 2019-20)
An assessee is eligible to claim tax deduction of Rs. 40,000 or the actual amount paid, whichever is lower.
Senior citizens, above the age of 60 years, are eligible for tax deduction of Rs. 1,00,000 or amount actually paid, whichever is lower.
According to the Income Tax Department, following are the eligible diseases or ailments that are taken into consideration for claiming tax deduction under section 80DDB:
(1) Neurological diseases, where the disability level is certified to be of 40% and more -
Dementia
Dystonia Musculorum Deformans
Aphasia
Motor Neuron Disease
Ataxia
Chorea
Hemiballismus
Parkinson’s Disease
(2) Malignant Cancers
(3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(4) Chronic Renal failure
(5) Hematological disorders
Hemophilia
Thalassaemia
For claiming deduction under Section 80DDB of the Income Tax Act, 1961, the assessee has to provide proof that the medical treatment has actually taken place. It is mandatory to obtain a certificate from a prescribed authority, from whom the medical treatment has been availed, if one wishes to claim deduction under this section.
According to the Income Tax Department’s website, the following specialists can issue certificates under section 80DDB:
| Disease | Specialist |
|---|---|
| For neurological diseases, where the disability level is certified to be 40% and above (as mentioned under the heading ‘Diseases or Medical Ailments specified under Section 80DDB’ for diseases listed in point 1 (a) - (h)) | A Neurologist with a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree that is recognized by the Medical Council of India |
| For Malignant Cancers | An Oncologist with a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree that is recognized by the Medical Council of India |
| For Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | Any specialist holding a postgraduate degree in General or Internal Medicine, or any equivalent degree that is recognized by the Medical Council of India |
| For Chronic Renal failure | A Nephrologist with a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist with a Master of Chirurgiae |
| (M.Ch.) degree in Urology or any equivalent degree that is recognized by the Medical Council of India | |
| For Hematological disorders | A specialist holding a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree that is recognized by the Medical Council of India |
Note - In case a patient is receiving medical treatment in a government-run hospital for any of the ailments mentioned above, the prescription can be issued by any specialist who works full-time in that hospital, holding a post-graduate degree in General or Internal Medicine or any equivalent degree, recognized by the Medical Council of India.
Source: www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007232.htm
The prescription issued in respect of the diseases or ailments must contain:
The patient’s name
The patient’s age
Name of the disease or ailment
The specialist’s name
The specialist’s registration number
The specialist’s address
The specialist’s qualification
While proposing Budget 2018, Finance Minister Arun Jaitley provided a major relief to taxpayers by enhancing the tax deduction for medical treatment of senior citizens. Starting from Financial Year 2018-19, the maximum tax deduction that can be claimed under Section 80DDB for the medical treatment (of specified ailments) of senior citizens (60 years and above) is Rs. 1,00,000. The limit until then had been Rs. 60,000 for senior citizens (60 years to 80 years) and Rs. 80,000 for super senior citizens (80 years and above). This amendment shall be applicable from April 1, 2019 and will accordingly apply in relation to the assessment year 2019-20 and the subsequent years.
What is Section 80DDB?
Under Section 80DDB of the Income Tax Act 1961, an individual can claim tax deduction for medical treatment of certain specified ailments availed for self or a dependent. The dependent can be spouse, parent or sibling. From Financial Year 2018-19 onwards (Assessment Year 2019-20), an assessee is eligible to claim tax deduction of Rs. 40,000 or the actual amount paid, whichever is lower. In case of senior citizens, who are above the age of 60 years, tax deduction can be claimed up to Rs. 1,00,000 or amount actually paid, whichever is lower. This type of deduction is covered in Chapter VIA of the Income Tax Act, 1961. Individuals and HUFs, who are residents of India, can claim deduction under this section.
How can I get a certificate for claiming deduction under Section 80DDB?
The certificate that serves as proof of medical treatment (for specified ailments) can be obtained from a specialist. According to the Income Tax Department’s website, the following specialists will issue certificates under section 80DDB:
| Disease | Specialist |
|---|---|
| For neurological diseases, where the disability level is certified to be 40% and more: - Dementia - Dystonia Musculorum Deformans - Aphasia - Motor Neuron Disease - Ataxia - Chorea - Hemiballismus - Parkinson’s Disease | A Neurologist with a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree that is recognized by the Medical Council of India |
| For Malignant Cancers | An Oncologist with a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree that is recognized by the Medical Council of India |
| For Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | Any specialist holding a postgraduate degree in General or Internal Medicine, or any equivalent degree that is recognized by the Medical Council of India |
| For Chronic Renal failure | A Nephrologist with a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist with a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree that is recognized by the Medical Council of India |
| For Hematological disorders | A specialist holding a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree that is recognized by the Medical Council of India |
What are the details that need to be included in the Certificate?
The prescription issued in respect of the disease or ailment should contain:
The patient’s name
The patient’s age
Name of the disease or ailment
The specialist’s name
The specialist’s registration number
The specialist’s address
The specialist’s qualification
Which diseases are covered under section 80DDB?
The diseases and medical ailments covered under section 80DDB are:
(1) Neurological diseases, where the disability level is certified to be of 40% and higher-
(2) Malignant Cancers
(3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(4) Chronic Renal failure
(5) Hematological disorders
Hemophilia
Thalassaemia
What is the amount of deduction that can be claimed under Section 80DDB?
The deduction that can be claimed under Section 80DDB is as follows:
From Financial Year 2018-19 onwards (Assessment Year 2019-20)
The taxpayer is eligible to claim tax deduction of Rs. 40,000 or the actual amount paid, whichever is lower.
Senior citizens above the age of 60 years are eligible for tax deduction of Rs. 1,00,000 or amount actually paid, whichever is lower.
From Financial Year 2015-16 onwards (Assessment Year 2016-17)
The taxpayer is eligible for tax deduction of Rs. 40,000 or the actual amount paid for medical treatment, whichever is lower.
Senior citizens between the ages of 60 years and 80 years can claim tax deduction of Rs. 60,000 or the actual amount spent for the medical treatment, whichever is lower.
Super senior citizens, aged above 80 years, are eligible for tax deduction of Rs. 80,000 or the actual amount paid for the medical treatment, whichever is lower.
For Financial Year 2014-15 (Assessment Year 2015-16)
The taxpayer is eligible to claim tax deduction of Rs. 40,000 or the actual amount paid, whichever is lower.
Senior citizens, who are more than 60 years of age, are eligible for tax deduction of Rs. 60,000 or amount actually paid, whichever is lower.
