The complete guide about Section 80DDB is as follows. Read the complete article to check the Amount of Deduction under Section 80DDB and conditions to avail the provision of 80DDB along with an Example.
Section 80DDB of Income Tax Act
Section 80DDB: Deduction in respect of medical treatment
Under Section 80DDB, Deductions of medical expenses on treatment of specified ailments (such as Cancer, AIDS, and Neurological diseases) can be claimed. The maximum amount of deduction is allowed from gross total income on condition that you should not receive any medical reimbursement from any insurance company or employer for this amount.
In case any amount which has been so paid (for medical treatment) has been reimbursed by the employer or received back under insurance from an insurer, then the deduction allowed under Section 80DDB shall be reduced by the amount reimbursed/received. The provision of this Section 80DDB is applicable to one who satisfies the following conditions.
Conditions to claim Deduction under 80DDB
- The taxpayer/assessee is resident in India.
- The taxpayer is an individual (maybe a foreign citizen or an Indian citizen) or an HUF (Hindu Undivided Family).
- The assessee has actually paid any amount for the medical treatment of a specified ailment or disease as prescribed by the board.
- The expenditure is actually incurred for the medical treatment of the taxpayer/assessee himself or mainly/wholly dependent wife/husband, parents, children, sisters and brothers of the taxpayer. If the taxpayer is an HUF, the expenditure is actually incurred for the medical treatment of any member of the family who is mainly/wholly dependent upon the family.
- The assessee/taxpayer shall have to submit a certificate in the prescribed form from an oncologist, a neurologist, a hematologist, a urologist, an immunologist or such other specialist, working in a government hospital. From the AY (assessment year) 2016-17, the assessee is required to obtain a prescription from a specialist doctor for the purpose of availing this deduction.
Section 80DDB Specified Diseases
Specified Diseases u/s 80DDB are as follows.
- Neurological Diseases where the disability level has been certified to be of 40% and above,
- Dystonia Musculorum Deformans.
- Motor Neuron Disease.
- Parkinsons Disease.
- Malignant Cancers.
- Full Blown AIDS (Acquired Immuno-Deficiency Syndrome).
- Chronic Renal failure.
- Hematological disorders:
Amount of Deduction under Section 80DDB
If all the above conditions are satisfied, the amount of deduction under Section 80DDB is Rs. 40,000 or the amount actually paid, whichever is lower.
- Where the amount is paid in respect of the assessee or his dependant or any member of an HUF of the assessee and who is a senior citizen, then Rs. 60,000 or actual expenditure, whichever is less, is available as a deduction under section 80DDB.
- In the case of medical treatment of a super senior citizen (i.e., a resident individual who is at least 80 years of age at any time during the previous year), the amount of deduction will be Rs. 80,000 or actual expenditure, whichever is lower. This is applicable from the AY (Assessment Year) 2016-17.
- Deduction under section 80DDB 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 above.
Related Post: Section 80D
Comparison between AY 2015-16 and AY 2016-17
|Particulars||AY 2015-16||AY 2016-17|
|HUF or Individual below the 60 Years of Age:||Rs. 40,000||Rs. 40,000|
|Any resident individual of the age of 60 years or above but less than 80 years:||Rs. 60,000||Rs. 60,000|
|Any resident individual of the age of 80 years or above:||Rs. 60,000||Rs. 80,000|
Points to Remember
- The taxpayer/assessee has to obtain the prescription for the medical treatment from an oncologist, a neurologist, a hematologist, a urologist, an immunologist or such other specialist, as may be prescribed.
- In order to claim deduction under section 80DDB, you have to submit Form 10-I from a specialist doctor confirming the treatment of the disease.
- At many places, the Government hospitals do not have doctors specializing in the above branches of medicine. Due to this or many other reasons, it may be difficult for an assessee to obtain a certificate from a Government Hospital.
- In view of the above, the Finance Act 2015 has amended Section 80DDB so as to provide that the taxpayer can submit a certificate from a specialist doctor whether working in Government Hospital or not. In other words, up to AY 2015-16 the Certificate was required only from a specialist Doctor working in a Government hospital but from Assessment Year 2016-17 it is amended to provide by any specialist doctor.
- The amount, if any, received by the assessee from his employer, by way of reimbursement for such expenditure or from any insurer shall be deducted from the amount of deduction which has been so paid.
|S.No||Name of the taxpayer||X||Y||Z||A||B|
|1.||Residential status of the taxpayer||Resident||Resident||Resident||Resident||Non-Resident|
|2.||Expenditure incurred on medical treatment of dependent mother in a hospital recognized by the Chief Commissioner.||Rs. 90,000||Rs. 26,000||Rs. 80,000||Rs. 1,00,000||Rs. 34,000|
|Age of Mother||58 years||57 years||62 years||63 years||65 years|
|Residential status of dependent mother||Resident||Non-Resident||Resident||Non-Resident||Resident|
|Whether the disease is specified under rule made by the Board||Yes||Yes||Yes||Yes||Yes|
|Amount received from insurance company||Rs. 4,000||Rs. 14,000||Rs. 70,000||Rs. 15,000||Rs. 7,000|
|Amount received from the employer of the taxpayer||Rs. 6,000||Rs. 3,000||Rs. 4,000||Rs. 20,000||Rs. 16,000|
|3.||Deduction under Section 80DDB if no money is recovered from insurance company and employer||Rs. 40,000||Rs. 26,000||Rs. 60,000||Rs. 40,000||Nil|
|Less: Amount received from an insurance company and employer||Rs. 10,000||Rs. 17,000||Rs. 74,000||Rs. 35,000||Rs. 23,000|
|Amount of deduction under section 80DDB||Rs. 30,000||Rs. 9,000||Nil||Rs. 5,000||Nil|
FAQ’s on Income Tax Deduction under Section 80DDB
I have incurred Rs. 40, 000 as medical expenses for my grand mother on Hematological disorders. Can I claim it as tax deduction under section 80DDB?
No, you are not eligible for this deduction because section 80DDB does not allow any payment for medical treatment of grand mother as deduction.
Who can issue a certificate under section 80DDB of Income Tax Act?
Following persons can issue certificate to claim deduction under section 80DDB of I.T. Act for medical treatment;
- For Neurological Diseases: a Neurologist having a D.M. (Doctorate of Medicine) degree in Neurology or any equivalent, which is recognized by the Medical Council of India.
- For Chronic Renal failure: a Urologist having a M.Ch. (Master of Chirurgiae) degree in Urology or a Nephrologists having a D.M. (Doctorate of Medicine) degree in Nephrology or any equivalent, which is recognized by the Medical Council of India.
- For Malignant Cancers: an Oncologist having a D.M. (Doctorate of Medicine) degree in Oncology or any equivalent, which is recognized by the Medical Council of India.
- For Hematological disorders: a specialist having a D.M. (Doctorate of Medicine) degree in Hematology or any equivalent, which is recognized by the Medical Council of India.
At many places, the Government hospitals do not have doctors specializing in the above branches of medicine. Due to this or many other reasons, it may be difficult for an assessee to obtain a certificate from a Government Hospital. In view of the above, the Finance Act 2015 has amended Section 80DDB so as to provide that the taxpayer can submit a certificate from a specialist doctor whether working in Government Hospital or not.
I am a N.R.I. (Non-Resident Indian) and have incurred Rs. 30, 000 as medical expenses for medical treatment of my dependent father (resident) who is suffering from Neurological Diseases. Can I claim this amount as deduction under section 80DDB against my taxable income that I am generating in India?
No, you are not eligible for this deduction because section 80DDB is not applicable for a taxpayer/assessee who is a N.R.I. (non-resident Indian) even though the person for whom you are making payment is a resident of India.
What is the difference between deduction under sections 80DDB and 80DD?
|Section 80DD||Section 80DDB|
|Section 80DD is for the maintenance including medical treatment of a dependent person with disability.||Section 80DDB is for your own or dependent’s medical treatment for a specified disease.|
|Deduction under section 80DD is given irrespective of the actual amount spent.||Deduction under section 80DDB is either the actual amount or the limit prescribed, whichever is less.|
How to claim deduction under 80DDB?
In order to claim deduction under section 80DDB, you have to submit Form 10-I from a specialist doctor confirming the treatment of the disease.
What are the Diseases Covered Under Section 80DDB?
- Neurological Diseases.
- Malignant Cancers.
- Full Blown A.I.D.S. (Acquired Immuno-Deficiency Syndrome).
- Chronic Renal failure.
- Hematological disorders.