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Deduction-under-section-80DDB-for-Medical-Treatment-of-Specified-Diseases

 

Deduction under section 80DDB for Medical Treatment of Specified Diseases

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Introduction-
The Deduction under section 80DDB is available to all Residents Individual or HUF, for medical treatment of specified disease or ailment for self or dependent relatives.
  • In case of Individuals- Self , or a disabled dependent can be Spouse, Children, Parents, Brother/Sister (siblings)
  • In case of HUF- Any member of the HUF
 
Specified diseases or ailments- The following diseases specified under rule 11DD qualify for deduction under section 80DDB. The Prescription should be issued by specialized Doctor of specific diseases or having Doctorate of Medicine degree or equivalent qualification etc.

  • Neurological diseases where the disability level has been certified (prescription issued by Neurologist having ‘Doctorate of Medicine’ degree or equivalent qualification) to be of 40% and above:
    1. Dementia
    2. Dystonia Musculorum Deformans
    3. Motor Neuron Disease
    4. Ataxia
    5. Chorea
    6. Hemiballismus
    7. Aphasia
    8. Parkinsons Disease
  • Malignant Cancers (Prescription issued by Oncologist having Doctorate of Medicine degree or equivalent qualification)
  • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) (Prescription issued by any specialist having a post-graduate degree in General or Internal Medicine or equivalent qualification)
  • Chronic renal failure  (Prescription issued by a Nephrologist / Urologist having Doctorate of Medicine degree or equivalent qualification)
  • Hematological disorders (Prescription issued by a Hematologist having Doctorate of Medicine degree or equivalent qualification):
    1. Hemophilia
    2. Thalassaemia

The Prescription should be proper signed or stamped by prescribed Doctor on his proper letter head or a letter head of a hospital. It also includes the following details-
  1. Name and age of the patient
  2. Name of the disease or ailment
  3. Name, address, registration number and the qualification of the specialist issuing the prescription.
  4. If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.

Amount of Deduction u/s 80DDB-
  1. In case of person subject to medical treatment of specified disease is not a senior citizen, the assessee will be eligible for tax deduction of Rs. 40,000 or the actual amount spent, whichever is lower.
  2. In case of person subject to medical treatment of specified disease is a senior citizen, the assessee will be eligible for tax deduction of Rs. 1,00,000 (w.e.f. F.Y. 2018-19) earlier it was 60,000 or the actual amount spent, whichever is lower.
  3. In case the person subject to medical treatment of specified disease is a super senior citizen, the assessee will be eligible for tax deduction of Rs. 1,00,000 (w.e.f. F.Y. 2018-19) earlier it was 80,000 or the actual amount spent, whichever is lower.

Note- from the amount of deduction computed in aforesaid manner, amount, if any, received by the taxpayer from any insurer or from his employer, by way of reimbursement for such expenditure shall be deducted from the amount of deduction allowed under section 80DDB.


Example 1-

During the financial year 2018-19, Mr. X spent Rs. 80,000 on medical treatment of specified diseases of his spouse with the age of 35 years. He has received Rs. 22,000 by way of reimbursement of such expenditure from a medical insurance policy. Can he claim any deduction in respect of expenditure incurred by him on medical treatment of specified diseases under section 80DDB?
Answer– Mr. X can claim deduction under section 80DDB of Rs. 18,000 (i.e., Rs. 40,000 maximum limit of deduction – Rs. 22,000 reimbursement from a medical insurance policy).

Example 2-
During the financial year 2018-19, Mr. X spent Rs. 90,000 on medical treatment of specified diseases of his father with the age of 65 years. He has received Rs. 35,000 by way of reimbursement of such expenditure from a medical insurance policy. Can he claim any deduction in respect of expenditure incurred by him on medical treatment of specified diseases under section 80DDB?
Answer–
Mr. X can claim deduction under section 80DDB of Rs. 55,000 [i.e., Rs. 90,000 (Maximum limit of Rs. 1,00,000 or Actual Expenses of Rs. 90,000 whichever is less) – Rs. 35,000 reimbursement from a medical insurance policy.

Example 3-
During the financial year 2018-19, Mr. X spent Rs. 1,20,000 on medical treatment of specified diseases of his father with the age of 65 years. He has no medical insurance policy. What amount can he claim for deduction in respect of expenditure incurred by him on medical treatment of specified diseases under section 80DDB?
Answer–

Mr. X can claim deduction under section 80DDB of Rs. 1,00,000 (i.e. Maximum limit of Rs. 1,00,000 or Actual Expenses of Rs. 1,20,000 whichever is less)

 



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