Deduction under Section 80DDB & how to claim it for diseases covered under this

What is Section 80DDB?

Section 80DDB of the Income Tax Act provides tax deductions for expenses incurred on the medical treatment of specified diseases. This deduction is applicable for resident individuals and Hindu Undivided Families (HUFs). It aims to reduce the financial burden associated with time consuming and expensive treatments for critical diseases.

Who Can Claim the Deduction?

Section 80DDB deduction can be claimed by:

• Resident Individuals: An individual who is a resident of India can claim section 80DDB deduction for themselves, their spouse, children, parents, or any other dependent relative.
• Hindu Undivided Families (HUFs): An HUF can claim section 80DDB deduction for expenses incurred on the medical treatment of any member of the HUF.

Eligible Diseases and Ailments:

The deduction under Section 80DDB is not applicable to all medical conditions. However it specifically covers expenses incurred on the treatment of the following diseases and ailments:

• Neurological Diseases: This includes conditions like Dementia, Parkinson's Disease, and Motor Neuron Disease.
• Malignant Cancers: Expenses incurred on the treatment of any type of malignant cancer are eligible for deduction.
• AIDS (Acquired ImmunoDeficiency Syndrome): Treatment expenses for AIDS are covered under this section.
• Chronic Renal Failure: Expenses related to the treatment of chronic kidney failure are also included.
• Hematological Disorders: Specific hematological disorders as certified by a specialist are eligible.

Amount of Deduction:

The amount of deduction available under Section 80DDB depends on the age of the patient and is subject to certain limits. The deduction under Section 80DDB is available for the actual expenses incurred or the specified limit, whichever is lower. The limits are mentioned as follows:

• Individuals below 60 years of age: Up to Rs.40,000.
• Individuals above 60 years of age (Senior Citizens): Up to Rs.1,00,000.
• Individuals above 80 years of age (Super Senior Citizens): Up to Rs.1,00,000.

Documentation Required:

To claim the deduction under Section 80DDB, you need to have the following documents:

• Prescription from a specialist: A prescription or certificate from a specialist doctor certifying the diagnosis of the specified disease or ailment is mandatory. This certificate should clearly mention the disease, its severity, and the recommended treatment.
• Medical bills and receipts: You need to maintain proper records of all medical expenses incurred, including bills, receipts, and payment proofs in order to claim the expenses incurred.
• Self-declaration: In some cases, a self-declaration stating the relationship with the patient and the expenses incurred might be required.

Points to Remember:

• The deduction under Section 80DDB is available only for expenses incurred on the treatment of the specified diseases under section 80DDB deduction. It does not cover preventive healthcare measures or general health check-ups.
• The specified diseases must be certified by a specialist doctor in the relevant field.
• It's necessary to maintain accurate records of all medical expenses and supporting documents.

Conclusion:

Section 80DDB provides a valuable tax benefit for individuals and HUFs facing the financial burden of treating specified critical illnesses. By understanding the eligibility criteria, the amount of deduction available, and the required documentation, taxpayers can effectively utilize this provision to manage their healthcare expenses and reduce their tax liability.