Under section 80DDB, you can deduct the medical care cost for a dependent with one of the diseases mentioned in the table below.
- Individuals or HUFs can claim it.
- Permitted to Indians who live there. When the government has spent money on a dependent's care, Dependents include a spouse, their children, their parents, and their siblings.
- If the dependent is insured and a payment or reimbursement is received from an insurer or employer, the insurance or reimbursement will be taken out of the deduction.
Starting with the fiscal year 2018–19 (the assessment year 2019–20 onwards), the penalty will be 40,000/- or the amount paid, whichever is smaller.
If the individual is a senior citizen or a super-senior citizen, the sum of one lakh rupees or the amount that was actually paid, whichever is less.
Where to get this certificate and who to get it from
A specialist can obtain the certificate by following the instructions in the following table.
Patients who receive treatment at a private hospital are exempt from the requirement to present a certificate issued by a government hospital.
Patients receiving treatment in a government-run hospital are required to obtain a certificate from any specialist who works full-time in that facility. This type of specialist is required to hold either a postgraduate degree in General Medicine or a degree that is considered to be similar to it and is approved by the Medical Council of India (MCI).
It is no longer necessary to have a certificate in Form 10I.
On the certificate, the patient's name and age, the name of the illness or condition, and the name, address, and registration number of the specialist who is granting the prescription are required to be included.
If the treatment is being administered at a government hospital, the name and address of the government hospital where the treatment is being administered should also be included.
What information ought to be included on the certificate?
To ensure that the certificate is comprehensive, the following information should be included on it:
- Name of the patient and their age.
- Identifying the name of the illness or condition.
- Information on the specialist who is issuing the certificate, including their name, address, and registration number.
- The specialist's academic and professional credentials.
- The name and address of the hospital where the patient is receiving treatment should also be included on the certificate if the patient is receiving treatment in a government hospital.
Considerations to make before submitting your claim for a deduction under Section 80DDB
The individual assesses dependents, including spouses, children, parents, and any brothers or sisters who are considered dependents for individual taxation.
A person dependent on another person is considered a family member in the context of a Hindu undivided family (HUF).
To be eligible for the deduction, you must obtain a certificate. The certificate can be received from a neurologist, oncologist, urologist, hematologist, immunologist, or other appropriate doctor. Alternatively, it can be obtained from any other applicable physician.
Suppose the person being assessed gets a portion or all of their medical expenses reimbursed by insurance or their employer. In that case, they cannot claim the total amount as a tax deduction. The amount that can be deducted legally will be determined by taking the available deduction and subtracting the amount that can be reimbursed. This is done so that the assessee is not given the benefit of reimbursements and a deduction on the same amount.