Key takeaways:
- Disease covered: AIDS, Cancer, Chronic Renal Failure, Dementia, Hemophilia, Thalassaemia, Parkinson's Disease, Motor Neuron Disease, Chronic Obstructive Pulmonary Disease (COPD)
- Get a certificate from a specialist of the particular disease. For example, if the patient got treated for kidney diseases, you will need a certificate from a Nephrologist
- For people below 60 years, you can claim a 80DDB deduction up to INR 40,000
- For people above 60, you can claim a deduction up to INR 10,00,00
Section 80DDB of the Income Tax Act offers significant relief by allowing deductions for medical expenses on specified diseases. If you or your family member had to bear medical expenses incurred in the financial year 2023-24, you must learn how section 80DDB benefits you. We will also help you understand how to navigate through the entire process so that you can easily claim your deductions.
Table of Contents Show
- Assessment Year (AY) 2024-25: The year in which you file your tax returns for the income earned in the previous year.
- Financial Year (FY) 2023-24: The year in which the income was earned and the expenses were incurred.
Overview of Section 80DDB Deduction
Utilizing Section 80DDB of the Income Tax Act, 1961, taxpayers can claim deductions for medical expenses incurred on certain types of diseases. The provision of ITA provides quite a significant financial relief to taxpayers and their dependents. The purpose of these deductions is to make healthcare more affordable and accessible for serious or chronic diseases.
80DDB Deduction Diseases List
| Disease | Medical Specialist |
|---|---|
| AIDS | Any Registered Medical Practitioner |
| Cancer | Oncologist, Hematologist, Radiation Therapist |
| Chronic Renal Failure | Nephrologist |
| Dementia | Neurologist, Geriatrician |
| Hemophilia | Hematologist |
| Thalassaemia | Hematologist |
| Parkinson’s Disease | Neurologist |
| Motor Neuron Disease | Neurologist |
| Chronic Obstructive Pulmonary Disease (COPD) | Pulmonologist |
Who Can Claim This Deduction?
The deduction under Section 80DDB can be claimed by:
- Individuals: Any taxpayer who incurs medical expenses for the above-mentioned treatment/medical conditions for themselves or their dependents.
- Dependents: For individuals, dependents include spouse, children, parents, and siblings. For HUFs, any member of the HUF can be covered.
- Hindu Undivided Families (HUFs): The deduction can also be claimed by HUFs for medical expenses incurred for any member of the family.
Note: The deduction is available only for expenses incurred for the treatment of specified diseases or ailments as defined by the Income Tax Act.
80DDB Deduction Limit
| Age of the Patient | Deduction |
|---|---|
| Below 60 years | Up to Rs 40,000 |
| 60 years but below 80 years | Up to Rs 1 lakh |
| Above 80 years of age | Up to Rs 1 lakh |
Note: Please note that if you have a life insurance policy which covers expenses of these treatments, you will need to factor in the reimbursed amount.
For instance, if you spent INR 1 lakh on the treatment and your life insurer reimbursed 50,000 out of the amount, you can only claim the remaining Rs 50,000 under section 80DDB.
Documentation and Proof Required
To claim your 80DDB deductions, you need to submit certain documents:
- A specialist doctor’s certificate for the treatment
- Bills and receipts i.e., proof of payment
- Proof of the patient’s identity, such as a PAN card or Aadhaar card
- Form 10-I, a declaration by the assessee in a specified format, which serves as the claim for deduction.
How to Get an 80DDB Certificate?
You can take an 80DDB certificate from a specialist as per the table above.
- If your patient is getting treated at a private hospital, you don’t need a certificate from a government doctor.
- If your patient is getting treated at a government hospital, you need to get a certificate from a specialist working full-time at the hospital.
- The certificate must have the patient’s name, age, name of the disease, doctor’s name, qualification, hospital’s address, and registration number.
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