Section 80DDB of The Income Tax Act, 1961 - Deduction in respect of medical treatment, etc

 

Applicable Provisions:

1. Section 80DDB of The Income Tax Act, 1961 - Deduction in respect of medical treatment, etc
2. Rule 11DD of The Income Tax Rules, 1962 - Specified diseases and ailments for the purpose of deduction under section 80DDB
3. Form No - 10-I - Certificate of prescribed authority for the purposes of Section 80DDB-Omitted

Eligibility:

1. Resident Assessee actually paid for the treatment of the specified diseases during the previous year.
2. In case of Individual Assessee, treatment for himself or any of his dependent is eligible for deduction.
3. In case of HUF, treatment for any member of a Hindu undivided family is eligible for deduction.
4. Prescription from the specialists must be obtained for claiming the deduction
5. Eligible claim must be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer for the Treatment.

Specified Diseases:

(i) Neurological Diseases where the disability level has been certified 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 ;

(ii)  Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iv) Chronic Renal failure ;

(v)  Hematological disorders :

1. Hemophilia ;
2. Thalassaemia.

Prescriptions by Doctors/ Hospitals:

The prescription in respect of the diseases or ailments specified in sub-rule (1) shall be issued by the following specialists:—

1. for diseases or ailments mentioned in clause (i) of sub-rule (1) – a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India;
2. for diseases or ailments mentioned in clause (ii) of sub-rule (1) – an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India;
3. for diseases or ailments mentioned in clause (iii) of sub-rule (1) – any specialist having a post-graduate degree in General or Internal Medicine, or any equivalent degree which is recognised by the Medical Council of India;
4. for diseases or ailments mentioned in clause (iv) of sub-rule (1) – a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nehprology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree, which is recognised by the Medical Council of India;
5. for diseases or ailments mentioned in clause (v) of sub-rule (1) – a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognised by the Medical Council of India :

Notes:

1. If the patient is receiving the treatment in a Government hospital, the prescription may be issued by any specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognised by the Medical Council of India.
2. The prescription shall contain the name and age of the patient, name of the disease or ailment along with the name, address, registration number and the qualification of the specialist issuing the prescription:
3. Where the patient is receiving the treatment in a Government hospital, such prescription shall also contain the name and address of the Government hospital

Dependents:

1. In the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,
2. In the case of a Hindu undivided family, a member of the Hindu undivided family,
3. Dependent wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

Eligible Amount of Deduction:

1. If patient is a senior citizen, deduction allowable will be LOWER of Rs. 1,00,000 or amount actually paid for treatment during the year.
2. In case of Others, deduction allowable will be LOWER of Rs. 40,000 or amount actually paid for treatment during the year.
3. "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

Documentation:

1. Prescription issued by the Specialist
2. Copy of PAN of the dependent
3. Copy of Aadhaar of the dependent
4. Medical Bills