Deduction u/s 80DDB: Medical Treatment of Specified Ailments

In this article we discuss about the concept of deduction u/s 80DDB of the Income Tax Act, 1961 which is available to Individual or HUF for the medical treatment of specified ailments.

Who is eligible to this deduction:-

  • Indvidiual himself or a dependent of an individual or any member of a HUF (Hindu Undivided Family), who is a resident of India, during the previous year, is eligible for deduction.
  • The amount must be actually paid for medical treatment of such disease or ailment as may be specified in the rule 11DD made in this behalf by the Board.

Dependent means:-

  • In the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them.
  • In the case of a Hindu undivided family, a member of the Hindu undivided family.

Dependent wholly or mainly on such individual or Hindu undivided family for his support and maintenance.

Limit of Deduction:-

  • The amount of deduction can be allowed under this section is whichever less of the following:
      • Amount actually paidfor medical treatment or
      • 40,000/-.
  • In case of the assessee or his dependent or any member of a HUF of the assessee and who is senior citizen then maximum deduction can be allowed of Rs. 1,00,000.
  • Deduction under this section shall be reduced by the amount received, if any, under an insurance from insurer, or reimbursed by an employer, for the medical treatment of the person.
  • To claim deduction under this section it is required to obtain the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed.

Specified diseases:-

For the purpose of section 80DDB, the following shall be eligible diseases or ailments:

  1. Neurological Diseases where the disability level has been certified of 40% and above-
  • Dementia
  • Dystonia Musculorum Deformans
  • Motor Neuron Neuron Disease
  • Ataxia
  • Chorea
  • Hemiballismus
  • Aphasia
  • Parkinsons Disease
  1. Malignant Cancers
  2. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
  3. Chronic Renal Failure
  4. Hematological disorders-
  • Hemophilia
  • Thalassaemia