Section 80DDB of Income Tax Act: Deduction Limit, Diseases Covered, Claim Deduction & Certificate

Q: Who is eligible for a deduction under Section 80DDB?

Individual taxpayers and HUFs incurring medical expenses for specified diseases for themselves or dependents can claim this deduction.

Q: What are some medical ailments specified under Section 80DDB?

Ailments include cancer, chronic kidney failure, AIDS, and other diseases listed under Rule 11DD.

Q: What is the difference between section 80DD and 80DDB?

Section 80DD is for expenses on dependents with disabilities, while 80DDB is for specified illnesses.

Q: Can deductions be claimed for both Section 80DD and 80DDB together?

Yes, provided the expenses and conditions meet the criteria for both sections.

Q: Is a certificate required to claim a deduction under Section 80DDB?

Yes, a certificate from a qualified specialist is mandatory.

Q: Is cancer covered under section 80DDB of the Income Tax Act?

Yes, cancer is a specified ailment covered under Section 80DDB.

Q: Is Section 80DDB allowed in the new tax regime?

No, deductions under Section 80DDB are not available in the new tax regime.

Q: Can I claim a deduction for medical bills of my parents under Section 80DDB?

Yes, if the expenses are incurred for specified diseases and the parent qualifies as your dependent.

Section 80DDB is an Indian provision that provides tax benefits for medical treatment of specific diseases. This section lets you claim deductions from your taxable income and avail financial relief for managing serious illnesses. Eligibility, precise documentation, and a clear understanding of deduction limits are key to benefiting from this section.

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What is Section 80DDB of Income Tax Act?

Section 80DDB of Income Tax Act allows individuals to claim tax deductions for medical expenses incurred on specified ailments, such as cancer, Parkinson’s disease, and chronic renal failure. These deductions help alleviate the financial burden on taxpayers facing high medical costs.

While Section 80DDB addresses medical expenses, it is distinct from deductions that you may claim under a life insurance policy, which focuses on long-term financial security and risk coverage. For smarter tax planning, you can combine 80DDB income tax provisions with a life insurance policy for comprehensive financial optimization.

Details of Deduction Allowed Under Section 80DDB

Under Section 80DDB, taxpayers may claim deductions for medical expenses related to specific illnesses, subject to compliance with eligibility criteria and documentation requirements. Here are the key details to note:

Eligible taxpayers:

Section 80DDB deductions are available to individuals and HUFs.
This section applies to medical expenses for self, spouse, children, parents, or siblings.

Specified diseases:

It includes ailments like cancer, chronic kidney failure, and Parkinson’s disease.
The complete list is defined under Rule 11DD of the Income Tax Rules.

Disability criteria:

Section 80DDB is not exclusively for individuals with disabilities. However, it includes provisions for taxpayers or dependents diagnosed with specific ailments, such as neurological diseases, cancer, or kidney failure, where medical certification confirms the illness. The specialist’s diagnosis must explicitly state the percentage and nature of the disability, ensuring clarity on the severity and its alignment with the prescribed criteria.

Treatment expenses:

It covers expenses for prescribed treatments only.
It does not include preventive or alternative treatments.

Prescription requirements:

A certificate from a qualified specialist is mandatory for claiming deductions.

Actual amount spent or specified limit:

The deduction is limited to the actual expenses incurred or the maximum amount specified under the Income Tax Act, whichever is lower.

Forms for claiming deduction:

Form 10-I is no longer essential.

Tax benefits:

Deduction reduces taxable income, offering significant savings.

Compliance and documentation:

Maintain all bills, prescriptions, and certificates for filing your income tax return.

How to Get a Certificate/Prescription of the Disease for 80DDB Deduction?

Claiming a deduction under Section 80DDB requires obtaining a certificate from a specialist doctor. This certificate confirms the diagnosis and treatment of specified diseases. Here is a step-by-step guide to acquiring this document:

Visit a Specialist Doctor:

Consult a specialist who is recognized under Rule 11DD of the Income Tax Act and qualified to diagnose the specific disease. Ideally, this should be a doctor practicing in a government-approved hospital.

Medical Examination and Diagnosis:

Undergo the necessary medical examination. The specialist will evaluate your condition to confirm the diagnosis and suggest the appropriate treatment plan.

Request for Prescription:

Request a detailed prescription from the specialist. The prescription must clearly state the patient’s name, diagnosis, treatment details, and the doctor’s credentials.

Prescribed Format:

Ensure the certificate is in the prescribed format. It should include the doctor’s registration number, hospital details, and other relevant information mandated by Rule 11DD.

Disability Certificate (if applicable):

If the patient is diagnosed with a neurological disease and has a disability of 40% or more, ensure a disability certificate is also obtained. This certificate should be issued by the prescribed medical authority.

Keep All Medical Bills and Receipts:

Maintain a record of all medical bills and receipts related to the treatment. These documents are essential for filing your income tax return and substantiating your deduction claim.

Submit the Prescription with the Income Tax Return:

While filing for your income tax return, include the details of the prescription and other required documents in the relevant sections. Retain the original certificate and bills for any potential audits.

No Specific Government Form:

Unlike some deductions that require specific forms, the prescription serves as the primary document for claiming the deduction under Section 80DDB. However, it must comply with the specified format and guidelines.

List of Diseases and the Specialists Who Can Provide Certificate Under Section 80DDB

Section 80DDB outlines a list of specific diseases for which taxpayers can claim deductions if the necessary certifications are obtained:

Disease	Specialist Required	Certification Details
Cancer	Oncologist	The certificate should confirm the diagnosis and outline the treatment plan.
Chronic Kidney Failure	Nephrologist	It should include details of ongoing dialysis or transplant procedures, if applicable.
Parkinson’s Disease	Neurologist	There must be an explicit mention of the neurological condition and its severity.
Hematological Disorders	Hematologist	It should specify the disorder type and any recommended therapies or transfusions.
AIDS	Immunologist	The certificate must include information on treatment protocols and the patient’s medical history.

Ensure the certificate contains the specialist’s credentials, registration number, and signature. This document is crucial for claiming the deductions under the prescribed rules of section 80DDB.

Prescription Format for Claiming 80DDB Deduction

A well-documented prescription acts as proof of the diagnosis and the necessity of the medical expenses, making it an essential part of your tax deduction process.

Patient’s name and relationship to the taxpayer.
Diagnosis and treatment details.
Specialist’s name, qualification, and registration number.
Date and signature of the doctor.

What Should be Mentioned in the Certificate?

Accuracy in the certificate is necessary for tax compliance and expediting the claim approval process. Each detail helps verify the authenticity and relevance of the expenses incurred for the specified medical condition.

Full name and age of the patient.

Diagnosis and specified disease.

Estimated treatment expenses.

Doctor’s credentials and seal.

Compliance with Rule 11DD requirements.

How to Fill Section 80DDB Form?

Follow these steps to make sure your claim is complete and aligns with the legal requirements.

1. Mention personal and contact details.

2. Specify the relationship with the patient.

3. Attach required certificates and bills.

4. Calculate the deduction based on actual expenses or the allowable limit.

5. Submit the form while filing your income tax return.

How to Claim Deduction Under Section 80DDB?

Claiming a deduction under Section 80DDB involves adhering to a set of predefined steps to ensure your eligibility and compliance with the Income Tax Act.

1. Ensure eligibility by verifying the disease.

2. Obtain a certificate from a specialist.

3. Maintain all medical bills and receipts.

4. Fill out the relevant sections in the income tax return form.

5. Submit the necessary documents.

Who Can Claim a Deduction Under Section 80DDB of the Income Tax Act?

The provision under Section 80DDB aims to alleviate the financial stress associated with medical treatments. However, only certain categories of taxpayers can claim this deduction based on their relationship to the patient and the incurred expenses.

Individual taxpayers.
Members of Hindu Undivided Family (HUF) .
Taxpayers incurring expenses for specified dependents.

What Documents are Required to Claim Deduction Under Section 80DDB?

The documents required to claim deductions under Section 80DDB ensure transparency and provide proof of the expenses incurred. Submitting these documents accurately can help avoid any disputes or delays.

Specialist’s certificate.
Medical bills and receipts.
Proof of relationship with the patient.

Things to Remember While Claiming Deduction Under Section 80DDB

Remembering the following points will help you avoid common mistakes and optimize your tax savings.

Maintain original documents for verification.
Check the deduction limits applicable to your age group.
Ensure all documents comply with Rule 11DD.
Use an income tax calculator to estimate deductions.

How Much Deduction is Allowed Under Section 80DDB?

Understanding the deduction limits is key to determining the financial relief available under Section 80DDB. These limits vary based on the taxpayer’s age and the nature of the medical expenses incurred.

Section 80DDB Deduction Limits:

The deduction is capped at ₹40,000 for taxpayers under 60, whereas senior citizens over 60 are eligible for a deduction of ₹100,000. These provisions are designed to provide substantial financial support while adhering to prescribed guidelines.

Amount Allowed as Deduction u/s Section 80DDB

For taxpayers, it is important to note that the deduction limits under Section 80DDB have changed over the years. This table provides a clear overview of these changes to help you understand the eligible amount for different financial years:

Financial Year	Individuals (<60 years)	Senior Citizens (60-79 years)	Super Senior Citizens (80+ years)
FY 2018-19 and onwards	₹40,000 or actual expenses, whichever is less.	₹1,00,000 or actual expenses, whichever is less.	₹1,00,000 or actual expenses, whichever is less.
FY 2015-16 to FY 2017-18	₹40,000 or actual expenses, whichever is less.	₹60,000 or actual expenses, whichever is less.	₹80,000 or actual expenses, whichever is less.
FY 2014-15	₹40,000 or actual expenses, whichever is less.	₹60,000 or actual expenses, whichever is less.	₹60,000 or actual expenses, whichever is less.

How to Adjust the Amount of Deduction with Any Reimbursement?

Taxpayers often receive reimbursements for medical expenses through insurance or employer-provided health schemes. Deducting such reimbursements is essential when calculating the amount eligible for tax deduction under Section 80DDB. Reimbursements received through health insurance or employer-provided schemes reduce the deduction.

For instance, suppose a taxpayer incurs medical expenses of ₹60,000 for a specified disease. If the taxpayer is eligible for a maximum deduction of ₹40,000 under Section 80DDB but receives ₹30,000 as reimbursement from insurance, the deduction claimable would be reduced to ₹10,000 (₹40,000 - ₹30,000 reimbursement).

In cases where reimbursements exceed the eligible deduction limit, no claim can be made under this section.

Conclusion

Taxpayers can ensure seamless benefits under the 80DDB income tax provisions by planning ahead and avoiding common pitfalls. For instance, ensuring timely submission of accurate documentation and maintaining a record of all medical expenses are important steps. It is also wise to seek professional advice when calculating deductions to avoid mistakes that might lead to rejections. Additionally, understanding the reimbursements and their impact on deductions can prevent discrepancies. Looking forward, taxpayers should stay informed about any amendments to the Income Tax Act that might affect the provisions of section 80DDB.

FAQs on Section 80DDB

Who is eligible for a deduction under Section 80DDB?