Section 80DDB of Income Tax

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Section 80DDB of Income Tax

Under Section 80 of the Income Tax Act, taxpayers can claim deductions on their gross total income. Thanks to this section, it is now possible to lower your tax liability.

This section has several subsections, one of which is Section 80DDB. In this post, we will learn about Section 80DDB of the Income Tax Act, including its tax benefits, eligibility criteria, deduction limit and more to help you understand how to make the most of it.

What is Sec 80DDB of the Income Tax Act?

Under Section 80DDB of the Income Tax Act, taxpayers are eligible to reduce their total gross income by deducting the amount of expenses paid for medical treatment for specified diseases and ailments.

An important point about Section 80DDB of the Income Tax Act is that deductions under this section are only available to those who follow the old tax regime. So, if you follow the new tax regime, you must know that you cannot claim this deduction.

In addition to this, if you have paid medical bills for diseases that are not specifically mentioned in Rule 11DD of the Income Tax Rules, then you will also not be eligible for this deduction.

Who is Allowed to Claim Deduction under Section 80DDB of the Income Tax Act?

  • Individuals who are residents of India and have paid a sum for medical treatment for themselves or a dependent (spouse, parents, children, or siblings).

  • Members of Hindu Undivided Families (HUFs)

Note: Senior citizens (those above 60 years) are eligible for deductions above the standard deduction limit.

Section 80DDB Deduction Limit

Person(s) in Question Age of the Person Receiving Treatment Section 80DDB Medical Expenditure Deduction limit in ₹
An Individual Below 60 Amount paid or ₹40,000, whichever is less
(OR)
Dependents of an Individual
(OR)
A Member of HUF
An Individual Above 60 Amount paid or ₹1,00,000, whichever is less
(OR)
Dependents of an Individual
(OR)
A Member of HUF

80DDB Deduction Diseases List

Type of Disease Name of the Diseases
Neurological Diseases (where disability is certified equal to or more than 40%) Dystonia, Dementia Musculorum Deformans, Parkinson’s, Chorea, Ataxia, Motor Neuron Disease, Hemiballismus, Aphasia
Oncological Diseases  All Kinds of Cancers
Urologic and Kidney Diseases  Chronic Renal Failure
Haematological Disorders Haemophilia, Thalassemia
Immunological Disorders AIDS (Acquired Immuno-Deficiency Syndrome)

Conditions for Claiming Deduction Under Section 80DDB Medical Treatment for Critical Illnesses

  • To claim deductions under section 80DDB’s medical expenditure rule the amount for medical expenses should be actually paid.

  • There should be sufficient proof of the expenses incurred, such as a prescription certificate from the respective specialist having a recognised medical degree.

  • The person should be an Indian resident.

  • Expenses paid should only be for specified ailments and diseases covered under 80DDB.

  • The person receiving the treatment should satisfy the provisions of Section 80DDB.

  • The level of disability in the case of neurological diseases should be 40% or above.

  • You can only get a deduction under Section 80DDB if you follow the old tax regime. So, you will not be able to claim this deduction under Section 115BAC of the Income Tax Act, i.e., under the new tax regime.

Conditions Regarding the Prescription by Specialists

  • To claim Section 80DDB deductions, it is essential to ensure that the specialist you are receiving treatment from satisfies the provisions of Rule 11DD. Otherwise, you will not be eligible to reduce your taxable income.
  • Prescription Given by Medical Specialist Required Qualification
    Neurologist Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree recognised by the Medical Council of India
    Oncologist Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree recognised by the Medical Council of India
    For Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) Post-graduate degree in General or Internal Medicine or any equivalent degree recognised by the Medical Council of India
    Urologist or Nephrologist Nephrologist having a Doctorate of Medicine (D.M.) degree in Nephrology recognised by the Medical Council of India
    (OR)
    Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree recognised by the Medical Council of India
    Haematologist Doctorate of Medicine (D.M.) degree in Haematology or any equivalent degree recognised by the Medical Council of India

Note: In case a person is receiving treatment for the specified diseases in a government hospital, the prescription certificate given by a specialist (with a postgraduate degree in General or Internal Medicine or any equivalent degree recognised by the Medical Council of India) will be acceptable.

How to Claim Deductions Under Section 80DDB?

  • When filing your Income Tax Return (ITR), go to the deductions section.

  • Find "80DDB- Medical treatment of specified disease" in the ITR form.

  • Select one option from the dropdown menu depending on the patient's age.

  • Enter the exact amount paid for medical expenses or ₹40,000, whichever is less.

  • Once you enter the amount, your gross total income will be reduced by that amount.

Documents Required for Claiming Deductions Under Section 80DDB

A prescription certificate with necessary details related to the patient and concerned specialist.

  • Medical bills

  • Patient's identity proof

Note: Earlier, to get deductions under Section 80DDB, form 10-I was required to be filled and submitted with the ITR. However, this rule has been discontinued, and you can now claim a deduction using the above-mentioned documents.

Details to be Mentioned in the Prescription Certificate

  • Name and age of the patient.

  • Name of the disease/disorder.

  • Name, qualifications, registration number and address of the specialist providing treatment and issuing the certificate.

In case the treatment is provided by a government hospital, the name and address of the relevant hospital is to be mentioned.

How Can Tata AIG’s Medical Insurance Help?

While deductions under Section 80DDB prove to be helpful in saving money in taxes, there are also various other options that you can opt for to get additional deductions. For example, a health insurance policy.

With Tata AIG's health insurance plans, you can avail of additional deductions under Section 80D of the Income Tax Act on the annual health insurance premiums paid. The benefits of health insurance do not remain limited to tax benefits only. With our health insurance policies, you will receive compensation for medical expenses incurred.

In case you want added protection, you can opt for our pre-existing disease cover in health insurance and get coverage against the financial burden associated with the treatment of pre-existing diseases, like diabetes, asthma, heart diseases and even kidney diseases.

So, buy health insurance from Tata AIG today and say goodbye to financial hardships.

Summing it Up

Section 80DDB of the Income Tax Act, 1961, is indeed a great support system for Indian taxpayers. Thanks to it, people who have paid a considerable amount of medical bills in a year can get a deduction of up to ₹40,000 or ₹1,00,000 (in the case of senior citizens).

However, to claim this deduction, it is important to ensure that the disease for which you have incurred medical expenses falls under Rule 11DD of the Income Tax Rules. Only then will you be eligible to get tax benefits.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Can we claim 80D and 80DDB deductions together?

Can we claim 80D and 80DDB deductions together?

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Absolutely yes. You can claim deductions under Section 80D and Section 80DDB of the Income Tax Act at the same time. However, you need to opt out of the new tax regime to take advantage of these deductions.

Is the 80DDB tax benefit applicable in the new tax regime?

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No. Deductions under Section 80DDB are not applicable to those who follow the new tax regime.

Is cataract surgery covered under 80DDB?

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No. Section 80DDB of the Income Tax Act, 1961, does not cover cataract surgery.

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