Medical expenses can be a significant burden on one’s finances, and in such cases, a tax deduction can provide some relief. The Income Tax Act of India provides various provisions for taxpayers to claim tax deductions on expenses incurred on specific treatments and medical conditions. One such provision is Section 80DDB, which provides tax deductions on expenses incurred on certain medical treatments.
Section 80DDB allows taxpayers to claim deductions on expenses incurred on medical treatments for specified diseases or ailments. The deductions can be claimed for self, spouse, children, or dependent parents. The deduction amount varies, depending on the age of the patient and the type of disease.
Specified Diseases
Section 80DDB covers medical expenses incurred on the treatment of specific diseases or ailments. The list of specified diseases is mentioned in Rule 11DD, which includes diseases such as neurological diseases, malignant cancer, chronic renal failure, etc. The complete list of specified diseases can be found on the Income Tax Department’s website.
Eligibility for Deduction under 80DDB
To claim a deduction under Section 80DDB, the following conditions must be met:
• The expense must be incurred on the treatment of specified diseases, as listed under Rule 11DD.
• The treatment should have been obtained from a certified medical practitioner or hospital.
• The taxpayer must have a certificate issued by a certified medical practitioner. The certificate should specify the disease or ailment, along with the level of treatment required.
Deduction Limit
The amount of deduction allowed under Section 80DDB varies based on the age of the patient and the type of disease. For patients below 60 years of age, the maximum deduction allowed is Rs. 40,000. For senior citizens above 60 years of age, the maximum deduction allowed is Rs. 1 lakh.
Conclusion
Section 80DDB is a beneficial provision for taxpayers in India, as it provides tax deductions on medical expenses incurred on specified diseases. However, to claim this deduction, the taxpayer must have the necessary documents like a medical certificate issued by a certified medical practitioner or hospital. Taxpayers should ensure that they keep all the necessary documents ready and avail the deductions they are entitled to under Section 80DDB.
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