A Comprehensive Guide to Availing 80DDB for Medical Treatment of Specified Diseases
If you or your family member has been diagnosed with a specified disease that requires medical treatment, the cost can be overwhelming. However, there is a provision in the Indian Income Tax Act that can help you save money on medical expenses – Section 80DDB.
Section 80DDB allows taxpayers to claim a deduction for the expenses incurred on the medical treatment of specific diseases. In this guide, we will discuss, in detail, what Section 80DDB is, which diseases are covered, who is eligible to claim the deduction, and how to claim the deduction.
What is Section 80DDB?
Section 80DDB is a provision in the Indian Income Tax Act that allows deductions for medical expenses incurred for specific diseases. The deduction can be claimed by individuals, Hindu Undivided Families (HUFs), and senior citizens.
Diseases Covered under Section 80DDB
Section 80DDB covers a list of specific diseases and ailments. These include:
1. Neurological diseases, such as Dementia, Parkinson’s disease, and Ataxia
2. Malignant cancers
3. Chronic kidney disease
4. Hematological disorders, such as Hemophilia and Thalassemia
5. AIDS
6. Chronic liver disease
7. Full-blown tuberculosis
8. Motor neuron disease
9. Specified disabilities, such as blind, deaf, or orthopedically handicapped people.
These diseases have been classified as specified diseases under Section 80DDB.
Who is Eligible to Claim Deduction under Section 80DDB?
To claim a deduction under Section 80DDB, the following conditions must be met:
1. The taxpayer must be an individual, a Hindu Undivided Family (HUF), or a senior citizen.
2. The expenses incurred should be towards the medical treatment of the specified disease for the taxpayer himself/herself or his/her spouse, children, siblings, or parents.
3. The taxpayer should have a certificate from a specialist doctor working in a government hospital, specifying the disease, the name of the patient, and the expenses incurred.
How to Claim Deduction under Section 80DDB?
To claim a deduction under Section 80DDB, the taxpayer needs to follow these steps:
1. Obtain a certificate from a specialist doctor working in a government hospital specifying the details of the disease and the amount spent on treatment.
2. Submit the certificate along with the income tax return.
3. Claim the deduction amount in the relevant section of the income tax return.
Deduction Limit under Section 80DDB
The maximum deduction limit under Section 80DDB for individuals and Hindu Undivided Families (HUFs) is Rs. 40,000. For senior citizens, the limit is Rs. 1,00,000.
However, these limits are subject to change as per the government’s policies and regulations.
Conclusion
Section 80DDB is an important provision that can help taxpayers save money on medical expenses. However, it is important to ensure that all the conditions are met, and the necessary certificates and documents are obtained before claiming the deduction. We hope this comprehensive guide has helped you understand the provisions of Section 80DDB, the diseases covered, eligibility criteria, and the procedure to claim the deduction.
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