Understanding 80ddb: A Guide to Medical Treatment of Specified Diseases
When it comes to medical expenses, they can add up pretty quickly. The cost of medical treatment is especially high for those suffering from a specified disease. Luckily, the Income Tax Act, 1961, offers tax benefits to those who are undergoing medical treatment for a specified disease. One such provision is 80ddb.
What is 80ddb?
Section 80ddb of the Income Tax Act, 1961, provides a tax deduction for expenses incurred for medical treatments of specified diseases. Under this provision, an individual or a taxpayer can claim deductions on the expenses incurred for his own medical treatment or that of his dependents.
Who can claim 80ddb?
An individual who has incurred expenses for the medical treatment of specified diseases, which include malignancy, chronic renal failure, AIDS, and more, can claim a tax deduction under Section 80ddb. Moreover, the taxpayer can claim the benefit for himself or his dependents, such as spouse, children, parents, and siblings.
How much deduction can be claimed under 80ddb?
A taxpayer, who fulfills the criteria for claiming the deduction under 80ddb, can claim up to Rs. 1,00,000/- as a deduction from the taxable income. However, the amount depends on the extent of the disease and the severity of the patient’s condition.
What documents are required to claim deductions under 80ddb?
Taxpayers who want to claim deductions under 80ddb, need to furnish a medical certificate, signed by a specialist doctor. The certificate should establish the disease and its extent, along with a prescription for the necessary treatment.
Conclusion
To sum up, 80ddb offers tax benefits to individuals for medical treatment expenses incurred for specified diseases. Notably, it is crucial to keep all necessary documents like medical certificates, bills, and prescriptions in order to claim deductions. Taxpayers can claim up to Rs.1,00,000/- under Section 80ddb, and the amount can vary depending on the severity of the disease and the patient’s condition. As the cost of medical treatment is often very high, understanding the provisions and benefits under 80ddb can offer relief to those who are undergoing treatment for specified diseases.
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