Understanding 80DDB: Tax Benefits for Treatment of Specified Diseases
You don’t have to be told how expensive medical treatment can be, especially when it’s for serious ailments such as cancer, renal failure, and heart diseases. Despite the healthcare policies rolled out by the government, the expenses due to medical treatment, in most cases, are still unmanageable. Ever heard of the 80DDB tax benefit? If you haven’t, it’s high time you did.
What is 80DDB?
Section 80DDB of the Income Tax Act provides a tax benefit for expenses incurred towards the treatment of specified diseases, including malignant cancers, neurological disorders, Parkinson’s disease, and many others.
Eligibility Criteria for 80DDB
To qualify for the 80DDB tax benefit, you must meet certain criteria. Firstly, the treatment must be for yourself, your spouse, or dependent children or parents. Secondly, you must submit a medical certificate issued by a specialist doctor from a government hospital or any other registered private hospital. The certificate should include details such as the patient’s name, age, address, and the nature of the disease.
Amount of Deduction
The deduction amount varies according to different age categories. For individuals below 60 years of age, the maximum deduction is up to INR 40,000. This amount increases to INR 1,00,000 for senior citizens (above 60 years of age). If the treatment is for a super senior citizen (above 80 years of age), the limit is up to INR 1,00,000.
Examples of Specified Diseases
Listed below are a few examples of the specified diseases that qualify for the 80DDB tax benefit:
- Cancer
- Thalassemia
- Neurological diseases like dementia, dystonia and ataxia
- Acquired immunodeficiency syndrome (AIDS)
- Chronic renal failure
- Multiple Sclerosis
Documents Required for Claiming Deduction
When filing for tax returns, it is crucial to keep the following documents in hand:
- Medical certificate issued by a specialist doctor from a registered private/government hospital
- Receipts or bills for the expenses incurred during the treatment of the specified disease
- Prescription for the treatment of the specified disease
Conclusion
The 80DDB tax benefit is a lifesaver for those who need financial assistance for the treatment of specified diseases. Ensuring that you meet the eligibility criteria and keeping the necessary documents handy while claiming the deduction can go a long way in reducing the financial burden that comes with medical treatment. It’s essential to stay informed about any new updates in the tax laws and healthcare policies to make the most of the benefits available.
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