Understanding the Eligibility Criteria for 80ddb Disease Tax Deduction
Medical treatments are undoubtedly expensive and can be an out-of-pocket expenditure for many individuals, especially those with chronic illnesses such as Parkinson’s, renal failure, and malignant cancers. However, to alleviate the financial burden on taxpayers dealing with these ailments, the Indian government introduced the 80ddb deductions under the Income Tax Act of 1961.
The 80ddb tax deduction is specifically designed to provide relief to individuals with different disabilities, diseases or ailments and to help them cope with the financial strain of ongoing medical treatments, drugs, and other medical expenses. However, it’s essential to understand the eligibility criteria for this tax deduction to avail of its benefits.
Eligibility Criteria for 80ddb tax deduction
The 80ddb eligibility criteria are quite stringent and, as such, restricting the tax waiver limit. Therefore, claiming a tax deduction under 80ddb requires individuals to satisfy certain criteria. Let’s take a look at these criteria below:
1. Individuals should be taxpayers having income from salaries, pension, or other sources.
2. The benefit is available to both, Resident Individuals and Hindu Undivided Families (HUFs).
3. Individuals must be residents of India.
4. Taxpayers must have spent money for the treatment of the specified ailment. The relevant list of diseases is available in Section 11DD read with Rule 11DDA of Income Tax Act 1961.
5. Medical expenditure must have been incurred within India.
6. Individuals need to furnish Form 10I: Medical Certificate with the income tax returns in the form of prescribed documents.
7. The deduction amount can vary from INR 40,000 to INR 80,000 depending on the age of individuals, ailments, and expenses incurred.
Understanding the prescribed diseases for 80ddb tax deduction
There are specific ailments classified in the Act, for which taxpayers can claim the tax deduction under 80ddb. These diseases are mostly chronic and require prolonged medical treatment.
Below is a list of ailments specified in the Income Tax Act 1961 for 80ddb tax exemption:
1. Malignant Cancer
2. Full-blown Acquired Immune Deficiency Syndrome (AIDS)
3. Chronic Kidney Failure
4. Hemophilia
5. Parkinson’s disease
6. Neurological ailments like Dementia
7. Thalassemia
8. Chronic Obstructive Pulmonary Disease (COPD)
9. Multiple Sclerosis
10. Blindness
11. Leprosy-Cured
12. Autism
Conclusion
The 80ddb tax deduction is essential for taxpayers who have to undergo prolonged medical treatment, especially those dealing with chronic ailments. However, it’s crucial to understand the eligibility criteria and prescribed diseases to claim the tax waiver. This deduction is a part of the government’s attempt to provide financial relief for the taxpayers which undergoes medical processes. Proper use of 80ddb deduction ensures that the taxpayer will receive the maximum aid for all their expenses. Understanding these criteria eliminates chances of rejection of applications and thereby saves time and money, thus making medical treatment accessible for individuals who require support.
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