Section 80DDB - Diseases Covered, Ailments & Deductions

Deduction made under Section 80DDB is allowed for medical treatment of a dependent who is suffering from a particular disease which are mentioned below:

1. It can be claimed by an individual or HUF.
2. He or she should be an Indian resident.
3. Dependents include spouse, parents, children, and siblings.
4. If a taxpayer has spent money on dependent’s treatment.

Who can Claim the Deductions Under Section 80DDB?

Tax deductions under Section 80DDB is only applicable to the following:

1. All individuals
2. Hindu Undivided Families (HUFs)

Tax deductions can be claimed provided that the entity concerned is residing within India for that tax year and the expenditure relating to medical treatment must be either for the individual or HUF or a family member such as a spouse, parent or sibling that is dependent on them.

Medical Treatments Allowed Under Section 80DDB

Section 80DDB specifies the following medical ailments and diseases for which tax deductions can be availed:

1. Diseases that are neurological in nature such as:
   1. Ataxia
   2. Dementia
   3. Aphasia
   4. Dystonia Musculo rum Deformans
   5. Hemiballismus
   6. Parkinson's Disease
   7. Chorea
   8. Motor Neuron Disease
2. Chronic Renal Failure
3. Malignant Cancers
4. Hematological Disorders such as:
   1. Thalassemia
   2. Hemophilia
5. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

Documents Needed to Avail Tax Deduction under Section 80DDB

Prescription is a must to avail tax deductions under Section 80DDB. The following are the prescriptions needed by the beneficiaries for specific diseases:

List of Diseases and the Specialists Who Can Provide Certificate Under Section 80DDB

What are the Details to be Included in the Prescription for Section 80DDB

The following details are to be included in the certificate as per the income tax department:

1. Name of the Patient
2. Age of the Patient
3. Name of the ailment or the disease in question
4. Details of the specialist such as:
   1. Name
   2. Address
   3. Qualification
   4. Registration Number
5. If treatment of the patient is taking place at a government owned hospital, then the name of the hospital as well as its address will have to be mentioned in the certificate

What is the Maximum Deduction Allowed under Section 80DDB?

Deductions under Section 80DDB can be calculated as follows:

Key Notes:

1. Only expenses incurred during the previous year are eligible for a deduction.

1. The age of the person receiving medical treatment is used to determine the deduction amount, not the age of the assessee or the claimant.

1. No other deduction under Chapter VI A can be claimed in addition to the deduction under Section 80DDB.

Who can Claim the Deductions Under Section 80DDB?

1. Individual taxpayers or 'assessees' who undergo treatment can claim the deduction.

1. The deduction under Section 80DDB can be claimed by individuals or Hindu Undivided Families (HUFs).

1. It is available to resident Indians.

1. The taxpayer can claim the deduction if they have paid for the treatment of a dependent.

1. A dependent includes a spouse, child, parent, or sibling.

1. If a dependent is insured and the treatment expenses are paid by an insurer or reimbursed by an employer, such payments must be deducted from the amount eligible for deduction.

How to Adjust the Deduction Amount with Any Reimbursement?

A deduction under Section 80DDB can be claimed by adjusting it against payments received from an insurer or an employer's reimbursement for medical expenses.

Example 1:

If a taxpayer incurs expenses of Rs.60,000 on the treatment of a specified disease or ailment, they can initially claim a deduction of Rs.40,000 under Section 80DDB.

However, if the taxpayer receives Rs.30,000 from an insurance company for these expenses, the amount eligible for deduction will be reduced accordingly. Thus, under Section 80DDB, the taxpayer can only claim Rs.10,000 (Rs.40,000 minus Rs.30,000 received from the insurance company).

Example 2:

If the insurance company pays Rs.50,000 towards the medical expenses of Rs.60,000, which exceeds the maximum limit of Rs.40,000 under Section 80DDB, the taxpayer cannot claim any deduction under this section.

If the person receiving the treatment is a senior citizen, they are eligible for a higher deduction. For instance, the deduction allowed under Section 80DDB for senior citizens is Rs.1 lakh, which will be reduced by the amount received from the insurance company. Therefore, if Rs.50,000 is received from the insurer, the taxpayer can claim a deduction of Rs.50,000 (Rs1 lakh minus Rs.50,000).

How to Fill Section 80DDB Form?

The following are steps to fill the Section 80DDB Form:

Step 1: Enter the name of the applicant

Step 2: Enter father’s name and address of the applicant

Step 3: Enter the name and address of the person on the applicant is dependent on

Step 4: Add the relationship of the applicant with the person

Step 5: Fill the disease name (Check Rule 11DD)

Step 6: Mention the level of disability

Step 7: Mention the name and address of the government hospital

Step 8: Enter the name, address, qualification, and registration number of the doctor

Step 9: Sign the form and fill verification section stating that information provided are correct

Extent of Deduction That Can Be Claimed Under Section 80DDB

Deductions totaling to the following amounts can be claimed under Section 80DDB according to the following assessment years:

On 23 July 2024, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25. This budget maintains the existing income tax slabs and does not introduce changes in Section 80DDB.

Changes in Section 80DDB from FY 2018-19 (AY 2019-20) Onwards

1. For normal citizens: Rs.40,000 or the amount paid to the medical institution (whichever is lower) 
2. For senior citizens and super senior citizens: Rs.1 lakh or the amount paid to the medical institution (whichever is lower) 

Section 80DDB Updates for FY 2017-18 (AY 2018-19)

1. The actual amount paid for medical treatment or Rs 40,000, whichever is lower
2. For senior citizens between the ages of 60 and 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower
3. For senior citizens above the age of 80, the actual amount paid for medical treatment or Rs 80,000, whichever is lower

Section 80DDB Provisions for FY 2015-16 (AY 2016-17 Onwards)

1. The actual amount paid for medical treatment or Rs 40,000, whichever is lower
2. For senior citizens between the ages of 60 and 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower
3. For senior citizens above the age of 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower

How to Obtain the Certificate for the Disease?

In order for an individual to be eligible for tax deduction under Section 80DDB, he or she must acquire a certificate of the disease. The income tax department has made it easier to acquire this particular certificate by implementing the following changes:

1. For those patients availing of medical treatment at a privately owned hospital
   1. The certificate of the disease can be acquired from the same hospital
   2. The certificate need not be acquired from a government owned hospital
   3. It is mandatory that the certificate is acquired from a specialist. The specialist must possess a degree in his or her field of specialisation that is validated by the Medical Council of India
2. For those patients availing of medical treatment at a government owned hospital
   1. The certificate must be acquired via a specialist who is employed on a full-time basis at the hospital
   2. It is mandatory for the specialist in question to possess a general post-graduate degree or an internal medicine degree or similar, which is validated by the Medical Council of India
   3. The certificate of the disease in Form 101 will not be necessary

Section 80DDB Finance Act 2015 Amendment

As per the Finance Act 2015, Section 80DDB was amended in order for people suffering from medical ailments to claim tax deductions in a simpler and more convenient manner. According to the amendment, all an assessee has to do to claim deductions is to provide a certificate, which he or she has acquired from a doctor who has specialized in that particular field of treatment for which the assessee has sought treatment for.

The doctor could either be employed at a government run hospital or a privately owned hospital. Before the amendment, the taxpayer in question had to mandatorily provide a certificate acquired from a specialist doctor who was employed in a government run hospital.