Section 80DDB of the income tax act defines tax saving provisions for individuals that helps them in covering the expenses incurred by them on the treatment of certain specified diseases or ailments.
Eligibility Criteria for Deduction under Section 80DDB
- Under section 80DDB, tax deduction is available to all resident individuals as well as HUF’s.
- Tax benefits under this section are not available to NRI’s.
- In case the claimant is an individual, he can claim tax deduction on the expenses incurred by him on his treatment or treatment of the dependent.
- In case the claimant is an HUF, the owner (Karta) of HUF can claim deduction on the expenses incurred in the treatment of any member of HUF.
Who qualifies as a dependent?
Dependents are divided into 2 categories –
Deduction limit under Section 80DDB for AY 2019-20
The deduction limit is based on 2 factors –
- Actual amount of expense incurred
- Age of the sick person
In the union budget 2019, the previous deduction limit for senior citizen i.e. Rs.60000 and super senior citizen i.e. Rs. 80000 is increased to Rs. 100000 for both senior & super senior citizens for AY 2019-20. The new deduction limit for AY 2019-20 are specified in the table below –
|S.no||Sick person's age||Deduction amount|
|1||Up to 60 years of age||Actual amount spent or Rs.40000 (whichever is less)|
|2||Senior citizens (60-80 years of age)||Actual amount spent or Rs.100000 (whichever is less)|
|3||Super senior citizens (Above 80 years of age)||Actual amount spent or Rs.100000 (whichever is less)|
Specified Diseases Covered Under Section 80DDB of Income Tax Act
|S.no.||Disease||Who issues the certificate?|
Neurological diseases are the diseases where the disability level of an individual is 40% and above -
|Certificate is issued by a Neurologist holding a degree in neurology or any equivalent degree, doctorate of medicine (D.M.) recognized by Medical Council of India.|
|2)||Full blown acquired immuno-deficiency syndrome (AIDS)||Certificate is issued by any specialist holding a post-graduate degree in general or internal medicine or any equivalent degree recognized by the medical council of India.|
|3)||Maligant cancers||Certificate is issued by oncologist holding a doctorate of medicine (D.M.) degree in oncology or any equivalent degree recognized by the Medical council of India.|
|Certificate is issued by a specialist having a doctorate of medicine (D.M.) degree in hematology or any equivalent degree recognized by medical council of India|
|5)||Chronic Renal failure||Certificate is issued by a nephrologist holding a doctorate of medicine (D.M.) degree in nephrology or a urologist holding master of Chirurgiae (M.ch.) degree in urology or any equivalent degree recognized by the medical council of India.|
What should be mentioned on the prescription?
The prescription should be taken from a well-qualified doctor having specialization in that particular field. It should be submitted in form 10-I. It is important to mention the following things on the prescription –
- Name of the patient
- Age of the patient
- Disease name
- Name, address & registration number of the specialist doctor issuing the prescription.
- In case the individual is taking treatment in the government hospital, name & address of the government hospital should be mentioned on the prescription.
- The form should be signed by the doctor/head of government hospital.
Note – Prescription is submitted by the individual to the income tax department along with the income tax return.
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