In this article we discuss about the concept of deduction u/s 80DDB of the Income Tax Act, 1961 which is available to Individual or HUF for the medical treatment of specified ailments.
Who is eligible to this deduction:-
- Indvidiual himself or a dependent of an individual or any member of a HUF (Hindu Undivided Family), who is a resident of India, during the previous year, is eligible for deduction.
- The amount must be actually paid for medical treatment of such disease or ailment as may be specified in the rule 11DD made in this behalf by the Board.
- In the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them.
- In the case of a Hindu undivided family, a member of the Hindu undivided family.
Dependent wholly or mainly on such individual or Hindu undivided family for his support and maintenance.
Limit of Deduction:-
- The amount of deduction can be allowed under this section is whichever less of the following:
- Amount actually paid for medical treatment or
- Rs. 40,000/-.
- In case of the assessee or his dependent or any member of a HUF of the assessee and who is senior citizen then maximum deduction can be allowed of Rs. 1,00,000.
- Deduction under this section shall be reduced by the amount received, if any, under an insurance from insurer, or reimbursed by an employer, for the medical treatment of the person.
- To claim deduction under this section it is required to obtain the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed.
For the purpose of section 80DDB, the following shall be eligible diseases or ailments:
- Neurological Diseases where the disability level has been certified of 40% and above-
- Dystonia Musculorum Deformans
- Motor Neuron Neuron Disease
- Parkinsons Disease
- Malignant Cancers
- Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
- Chronic Renal Failure
- Hematological disorders-