Section 80DDB of Income Tax Act: Deduction Limit, Diseases Covered, Claim Deduction & Certificate

Taxpayers who have dependents with specified diseases write to us inquiring about how to claim deduction on their income tax return. Section 80DDB permits a tax deduction for expenses related to the treatment of certain diseases for oneself, one's spouse, dependent children, dependent parents, and dependent siblings. The diseases eligible for this deduction are outlined in Rule 11DD of the income tax regulations.

This deduction comes with specific conditions and is limited to a maximum amount. Here are the important details about Section 80DDB.

Details of Deduction Allowed under section 80DDB

Deduction under section 80DDB is allowed for medical treatment of a dependant who is suffering from a specified disease (listed in the table below).

• Can be claimed by an Individual or HUF.
• Cannot be claimed by corporates or any other entity.
• Allowed only to Resident Indians.
• When taxpayer has spent money on treatment of the dependant.
• Dependant shall mean spouse, children, parents and siblings.
• In case the dependant is insured and some payment is also received from an insurer or reimbursed from an employer, such insurance or reimbursement received shall be subtracted from the deduction.

Amount Allowed as Deduction

For example, if an individual incurred an expenditure of Rs. 80,000 in FY 2024-25 for a specified disease for which he received a sum of Rs. 30,000 from an insurance company, he can claim only Rs.10,000 under the section (Rs.40,000 less the amount received by way of insurance, Rs.30,000). 

Further, in the case of a senior citizen, an individual can claim Rs.70,000 (Rs.1,00,000 - Rs.30,000) under the same circumstance stated above since the prescribed limit for senior citizens under the section is Rs.1,00,000.

Let us look at another example, if a taxpayer has incurred an expenditure of Rs.80,000 in FY 2024-25 in medical treatment & he has received Rs.60,000 from an insurer, then he will not be eligible to claim the deduction since the insurance amount exceeds the threshold limit of Rs.40,000.

Similarly, if he is a senior citizen, he will be eligible for a deduction of Rs. 20,000 (Rs.80,000- Rs.60,000) only in such a case.

Things to Remember while Claiming Deduction under Section 80DDB

• For individual assesses, dependents include the spouse, children, parents, brothers, and sisters of the individual.
•  In the case of a Hindu undivided family (HUF), a dependant is a member of the family.
• To claim the deduction, it is mandatory to obtain a certificate. The certificate can be obtained from various specialists depending on the type of disease, such as a neurologist, oncologist, urologist, haematologist, immunologist, or any other relevant specialist.
• If the assessee receives reimbursement for the medical expenses from insurance or their employer, they cannot claim the entire amount as a deduction. The eligible deduction amount will be the deduction available minus the reimbursement amount. This is to ensure that the assessee does not benefit from both reimbursements and a deduction on the same amount.

To summarise, an individual or an HUF can avail deduction on the medical expenses incurred by them on the prescribed diseases up to Rs.40,000 or Rs.1,00,000 as the case may be.

How to Obtain the Certificate for the Disease for Section 80DDB Deduction?

• The certificate can be taken from a Specialist as per the table below.
• Patients getting treated in a private hospital are not required to take the certificate from a government hospital.
• Patients receiving treatment in a government hospital have to take the certificate from any specialist working full-time in that hospital. Such specialist must have a postgraduate degree in General Medicine or an equivalent degree, which is recognized by the Medical Council of India (MCI).
• A certificate in Form 10-I is no longer required.
• The certificate must have the following - 
  • name and age of the patient
  • name of the disease or ailment
  • name, address, registration number and the qualification of the specialist issuing the prescription
  • If the patient is receiving the treatment in a Government hospital, it should also have the name and address of the Government hospital.

What Should be Mentioned in the Certificate? 

The certificate should include the following details to ensure completeness - 

• Patient's name and age
• Name of the disease or ailment
• Name, address, and registration number of the specialist issuing the certificate
• Qualifications of the specialist
• If the patient is receiving treatment in a Government hospital, the certificate should also include the hospital's name and address.

List of Diseases and the Specialists who can give Certificate under Section 80DDB

Related Articles

• Deductions under section 80 to 80C
• Section 80U
• Section 80G and 80GGA
• Section 80TTA
• Section 80TTB