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

Section 80DDB is beneficial in taxation because it directly reduces your taxable income by allowing you to claim medical expenses for certain critical illnesses. Since these treatments are often costly, the deduction helps ease the financial burden and ensures you pay tax only on your reduced income after claiming expenses.

Key Highlights

• Deductions can be claimed by the taxpayer and their dependents, including spouses, children, parents, and siblings.
• Deductions are allowed after adjusting reimbursements from insurance or an employer. Only out-of-pocket expenses are eligible.
• A deduction can be claimed only for an eligible disease as specified by the CBDT.

What is section 80DDB?

Section 80DDB provides tax relief to individuals and HUFs by allowing a deduction for medical expenses incurred on specified diseases that are considered serious. This helps reduce the overall taxable income and eases the financial burden of high medical costs. The deduction can be up to Rs. 40,000, and in the case of senior citizens, it can be up to Rs. 1,00,000. By claiming this benefit, taxpayers can lower their income tax liability while managing healthcare expenses for themselves or their dependents.

Deduction under section 80DDB is allowed for medical treatment of a dependent 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 dependent.
• Dependent shall mean spouse, children, parents and siblings.
• In case the dependent 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 U/s 80DDB

Under Section 80DDB, any amount actually paid for the medical treatment of specified diseases is eligible for deduction as prescribed by the CBDT. The deduction limits are given in the table below:

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