Updated on: Apr 2nd, 2024
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7 min read
Taxpayers who have dependents with specified diseases write to us inquiring about how to get a certificate for claiming deduction under section 80DDB on their income tax return. This has been discussed below:
Deduction under section 80DDB is allowed for medical treatment of a dependant who is suffering from a specified disease (listed in the table below).
(Refer Rule 11DD of the Income-tax Rules)
The certificate should include the following details to ensure completeness:
Serial No | Disease | Certificate to be taken from |
(i) | Neurological Diseases where the disability level has been certified to be of 40% and above — (a) Dementia (b) Dystonia Musculorum Deformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h)Parkinsons Disease | Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India |
(ii) | Malignant Cancers | Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India |
(iii) | Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | any specialist having a post-graduate degree in General or Internal Medicine, or any equivalent degree which is recognised by the Medical Council of India |
(iv) | Chronic Renal failure | a Nephrologist having a Doctorate of Medicine(D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae(M.Ch.) degree in Urology or any equivalent degree, which is recognised by the Medical Council of India |
(v) | Hematological disorders (i) Hemophilia (i) Hemophilia (ii) Thalassaemia | a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognised by the Medical Council of India |
For example, if an individual has incurred an expenditure of Rs. 80,000 in respect of a specified disease for which he has 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 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 the 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.
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.
Taxpayers can claim a deduction under section 80DDB for medical treatment of dependents with specified diseases. The certificate can be obtained from specialists, and reimbursement received affects the deduction amount. Different maximum deduction limits apply for regular, senior citizen, and very senior citizen taxpayers. It's crucial to get the eligible certificate and be mindful of reimbursements while claiming the deduction.