June 25, 2024


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Section 80DDB Income Tax Deduction For The Specified Diseases

What is section 80DDB and who is eligible for tax exemption under it | Tax  Hacks

The Income Tax Act of 1961’s Section 80DDB permits taxpayers to deduct taxes for the cost of treating a few specific pre-existing diseases. These taxpayers consist of individuals and Hindu Undivided Families, as defined by Section 80DDB (HUFs).

Make sure you have adequate coverage under a reputed health insurance company.

What is the maximum amount that can be written off under Section 80DDB? 

As of 2018-19 (AY 2019-20 and after), the following formula can be used to determine deductions under Section 80DDB: 

The age of the person who receives medical treatmentAmount of Deduction (Rs.)
Senior Citizens aged 60 years and above₹ 1,00,000 or actual expenses, whichever is less
Those who are less than 60 years of age₹ 40,000 or actual expenses, whichever is less

Important Points: 

  • Only costs incurred in the prior year are eligible for deduction. 
  • Furthermore, rather than using the claimant’s or assessee’s age for calculating the deduction amount, the age of the patient is taken into account. 
  • No other deduction under Chapter VI A may be claimed in addition to the one under Section 80DDB.

Whose medical costs may be claimed under IRC Section 80DDB? 

Every dependant or taxpayer who has one of the conditions below qualifies for a deduction under Section 80DDB. **

  • Individual taxpayers who receive treatment are known as “assessees.” 
  • People or hufs may make a claim for it. 
  • When a dependent’s care has been paid for by the taxpayer 
  • A spouse, kid, parent, or sibling is a dependant. 
  • Where a dependant is covered and also paid by an insurer or reimbursed by an employer, such payments must be subtracted from the deductible. 

What conditions and illnesses are covered by Section 80DDB? 

The Income Tax Department has published a list of pre-existing diseases 

that qualify for a tax deduction under section 80DDB. 

  • Neurological conditions for which an impairment level of at least 40% has been certified 
  • Dementia 
  • Dystonia Muscle Dystrophy 
  • Alzheimer’s disease 
  • Ataxia 
  • Chorea\shemiballismus 
  • Aphasia 
  • Parkinson’s illness 
  • Invasive cancers 
  • Total Blown Immunodeficiency Syndrome, acquired (AIDS)  
  • Chronic kidney disease 
  • Hematological conditions 
  • Hemophilia 
  • Thalassaemia 

How can I obtain this certificate, and from whom?

  • The certificate can be issued by a specialist, as seen in the table below. 
  • Patients receiving care in a private hospital are not required to obtain a certificate from a public hospital. 
  • A expert working full-time at the government hospital where the patient receives care must issue the certificate. Experts in these domains must hold a postgraduate degree in general medicine or a comparable credential that has been approved by the Medical Council of India (MCI). 
  • There’s no longer a need for the Form 10-I certificate. 
  • The certificate must contain the following details: 
  • The patient’s name 
  • Patient’s age 
  • Name of the illness or condition 
  • Information about the prescription’s author, including their name, address, registration number, and credentials 
  • The certificate should also include the name and address of the hospital if the patient is getting care in a government facility.

Choose the best coverage under pre-existing disease health insurance.

Health insurance goes a long way in protecting you from unforeseen circumstances.

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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