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Deduction in Respect of Medical Treatment (Section 80DDB)

Written by: CHETNAA GOYAL Posted on: 20 February, 2023

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Section 80DDB
Deduction in Respect of Medical Treatment

Eligible assessee

This section provides deduction to an assessee, who is resident in India, being an individual and Hindu undivided family. The deduction is available to an individual for medical expenditure incurred on himself or a dependant. It is also available to a Hindu undivided family (HUF) for such expenditure incurred on any of its members.

Meaning of “Dependant”

S.No	Assessee	Dependant
1.	Individual	The spouse, children, parents, brother or sister of the individual or any of them, wholly or mainly dependant on such individual for his support and maintenance.
2.	HUF	A member of the HUF, wholly or mainly dependant on such HUF for his support and maintenance.

Payment qualifying for deduction

Any amount actually paid for the medical treatment of specified disease or ailment made in this behalf by the Board for himself or a dependant, in case the assessee is an individual or for any member of a HUF, in case the assessee is a HUF will qualify for deduction.

Quantum of deduction

The amount of deduction under this section shall be equal to the amount actually paid or Rs. 40,000 whichever is less, in respect of that previous year in which such amount was actually paid.

In case the amount is paid in respect of a senior citizen, i.e., a resident individual of the age of 60 years or more at any time during the relevant previous year, then the deduction would be the amount actually paid or Rs. 1,00,000 whichever is less.

The deduction under this section shall be reduced by the amount received, if any, under insurance from an insurer, or reimbursed by an employer, for the medical treatment of the assessee or the dependant.

The maximum limit of deduction under section 80DDB for the various categories of dependant are summarized hereunder

S.No	Dependant	Maximum limit (Rs)
1.	A senior citizen, being a resident individual	1,00,000
2.	Other than a senior citizen	40,000

What Kind of Medical Treatments are Allowed Under Section 80DDB

Deduction under section 80DDB is allowed for medical expenses incurred for medical treatment of specified diseases or ailments. The nature of diseases and ailments which are included for deduction under Section 80DDB are mentioned in Rule 11DD of Income Tax and the same are as follows :

Neurological Diseases as identified by a specialist ,where the level of disability has been certified to be of 40% and above and covers Dementia, Dystonia Musculorum Deformans, Chorea, Motor Neuron Disease, Ataxia, Aphasia, Parkinson’s Disease and Hemiballismus.
Malignant Cancer.
AIDS- Acquired Immuno-Deficiency Syndrome.
Chronic Renal failure.
Hematological disorders like Hemophilia or Thalassaemia.

Thus, the section intents to cover medical treatment for major illnesses and diseases and would not cover medical expenses which are more common in nature like a cataract or a C-section.

Documents Required

To claim deduction under section 80DDB, it is mandatory for the assessee to provide a proof of the need for treatment and a proof that the treatment has been actually undertaken. Therefore, it is compulsory to obtain a prescription for such treatments from a qualified doctor.

Earlier it was required to obtain such prescription from doctors of government hospital. However, the same has been relaxed with effect from AY 2016-17 and prescription can now be obtained from relevant specialist from private hospitals and not necessarily a doctor working with a government hospital. Rule 11DD now stands amended and the prescription can now be obtained as follows :

In case of neurological diseases, a prescription from a Neurologist having a Doctorate of Medicine in Neurology or any equivalent degree is required.
In case of Malignant Cancer, a prescription by an Oncologist having a Doctorate of Medicine in oncology or any equivalent degree is required.
In case of AIDS, a prescription by any specialist having post graduate degree in general or internal medicine or any equivalent degree is required.
In case of Chronic Renal failure, a prescription by a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nehprology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree is required.
In case of the last ailment Hematological disorders, a specialist having a Doctorate of Medicine degree in Hematology or any equivalent degree, is required.

Thus, prescription is required by a relevant specialist in the field of Medicine. It must be noted that all the degrees should be recognized by the Medical Council of India.

Where the treatment is undertaken in government hospital, the prescription can be obtained from any specialist working full time with the hospital and having a post graduate degree in general medicine.

The prescription which is to be submitted by the taxpayer should contain the details mentioned below.

Name of the patient
Age of the patient
Disease or ailment
Name, Address and registration number of the specialist doctor issuing the prescription,
Name and Address of the Government Hospital if the treatment has been undertaken in a Government Hospital etc

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CHETNAA GOYAL

Chetnaa Goyal one of the co-founder of TaxSmooth. An Qualified Chartered Accountant. More than 12 years of Experience in Direct Taxation. having own Taxation Practice in Delhi. Expertise in Income Tax Cases, Return filing, Tax Planning, Tax Advisory etc.