Chapter VIA of the Income Tax Act covered certain deductions that are allowed from the Gross Total Income of the assessee. This chapter also covered deduction under section 80DDB, which allows taxpayers to claim a deduction for medical treatment of certain specified ailments for self and/or dependent. Here in this post, we will discuss Section 80DDB of Income Tax Act for AY 2021-22.
Section 80DDB of Income Tax Act
Deduction under section 80DDB is allowed for expenses incurred for medical treatment of specified diseases or aliments (check the list below). This section allowed a deduction to resident individuals and HUF only.
Deduction limit, disease type, documents required for claiming deduction under section 80DDB of Income Tax Act for AY 2021-22 is covered here in this post.
What is the deduction limit under section 80DDB of Income Tax Act for AY 2021-22
The amount that can be claimed as deduction u/s 80DDB are based on the age of the person for whom the medical expense or treatment is incurred-
a) Where the medical treatment expenses are incurred for an individual or his dependant or a member of HUF, the deduction limit is actual expenses incurred or Rs. 40,000 whichever is lower.
b) Where the medical treatment expenses are incurred for an individual or his dependant or a member of HUF, being a senior citizen*, the deduction limit is actual expenses incurred or Rs. 1,00,000 whichever is lower.
(*) Here Senior Citizen include Super Senior Citizen.
|Assessee (Age)||Amount of Deduction|
|Age less than 60 years||Rs. 40,000 or actual expense whichever is low|
|Senior Citizen- Age 60 years and above||Rs. 1,00,000 or actual expense whichever is low|
|Super Senior Citizen- Age 80 years and above||Rs. 1,00,00 or actual expense whichever is low|
Who are eligible to claim deduction under section 80DDB?
Deduction u/s 80DDB can be claimed by Individuals and HUF only, provided that the assessee should be resident in India during the relevant previous year.
Deduction under section 80DDB can not be claimed by non-resident Indian and any corporate or any other entity.
What type of Diseases or Medical ailments are covered u/s 80DDB?
According to the Income Tax Act, the following are the eligible diseases or aliments that are taken into considerations for claiming deduction under section 80DDB of Income Tax Act for AY 2021-22
1) Neurological diseases, where the disability level is certified to be of 40% or more-
- Dystonia Musculorum Deformans (DMD)
- Motor Neuron Disease
- Parkinson’s Disease
2) Malignant Cancers
3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
4) Chronic Renal Failure
5) Hematological Disorders-
Accordingly, section 80DDB covers medical treatment for major illnesses and diseases and would not cover medical expenses which are common in nature.
For claiming deduction of common medical expenditure, you can claim it under section 80D of the Income Tax Act.
List of Documents required for claiming deduction under section 80DDB
For claiming deduction u/s 80DDB, the assessee has to provide proof of the need for treatment and proof that treatment has been actually undertaken. Accordingly, to claim deduction here, it is mandatory to obtain a certificate from the prescribed authority, from whom the medical treatment has been availed.
As per rule 11DD(amended), now the prescription documents can be obtained from the following specialist.
|Neurological diseases||Neurologist having a Doctorate of Medicine in Neurology or have any equivalent degree.|
|Malignant Cancers||Oncologist having a Doctorate of Medicine in Oncology or have any equivalent degree.|
|Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)||Any specialist having post graduate degree in general or internal medicine or have any equivalent degree.|
|Chronic Renal Failure||Nephrologist having a Doctorate of Medicine in Nephrology or a Urologist having a Master of Chirurgiae degree in Urology or have any equivalent degree.|
|Hematological Disorders||A specialist having a Doctorate of Medicine in Hematology or have any equivalent degree.|
Some Important Points for claiming deduction under section 80DDB.
The following points are needed to remember for claiming deduction under Section 80DDB of Income Tax Act for AY 2021-22.
⚫ Where in respect of any diseases or ailments, the patient is receiving the treatment in a Government hospital, the prescription may be issued by any specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognized by the Medical Council of India.
⚫ For claiming deduction u/s 80DDB, the prescription of the specialist should cover the name and age of the patient, name of the disease or ailment along with the name, address, registration number, and the qualification of the specialist issuing the prescription.
⚫ The amount of deduction that can be claimed u/s 80DDB shall be adjusted by the amount of insurance premium received against the health insurance policy (if any).
⚫ For the purpose of section 80DDB, dependents includes- individual, the spouse, children, parents, brothers, and sisters of the individual and any member of HUF (in case of HUF claiming deduction)
What diseases are covered under 80ddb?
Section 80DDB covered Neurological diseases, Malignant Cancers, Full Blown Acquired Immuno-Deficiency Syndrome (AIDS), Chronic Renal Failure and Hematological Disorders.
What is the limit of 80ddb?
Deduction limit u/s 80ddb is Rs. 40,000 or actual expenses incurred which ever is lower and for senior citizen the limit is Rs. 1,00,000 or actual expenses incurred which ever is lower.
Can both 80d and 80ddb be claimed?
Yes, section 80ddb can be claimed for specified diseases and 80d can be claimed for medical insurance premium or any normal medical expenditure paid during the year.
Is cancer covered under section 80ddb?
Rule 11DD specified certain diseases for claiming deduction u/s 80ddb which include Neurological diseases, Malignant Cancers, Full Blown Acquired Immuno-Deficiency Syndrome (AIDS), Chronic Renal Failure and Hematological Disorders.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)