Healthcare is expensive, and when it comes to serious illnesses, costs can skyrocket. Thankfully, the Indian Income Tax Act recognizes this burden and provides some relief through Section 80DDB.
Whether it’s a family member battling cancer or a senior citizen undergoing treatment for neurological disorders, this section can help ease the financial pressure.
Let’s break it down and understand how Section 80DDB permits a tax deduction for expenses related to the treatment of certain diseases and who can claim it. "
What Is Section 80DDB?
Section 80DDB is a provision under the Income Tax Act that provides for a deduction to Individuals and HUFs for medical expenses incurred on specified diseases or ailments. This deduction is available regardless of whether the patient is insured or not.
In simpler terms, if you or a dependent are undergoing treatment for certain critical illnesses, you can claim a tax deduction on the amount spent—subject to limits and documentation.
Who Can Claim the Deduction?
The deduction under Section 80DDB covers deductions on expenses incurred while availing medical treatment for self or a dependent relative. Here’s who qualifies:
- Individual taxpayers for treatment of self, spouse, children, parents, or siblings
- HUFs for any member of the HUF undergoing treatment
The deduction is available only if the taxpayer is a resident of India.
Diseases Covered Under Section 80DDB
Section 80DDB permits a tax deduction for expenses related to the treatment of certain diseases, which are prescribed under Rule 11DD. Some of the major illnesses include:
- Neurological diseases (dementia, Parkinson’s, etc.) with 40% or more disability
- Cancer (malignant cancers)
- Chronic renal failure (kidney failure)
- Hematological disorders (hemophilia, thalassemia)
- Full-blown AIDS
💡 Is heart disease covered under 80DDB?
No, heart disease is not listed in the prescribed ailments for deduction under this section. However, one can explore insurance-related deductions under Section 80D.
For the full list, you can refer to the 80DDB deduction diseases list available online or consult your doctor and CA.
Deduction Limit Under Section 80DDB
The deduction limits vary depending on the age of the patient:
- For individuals below 60 years: ₹40,000
- For senior citizens (60 years): ₹1,00,000
- For super senior citizens (80 years): same ₹1,00,000
However, if you receive any reimbursement from your employer or an insurance company, that amount will be reduced from the total deduction claimed.
Documents Required to Claim Deduction
To avail of the deduction under Section 80DDB, you’ll need a prescription or certificate from a specialist doctor working in a government or private hospital.
Important points:
- Use Form 10I for 80DDB if asked during verification
- Include the certificate from private hospital if treatment is taken there
- Keep records of bills, prescriptions, and reports for future reference
💡 Pro Tip: Make sure the certificate clearly mentions the disease and the doctor’s credentials (specialist and hospital affiliation).
How to Claim Section 80DDB Deduction in ITR
Here’s a step-by-step guide:
- Collect the medical certificate from your doctor
- Check if your disease is listed in 80DDB deduction diseases list
- Calculate the actual expenses and subtract any reimbursement
- Log into the Income Tax portal and file your return
- Under the ‘Deductions’ section, claim under 80DDB
- Upload documents if required or retain them for future verification
80DD vs. 80DDB – What’s the Difference?
Many taxpayers get confused between Section 80DD and 80DDB.
- Section 80DD: For expenses related to maintenance (including treatment) of a disabled dependent
- Section 80DDB: For medical treatment of specified diseases
In short, 80DD is related to disability, while 80DDB is related to specific diseases. Both require certification and documentation but serve different purposes.
Final Thoughts
Section 80DDB is a critical tax-saving tool for families battling serious illnesses. It covers deductions on expenses incurred while availing medical treatment for a list of specified diseases and provides for a deduction to Individuals and HUFs.
To recap:
- Section 80DDB permits a tax deduction for expenses related to the treatment of certain diseases
- The section covers deductions on expenses incurred while availing medical treatment
- Provides for a deduction to Individuals and HUFs, with limits of ₹40,000 to ₹1,00,000
- Diseases must be on the deduction diseases list under 80DDB
- Requires a certificate from a specialist in a government or private hospital
Make sure to consult a CA and keep all documentation ready while filing your taxes.
👉 Need help claiming deductions or understanding what diseases qualify under Section 80DDB?
Visit www.callmyca.com and let a tax expert guide you through the process.
