Section 80DDB of the Income Tax Act allows resident individuals and Hindu Undivided Families (HUFs) to claim a deduction on medical expenses spent for the treatment of specified serious diseases. The treatment can be for themselves or dependents (spouse, children, parents, siblings) who rely financially on the taxpayer.
Who Can Claim?
- Eligible Assessees: Resident individuals and HUFs only—not companies, firms, or non-residents .
- Eligible Patients: The taxpayer themself or a dependent family member, provided the dependent is financially reliant on the taxpayer.
Which Diseases Qualify?
Only diseases listed under Rule 11DD of the Income Tax Rules qualify. This includes:
- Neurological disorders with ≥40% disability (e.g., dementia, Parkinson’s, motor neuron disease)
- Malignant cancers
- AIDS
- Chronic renal failure
- Hematological disorders (e.g., hemophilia, thalassemia).
Deduction Amounts
Claim the lower of actual medical expenses or age-based limits:
- Up to ₹40,000 if patient is under 60
- Up to ₹1,00,000 if patient is 60 or above (includes super senior citizens)
Insurance Reimbursement
If any amount is reimbursed by insurance or an employer, it must be subtracted from the deductible amount.
Required Documents
- Specialist prescription/certificate (as per type of disease) stating:
- Patient’s name, age, disease
- Doctor’s registration, qualification, hospital details
- Medical bills and receipts
- Proof of reimbursement, if any was received
(Note: Form 10-I is no longer mandatory; specialist’s prescription suffices.)
How to Claim Deduction
- Keep originals of certificates and bills.
- In your Income Tax Return (ITR), under Chapter VI-A, enter the amount under Section 80DDB.
- Maintain documents safely; submission is only required if the Assessing Officer asks for them.
Quick Summary Table
| Patient’s Age | Deduction Limit (₹) | Conditions |
|---|---|---|
| < 60 years | ₹40,000 | Actual expenses or ₹40k, whichever is less |
| ≥ 60 years | ₹1,00,000 | Actual expenses or ₹1 L, whichever is less |
| Adjustments | N/A | Minus any insurance/employer reimbursement |
Why It Matters
- Helps reduce taxable income significantly when facing high medical costs.
- Offers financial relief for serious illnesses without being offsetting insurance.
- Encourages taxpayers to seek prompt specialist-based diagnosis/treatment.
