Deduction in Respect of Medical Treatment – Section 80DDB: Section 80 DDB covered in Chapter VI-A of the IT Act 1961-2020 allows for deductions for medical treatment, among other things.
- What diseases are recognized by this special provision?
- Who is eligible to receive the deduction under Section 80DDB?
- What is the sum of the deduction under Section 80DDB?
- Neurological ailments with a disability level of 40% or above are certified by specialized physicians, including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, etc. Hemiballismus, Aphasia, and Parkinson’s Disease.
- Malignant cancers;
- Acquired Immunodeficiency Syndrome (AIDS) in its entirety;
- Chronic Renal Dysfunction;
- Haematological diseases such as Hemophilia and Thalassaemia.
Individuals and HUFs are the only entities who can legitimately claim a deduction under Section 80DDB. The provision does not extend to non-residents.
Additionally, the deduction may only be requested by the individual who bore the expenditures.
Medical costs, on the other hand, can be paid for the healthcare and other medical expenses of the following individuals:
- Individuals: In the context of individual medical expenses might well be spent for the taxpayer or any of his dependents’ medical care. In this article, the term “dependents” specifically refers to the individual’s spouse, kids, parents, siblings.
- Hindu Undivided Family (HUF): In the context of a HUF, medical expenses made for medical treatment of any former member of the HUF can be taken as a deduction.
The deduction amount is characterized by two parameters: the patient’s age and the actual amount of spending.
The amount is fixed to the lesser of the following:
- The actual cost spent for the treatment or
- Rs. 40,000 /– (in the case of a normal citizen), whichever is smaller.
If the individual is a senior citizen, the highest limit of deduction is Rs.1 lakh.