Income tax laws in India provide various avenues for individuals to save on taxes by offering deductions for specified expenses. Section 80DDB is one such provision that allows taxpayers to claim deductions for expenses incurred on the treatment of certain specified diseases for themselves or their dependents. The diseases eligible for deduction under this section are listed in Rule 11DD of the Income Tax Regulations. In this article, we will delve into the details of Section 80DDB, covering the diseases covered, the process of claiming deductions, the deduction limits, and relevant documentation.
Key takeaways of Section 80DDB
Section 80DDB allows tax deduction on medical expenses for specific diseases, either for yourself or dependent family members.
The maximum deduction allowed is:
Up to Rs. 40,000 for individuals below 60 years
Up to Rs. 1,00,000 for senior and super senior citizens
To claim the deduction, it is mandatory to have a medical certificate issued by a qualified specialist.
If your treatment expenses are partly or fully covered by health insurance or reimbursed by your employer, the reimbursed amount must be subtracted from your claim.
Hindu Undivided Families (HUFs) can also avail of this deduction for medical costs related to dependent family members.
What is Section 80DDB of Income Tax Act?
Section 80DDB is one of the deductions available under Section 80 of the Income Tax Act, aimed at easing the financial burden of serious illnesses. Individuals and HUFs can claim a deduction on expenses incurred for treating specific diseases listed under Rule 11D. These include illnesses such as cancer, AIDS, chronic kidney failure, Parkinson’s, and other neurological disorders. This section is different from Sections 80U and 80DD, as it focuses specifically on actual medical treatment costs rather than disability support or caregiving. You need to be a resident taxpayer in India to qualify for this deduction.
Who can claim a deduction under Section 80DDB of the Income Tax Act?
A deduction under Section 80DDB of the Act can be claimed by both individuals and Hindu Undivided Families (HUFs). However, there are specific eligibility criteria that individuals must meet to qualify for this deduction. Here are the key points:
Residential status: The deduction is available only to resident individuals and Hindu Undivided Families. Non-residents are not eligible to claim benefits under this section.
Treatment expenses for specified persons: The taxpayer can claim a deduction for the amount spent on the medical treatment of specified diseases for themselves or their dependants. Dependents include parents, spouses, children, siblings, or any other family members who are wholly or mainly dependent on the taxpayer.
Disease and disability criteria: The deduction is applicable for the treatment of specified diseases, and the level of disability must be 40% or more. The list of specified diseases is mentioned in Rule 11DD of the Income Tax Rules.
Prescription from a specialist doctor: To claim the deduction, the taxpayer needs to obtain a prescription from a specialist doctor specifying the details of the disease, the patient, and the disability level. The prescription should include the name and registration number of the specialist.
Actual amount spent or specified limit: The deduction is limited to the actual amount spent on the treatment or the specified limit, whichever is less. Taxpayers should retain the bills and receipts as proof of expenses.
Limit of deduction permitted under Section 80DDB
Financial year |
Individuals < 60 years |
Senior citizen |
Super senior citizen |
FY 2018-19 and onwards |
Rs 40,000 or the amount actually spent, whichever is lower. |
Rs 1,00,000 or the amount actually spent, whichever is lower. |
Rs 1,00,000 or the amount actually spent, whichever is lower. |
FY 2015-16 to FY 2017-18 |
Rs 40,000 or the amount actually spent, whichever is lower. |
Rs 60,000 or the amount actually spent, whichever is lower. |
Rs 80,000 or the amount actually spent, whichever is lower. |
FY 2014-15 |
Rs 40,000 or the amount actually spent, whichever is lower. |
Rs 60,000 or the amount actually spent, whichever is lower. |
Rs 60,000 or the amount actually spent, whichever is lower. |
Suppose an individual spent Rs 80,000 during FY 2024-25 on treating a specified illness and received Rs 30,000 from an insurance provider. In that case, he can claim only Rs 10,000 under the section (Rs 40,000 minus Rs 30,000 insurance payout).
Similarly, if a senior citizen faces the same situation, he can claim Rs 70,000 (Rs 1,00,000 minus Rs 30,000) as per the allowed limit for senior citizens under this section.
Taking another example, if a taxpayer pays Rs 80,000 in FY 2024-25 for medical expenses and gets Rs 60,000 reimbursed by an insurer, then he cannot claim any deduction because the insurance amount is higher than the Rs 40,000 limit.
However, if the taxpayer is a senior citizen, he can claim a deduction of Rs 20,000 (Rs 80,000 minus Rs 60,000) in this case.
Managing medical expenses for serious illnesses requires careful financial planning, and many families find themselves needing additional funds for treatments not fully covered by insurance. Bajaj Finserv offers a generous top-up loan of up to Rs. 1 crore without any end-use restriction. Check your eligibility for a home loan from Bajaj Finserv today. You may already be eligible, find out by entering your mobile number and OTP.
Things to remember while claiming deduction under Section 80DDB
For individual taxpayers, dependents include the spouse, children, parents, and siblings of the taxpayer. In the case of a Hindu undivided family (HUF), a dependent is any member of that family.
To claim this deduction, it is essential to have a certificate from a specialist doctor. The specialist may vary depending on the illness, such as a neurologist, oncologist, urologist, haematologist, immunologist, or any other appropriate expert.
If the taxpayer gets medical expense reimbursement from insurance or an employer, the deduction claimed will be the total eligible amount minus the reimbursed amount. This ensures that the taxpayer does not get a double benefit on the same expense.
To summarise, an individual or HUF can claim a deduction for medical expenses on specified diseases up to Rs. 40,000 or Rs. 1,00,000, depending on the case.
How to obtain the certificate for the disease for Section 80DDB deduction?
The certificate must be issued by a specialist.
Patients treated at private hospitals do not need to get the certificate from a government hospital.
Those receiving treatment in a government hospital must get the certificate from a full-time specialist at that hospital. The specialist should hold a postgraduate degree in General Medicine or an equivalent qualification recognised by the Medical Council of India (MCI).
What should be mentioned in the certificate?
To be valid, the certificate should include:
Patient’s name and age,
The disease or ailment diagnosed,
Name, address, registration number, and qualifications of the specialist issuing it,
Name and address of the hospital, if treatment is at a government hospital.
Required documents to avail tax deduction under Section 80DDB
Diseases |
Required Docs |
Chronic Renal Failure |
|
Full Blown Acquired Immuno Deficiency Syndrome (AIDS) |
|
Haemophilia, Hematological disorders, Thalassemia |
|
Malignant cancers |
|
Deductions under Section 80DDB of the Income Tax Act?
Deductions under Section 80DDB of the Income Tax Act are aimed at providing relief to taxpayers for the expenses incurred on the medical treatment of specified diseases. Here are the key aspects of deductions under Section 80DDB:
1. Eligible taxpayers:
Individuals: Resident individuals are eligible to claim deductions under Section 80DDB for themselves or their dependants.
Hindu Undivided Families (HUFs): HUFs can also claim deductions for the medical treatment of specified diseases incurred on behalf of their members.
2. Specified diseases:
Section 80DDB covers a list of specified diseases, including but not limited to:
Neurological diseases with a disability level of 40% or more
Malignant cancers
AIDS
Chronic renal failure
3. Disability criteria:
The specified diseases must be accompanied by a disability level of 40% or more, as certified by a specialist doctor.
4. Treatment expenses:
Taxpayers can claim deductions for the actual amount spent on the medical treatment of the specified diseases. This includes expenses on hospitalisation, medicines, diagnostic tests, and other related costs.
5. Prescription requirements:
Taxpayers need to obtain a prescription from a specialist doctor for claiming the deduction. The prescription should include details such as the patient's name, age, and address, the disease diagnosed, and the name and registration number of the specialist.
6. Actual amount spent or specified limit:
The deduction is limited to the actual amount spent on the treatment or the specified limit, whichever is less. Taxpayers should keep the bills and receipts as proof of expenses.
7. Forms for claiming deduction:
Taxpayers need to furnish the details of the deduction in their Income Tax Return. There is no separate form for claiming the deduction under Section 80DDB.
8. Tax benefits:
The amount claimed as a deduction under Section 80DDB is subtracted from the taxpayer's total income, thereby reducing the taxable income and resulting in a lower tax liability.
9. Compliance and documentation:
Taxpayers should ensure compliance with the eligibility criteria and maintain proper documentation, including the prescription and bills, as these may be required for verification by tax authorities.
What is the list of specified diseases under Section 80DDB?
The list of specified diseases under Section 80DDB of the Income Tax Act is provided in Rule 11DD of the Income Tax Rules. As of my knowledge the cut-off date in January 2022, the specified diseases for which a taxpayer can claim a deduction under Section 80DDB include:
Serial No. |
Disease |
Certificate to be taken from |
(i) |
Neurological Diseases where the disability level has been certified to be of 40% and above — |
Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology |
(ii) |
Malignant Cancers |
Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology |
(iii) |
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) |
any specialist having a post-graduate degree in General or Internal Medicine, |
(iv) |
Chronic Renal failure |
a Nephrologist having a Doctorate of Medicine(D.M.) degree in Nephrology |
(v) |
Hematological disorders |
a specialist having a Doctorate of Medicine (D.M.) degree in Hematology |
It is important to note that the list is not exhaustive, and other diseases may also be included based on the severity of disability and certification by a specialist doctor. Taxpayers should refer to Rule 11DD for the most updated and comprehensive list of specified diseases eligible for a deduction under Section 80DDB.
How much deduction is allowed under the Section 80DDB?
The deduction under Section 80DDB depends on the patient’s age and the actual medical expenses incurred. Here’s a breakdown:
Age of the patient |
Maximum deduction allowed |
Below 60 years |
Up to Rs. 40,000 |
60 years and above (Senior Citizens) |
Up to Rs. 1,00,000 |
Above 80 years (Super Senior Citizens) |
Up to Rs. 1,00,000 |
The deduction you can claim is the lower of:
The actual medical expenses paid
The applicable deduction limit based on age
Note:
If any amount is reimbursed through health insurance or by your employer, that amount must be reduced from your claim.
For example, if you spent Rs. 1,00,000 on treatment but your insurance reimbursed Rs. 65,000, you can claim only Rs. 35,000.
The deduction can be claimed only on expenses that have actually been paid — not on estimates or unpaid bills.
How to get a certificate of the disease for 80DDB deduction?
To claim a deduction under Section 80DDB, you must get a medical certificate from a qualified doctor. Here’s what you should know:
The certificate should be obtained from the hospital where the treatment was provided.
The specialist issuing the certificate must be qualified in the relevant field. For example:
Neurological Diseases – Specialist with D.M. in Neurology
Cancer – Specialist with D.M. in Oncology
AIDS – Postgraduate degree in General Internal Medicine
The certificate must include:
Name and age of the patient
Specific name of the disease
Name, address, qualification, and registration number of the certifying doctor
If the treatment was taken in a government hospital, include the name and address of the hospital.
Form 10-I is no longer needed for claiming this deduction.
Make sure the certificate is complete and clearly written, as you may be asked to present it by the tax department if your claim is reviewed.
Prescription format for claiming 80DDB deduction
A proper prescription or certificate is essential to claim a deduction under Section 80DDB. It should follow this format:
1. Patient details
Full name
Age
Name of the disease or ailment
2. Specialist details
Full name of the doctor
Address
Medical qualification(s)
Medical registration number
3. Government Hospital Details (if applicable)
Name of the government hospital or institution
Address of the hospital
4. Signatures required
The doctor who prescribed or treated the condition must sign
If applicable, the Head of the concerned department should also sign (especially in government hospitals)
Earlier, taxpayers were required to submit Form 10-I, but this is no longer needed. Now, as long as the above details are present in a standard prescription format from a recognised specialist, it is considered valid.
You do not need to upload the prescription while filing your tax return, but you must keep it safely in case the tax department asks for it during assessment.
Planning for medical expenses while building wealth through property investment is a smart financial strategy. Home ownership provides both security and potential tax benefits beyond medical deductions. Bajaj Finserv offers comprehensive financing solutions with processing approval in just 48 hours*. Check your eligibility for a home loan from Bajaj Finserv to strengthen your financial portfolio. You may already be eligible, find out by entering your mobile number and OTP.
What documents are required and how to claim deduction u/s 80DDB?
To claim a deduction under Section 80DDB, the taxpayer needs to obtain a prescription from a specialist doctor. The prescription should contain details such as the name and age of the patient, the disease diagnosed, and the name and registration number of the specialist issuing the prescription.
Additionally, the taxpayer needs to submit the actual bills or receipts of the expenses incurred on the treatment. It is crucial to keep these documents safely, as they may be required for verification by tax authorities.
Other topics you might find interesting |
|||
How to adjust the amount of deduction with any reimbursement?
Under Section 80DDB, eligibility for deduction hinges upon adjustments made by the insurer's payment toward health insurance or reimbursement from the employer.
For instance, if a taxpayer spends Rs. 60,000 on medical treatment for a specified illness, they can claim a deduction of Rs. 40,000 under Section 80DDB. However, if they receive Rs. 30,000 from an insurer, their deductible amount reduces accordingly. Thus, they can only claim Rs. 10,000 (Rs. 40,000 minus Rs. 30,000).
If the insurer pays Rs. 50,000 for a Rs. 60,000 claim, surpassing the Rs. 40,000 limit, no deduction is possible under Section 80DDB. Moreover, for senior citizens, the allowable deduction is higher at Rs. 1,00,000 minus the insurance payout (e.g., Rs. 50,000).
In conclusion, Section 80DDB of the Income Tax Act provides a valuable avenue for taxpayers to claim deductions for expenses incurred on the treatment of specified diseases. It is essential to understand the eligibility criteria, maintain proper documentation, and follow the prescribed formats to avail the benefits under this section. Utilising an income tax calculator can help assess potential deductions accurately. As always, consulting with a tax adviser for personalised guidance is recommended.
Difference between sections 80DD and 80DDB?
Section 80DD and Section 80DDB may sound similar, but they apply to different situations. Section 80DD allows deductions for the care, support, and maintenance of a dependent family member with a permanent disability. This includes expenses such as rehabilitation and training.
Section 80DDB, however, relates to expenses actually incurred for treating specific serious illnesses such as cancer or kidney failure. While deductions under 80DD are more regular and related to long-term disability care, deductions under 80DDB depend on the treatment of medical conditions and may only be claimed when such treatment occurs.
Important points to note for Section 80DDB deduction
Claiming a deduction under Section 80DDB can help reduce your tax burden significantly. Here are some important things to keep in mind:
1. Who can claim?
Only resident individuals and HUFs are eligible to claim this deduction.
2. Who can the deduction be claimed for?
You can claim it for yourself or for a dependent family member like your spouse, children, parents, or siblings. HUFs can claim it for any dependent member of the family.
3. For which diseases?
Only for illnesses listed under Rule 11DD, including cancer, Parkinson’s, AIDS, chronic renal failure, and certain neurological disorders.
4. How much can be claimed?
Up to Rs. 40,000 for patients below 60
Up to Rs. 1,00,000 for those aged 60 or above
Only the amount actually paid is considered
5. Reimbursement adjustments
If any amount is reimbursed by your insurer or employer, subtract it from your total expense before calculating the deduction.
6. Medical certificate is a must
Get a certificate from a recognised specialist. Ensure the certificate includes all key details like disease name, patient information, and doctor’s credentials. Form 10-I is not needed anymore.
Additional read: Explore Income Tax Section for Home Loan Interest Deduction
Popular calculators for your financial calculations |
||
