Section 80DDB: Deduction for Treatment of Specified Diseases

author portrait

Hiral Vakil

Chapter VI-A
HUF
Section 80DDB
Last updated on February 3rd, 2023

Section 80DDB of income tax act 1961 provides deduction for medical treatment of specified diseases. This deduction can only be claimed if an individual or HUF has incurred expenses towards the maintenance and care of the designated ailments. Following diseases are covered under 80DDB deduction:

The taxpayer can claim this income tax deduction at the time of filing ITR under Chapter VI-A.

Who is eligible to claim 80DDB deduction?

Any of the following taxpayer or dependent who suffers from the diseases, qualify for the deduction under section 80DDB of income tax act:

In case of an individual:

(Dependent includes children, spuse, parents or siblings)

In case of HUF:

What is 80DDB Deduction Limit?

The age of the person for whom the medical expenses are incurred determines the amount that can be claimed as a deduction under section 80TTB of income tax act.

Age of the person who is undergoing the treatmentDeduction Limit
Age less than 60 yearsINR 40,000 or actual expense whichever is less
Age is 60 years or moreINR 1,00,000 or actual expense whichever is less

Important Points:

How is the Deduction Calculated Under Section 80DDB?

Actual expenses on treatmentxxx
Maximum (INR 40,000/1,00,000)xxx
Whichever is lowerxxx
Less: Insurance claim(xxx)
Amount of deductionxxx

To understand the calculation better, let us take an example:

Scenario 1:

Abhijeet is 35 years old and incurs an expense of INR 70,000 on the medical treatment of a specific disease. He is eligible to claim a maximum deduction of INR 40,000 under Section 80DDB. Abhijeet also receives INR 25,000 as reimbursement from the insurance company against the expenses he has incurred.

As Abhijeet has already been reimbursed for INR 25,000, he will be able to claim a deduction of INR 15,000 (INR 40,000 minus the amount received by the insurance company, i.e., INR 25,000) under Section 80DDB.

Scenario 2:

Ashutosh is 40 years old and incurs an expense of INR 70,000 on the medical treatment of a specific disease. His insurance company reimbursed INR 50,000 against the expenses he made.

In this scenario, Ashutosh will not be able to claim a deduction under Section 80DDB, as the reimbursement by the insurance company is already more than the permissible limit u/s 80DDB. (It is, however, important to note that if Ashustosh was to incur this expense for a senior citizen then, he will be permissible deduction under section 80DDB for Senior citizen will be upto Rs. 1,00,000)

Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore
Income Tax Calculator
Calculate income tax liability for FY 2020-21. Compare tax liability as per New vs Old Tax Regime.
Explore

Acquire Certificate for Claiming Deduction Under Section 80DDB

As mentioned formerly, it is mandatory to provide a valid proof via certificate of the disease. A medical practitioner can issue the certificate as shown in the table below.

DiseaseEligible Person who can issue certificate
Neurological Diseases where the disability level is proved to be of 40% and above

(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinsons Disease
A neurologist who has an MD degree in Neurology

Or

any degree that the medical council of India reconizes as equivalent.
Malignant CancersAn oncologist who has an MD degree in Oncology

Or

any degree that the medical council of India reconizes as equivalent.
AIDS (Full Blown Acquired Immuno-Deficiency Syndrome)Any specialist who has a postgraduate degree in general or internal medicine

Or

any degree that the medical council of India reconizes as equivalent.
Chronic Renal FailureChronic Renal Failure A nephrologist who has an MD degree in Nephrology. Or a urologist who has a Master Chirurgiae (M.Ch.) degree in Urology

Or

any degree that the medical council of India reconizes as equivalent.
Haematological Disorders
(i) Haemophilia
(ii) Thalassaemia
A specialist who has an MD degree in Hematology

Or

any degree that the medical council of India reconizes as equivalent.
Earlier, a certificate was required to be obtained and submitted in Form No. 10-I to claim this deduction which has been duly omitted now. You can therefore acquire the same but it not mandatory to provide the form along with your income tax return in order to claim the deduction.
Tip
Earlier, a certificate was required to be obtained and submitted in Form No. 10-I to claim this deduction which has been duly omitted now. You can therefore acquire the same but it not mandatory to provide the form along with your income tax return in order to claim the deduction.

What Information Should the Certificate Contain?

The acquired certificate must have the following details:

  1. Name and Age of Patient
  2. Name of the Disease
  3. Details of the specialist issuing the prescription, such as Name, Address, Registration Number, Qualification
  4. The name and address of the hospital if the treatment was taken in a government hospital
Find the best plan
Find the best plan
GET EXPERT HELP
Find the best plan
Find the best plan

ITR Form Applicable for Section 80DDB

The taxpayer can claim deductions u/s 80DDB while filing ITR if all the conditions are met. Individuals or HUFs can claim 80DDB in any of the ITR forms, i.e., ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources.

Supporting Documents

Along with common documents like Form 16, PAN, etc, it is mandatory for the assessee to provide proof of expenditure, such as medical bills. Therefore, it is compulsory to obtain a prescription for such treatments from a qualified doctor.

FAQs

What diseases does Section 80DDB of income tax act cover?

Specified diseases such as AIDs, cancer, dementia, neurological diseases, etc. are covered under 80DDB.

Can I claim deductions on both 80DD and 80DDB?

Yes, you can claim both the deductions 80DD- for disabled dependents and 80DDB- medical treatment of specified disease provided you satisfy the conditions.

Are all types of cancers covered under section 80DDB?

No, section 80DDB only covers Malignant Cancer.

What is the difference between 80DD & 80DDB?

80DD relates to medical costs incurred for the treatment of disabled dependents.
While 80DDB relates to medical costs incurred towards the treatment of specified diseases for self and dependents.

Got Questions? Ask Away!

  1. Am i eligible to claim 80ddb and 80u simultaneously?

  2. Hi @Zainab_Hawa1,

    Yes, you can claim both deductions at the same time provided 80U is claimed for yourself and 80DD is claimed for a disabled dependent.