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Section 80DDB: Deduction for Treatment of Specified Diseases

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Hiral Vakil

Chapter VI-A
HUF
Section 80DDB
Last updated on April 16th, 2021

Under Section 80DDB, a deduction is applicable if incurred expenses are on the treatment of specified diseases. Following are the specified diseases:

Deduction under section 80DDB is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80DDB is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

Who can Claim Deduction Under Section 80DDB?

The Section 80DDB deductions can be availed by:

What is the Deduction Limit Under Section 80DDB?

The deduction is allowed only up to the amount of expenditure incurred. For FY 2018-19 (AY 2019-20), the following deduction limits are applicable:

AgeDeduction Amount
Individual or a member of HUF, aged below 60INR 40,000
Individual or a member of HUF, aged 60 years or aboveINR 1,00,000

From 1st April 2016, no deduction shall be allowed unless the prescription is obtained for the treatment from a specialist. It is not necessary that the specialist has to be working at a government hospital.

It is important to note that the while claiming deduction under section 80DDB the amount has to adjusted with the reimbursement received by the insurance company or employer.

How is the Deduction Calculated Under Section 80DDB?

To understand the calcualtion in a better mannner, 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 deduction of INR 40,000 under section 80DDB. Abhijeet also receives INR 25,000 as a 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 (40,000 – 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 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)

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Earlier a certificate was required to be obtained and submitted in Form No. 10-1 to claim this deduction, it has been duly omitted. So, you can obtain the same but it is not a requirement to submit the form along with income tax return to claim the deduction.

Acquire Certificate for Claiming Deduction Under Section 80DDB

Here is the list of people from whom you need to acquire the certificate:

Disease Eligible person to ask for a certificate
Neurological Diseases where the disability level is proved to be of 40% and above A neurologist who has an MD degree in Neurology. Or any equivalent degree that’s recognised by Medical Council of India.
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinsons Disease
Malignant Cancers An oncologist who has an MD degree in Oncology. Or any equivalent degree that’s recognised by Medical Council of India.
AIDS (Full Blown Acquired Immuno-Deficiency Syndrome) Any specialist who has a postgraduate degree in general or internal medicine. Any equivalent degree that’s recognised by Medical Council of India. 
Chronic 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 equivalent degree that’s recognised by Medical Council of India. 
Haematological Disorders A specialist who has an MD degree in Hematology. Or any equivalent degree that’s recognised by Medical Council of India. 
(i) Haemophilia
(ii) Thalassaemia

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What 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, i.e. Name, Address, Registration Number, Qualification
  4. The name and address of the hospital if the treatment was taken in a government hospital
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ITR Form Applicable for Section 80DDB

The taxpayer can claim deductions u/s 80DDB while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80DDB in any of the ITR forms, i.e, ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 10th January 2021 for all taxpayer.
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For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 10th January 2021 for all taxpayer.

Supporting Documents

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

FAQs

What diseases does 80DDB cover?

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

Can I claim Deductions on both 80d and 80DDB?

No, you cannot claim Deductions on both Section 80D and Section 80DDB. Note that Section 80D allows claiming Deductions on general Medical Expenses whereas Section 80DDB allows Deductions for treatment of specific diseases only. It is also important to note that the amount of deduction claimed will be reduced by the amount received from an insurer or reimbursed by the employer for the medical treatment of the said person.

Can I determine the amount to be Deducted u/s 80DDB?

The Deduction amount will depend on the severity of disability/disease. For Senior Citizens, the deducted amount is INR 1,00,000. Individuals below 60 years are entitled a deduction of INR 40,000.

Are all types of cancers covered under section 80DDB?

No, section 80DDB only covers Malignant Cancer.

Got Questions? Ask Away!

  1. Hey @sushil_verma

    There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

  2. Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

    For eg,

    • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
    • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
    • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

    Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

  3. The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

    Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

    As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

  4. Hey @Sharath_thomas , we have updated the content according to the appropriate assessment year. Thanks for the feedback. :slight_smile:

  5. Hey @shindeonkar95

    In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

    However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

    Hope, it helps!

  6. Hello,

    Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

    There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

    I couldn’t find anything on this. Any help is appreciated.

  7. Hello @Veejayy,

    Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

    Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

    These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

    Also, interest earned on these bonds will be taxable.

    Hope this helps!

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