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  • Section 80DDB

    Under Section 80DDB, tax deductions can be claimed under Chapter V1-A with regards to the payment of expenses relating to the medical treatment of any person suffering from a specific ailment.

    Who can avail of Deductions Under Section 80DDB?

    Tax deductions under Section 80DDB is only applicable to the following:

    • All individuals
    • Hindu Undivided Families (HUFs)

    Tax deductions can be claimed provided that the entity concerned is residing within India for that tax year and the expenditure relating to medical treatment must be either for the individual or HUF or a family member such as a spouse, parent or sibling that is dependant on them.

    Extent of Deduction that can be claimed under Section 80DDB:

    Deductions totalling to the following amounts can be claimed under Section 80DDB according to the following assessment years:

    For the Assessment Year 2016-2017:

    • The actual amount paid for medical treatment or Rs 40,000, whichever is lower
    • For senior citizens between the ages of 60 and 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower
    • For senior citizens above the age of 80, the actual amount paid for medical treatment or Rs 80,000, whichever is lower

    For the Assessment Year 2015-2016:

    • The actual amount paid for medical treatment or Rs 40,000, whichever is lower
    • For senior citizens between the ages of 60 and 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower
    • For senior citizens above the age of 80, the actual amount paid for medical treatment or Rs 60,000, whichever is lower

    Diseases or Medical Ailments specified under Section 80DDB:

    Section 80DDB specifies the following medical ailments and diseases for which tax deductions can be availed:

    • Diseases that are neurological in nature such as:
      • Ataxia
      • Dementia
      • Aphasia
      • Dystonia Musculorum Deformans
      • Hemiballismus
      • Parkinson’s Disease
      • Chorea
      • Motor Neuron Disease
    • Chronic Renal Failure
    • Malignant Cancers
    • Hematological Disorders such as:
      • Thalassaemia
      • Hemophilia
    • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

    Acquisition of Certificate of the Disease:

    In order for an individual to be eligible for tax deduction under Section 80DDB, he or she must acquire a certificate of the disease. The income tax department has made it easier to acquire this particular certificate by implementing the following changes:

    • For those patients availing of medical treatment at a privately owned hospital
      • The certificate of the disease can be acquired from the same hospital
      • The certificate need not be acquired from a government owned hospital
      • It is mandatory that the certificate is acquired from a specialist. The specialist must possess a degree in his or her field of specialisation that is validated by the Medical Council of India
    • For those patients availing of medical treatment at a government owned hospital
      • The certificate must be acquired via a specialist who is employed on a full-time basis at the hospital
      • It is mandatory for the specialist in question to possess a general post-graduate degree or an internal medicine degree or similar, which is validated by the Medical Council of India
      • The certificate of the disease in Form 10l will not be necessary

    Details to be included in the Certificate of the Disease:

    The following details are to be included in the certificate as per the income tax department:

    • The name of the patient
    • The age of the patient
    • The name of the ailment or the disease in question
    • Details of the specialist such as:
      • Name
      • Address
      • Qualification
      • Registration Number
    • If treatment of the patient is taking place at a government owned hospital, then the name of the hospital as well as its address will have to be mentioned in the certificate.

    Section 80DDB Finance Act 2015 Amendment:

    As per the Finance Act 2015,, Section 80DDB was amended in order for people suffering from medical ailments to claim tax deductions in a simpler and more convenient manner. According to the amendment, all an assessee has to do to claim deductions is to provide a certificate, which he or she has acquired from a doctor who has specialised in that particular field of treatment for which the assessee has sought treatment for. The doctor could either be employed at a government run hospital or a privately owned hospital. Before the amendment, the taxpayer in question had to mandatorily provide a certificate acquired from a specialist doctor who was employed in a government run hospital. 

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