Section 80C to 80U under Chapter VI A of the Income Tax Act allows flexibility for permissible tax deductions. Section 80DDB allows specified and permissible tax deductions for certain mentioned diseases for individuals and Hindu Undivided Families. However, deductions cannot be gained for long-term capital gains.
However, it is important to note that deductions under this section are not premiums paid for health insurance bought covering such 80DDB list of diseases or ailments. Health insurance payment is covered under another section of the Income Tax Act.
Following people can claim deductions under Section 80DDB of the Income Tax Act. These are given below: -
Income Tax deduction under this act can only be claimed by individuals. Any corporate or business entity cannot claim benefits under this section. However, these deductions provided under Section 80DDB are subjected to some conditions and restrictions.
The criteria for deduction of the amount under section 80DDB of the Income Tax Act is based on the age of the person who is seeking the treatment. For the purpose of this action, senior citizen includes:
|Age of the Person||Amount of Deduction (Rs.)|
|Age lesser than 60 years||Rs. 40,000 or actual expenses whichever is less|
|Senior Citizens||Rs 1,00,000 or actual expenses whichever is less|
|Very Senior Citizens||Rs 1,00,000 or actual expenses whichever is less|
Income tax deduction under section 80DDB can be claimed for below-specified 80DDB diseases.
|Serial No.||Name of Disease||Name of Specialist Pertaining to that Disease|
|1||Neurological diseases where the disability level is of a minimum of 40% and above. These include: - Dementia, Motor Neuron Diseases, Dystonia Musculorum Deformans, Chorea, Ataxia, Aphasia, Hemiballismus, Parkinson’s Disease||Neurologist having an MD in Neurology, or any equivalent degree recognised by MCI (Medical Council of India)|
|2||AIDS (Acquired Immuno Deficiency Syndrome)||Specialist having MD in Internal Medicine|
|3||Malignant Cancers||Oncologist having an MD degree that is recognised by the Medical Council of India|
|4||Chronic Renal Failure||Nephrologist having MD degree or a Urologist having MS or Mch. Degree|
The above table shown the 80DDB deduction diseases list. Specialist doctors mentioned in the above-mentioned table can issue 80DDB certificate from private hospital to people who are claiming deductions under Section 80DDB of the Income tax act. Apart from these, patients getting treatment in a private hospital cannot take a certificate from a government hospital.
Pre-Requisites in the Medical Certificate
A medical certificate should contain the following things, these are given below: -
In a nutshell, it can be concluded that under section 80DDB of the Income Tax Act, tax deductions can be claimed by Indian residents. However, there’s a criterion for availing deductions under section 80DDB diseases of the Income Tax Act.