If assessee spends amount on Medical Treatment of some specified disease

he gets deduction under this section

He may have spent amount on his own medical treatment or treatment of his dependent relative

 

Definition of Dependant Relative (Same for Section 80DD and 80DDB)

In case of Individual In case of HUF
Spouse Any member of HUF 
Children 
Parents 
Brothers 
Sisters   
 who is Wholly or mainly dependent on Individual  who is Wholly or mainly dependent on HUF

 

 

 

Maximum deduction 

Amount Spent on Medical Treatment

or

40000*/60000*/80000*

which ever is less

 

*What is Maximum Limit 

  • Normal Cases 40000
  • Senior Citizen Patient(60 years or more but less than 80)  60000
  • Super Senior Citizen Patient 80000 (80 years and above)

(Note:- Age of Patient is relevant not assessee) 

 

Examples

Q1 Mr A  spent Rs 200000 on Medical Treatment of his father who is dependent on him

Age of Mr A is 62 Years and Mr A's father is 85 years

What is amount of deduction under Section 80DDB?

View Answer

 

How to Compute Deduction

Maximum Deduction is 40000/60000/80000 as explained above

However, if any amount received from Insurance Company or Employer then that amount reduced and balance deduction is available

 

S.No

Particulars

Amount

A

Amount Spent on Medical Treatment

xx

 

Less

 

B

Insurance Claim Received

xx

C

Claim Received from Employer

xx

D

Net Amount Spent

xx

E

Max Amount (40000 or 60000 or 80000)

xx

F

Amount of Deduction -Lower of D & E

xx

 

Q2

Mr A  spent Rs 200000 on Medical Treatment of his father who is dependent on him

Age of Mr A is 62 Years and Mr A's father is 85 years

What is amount of deduction under Section 80DDB?

Mr A received 30000 Compensation from Insurance Company regarding Medical Treatment and 100000 from Company where he is working

View Answer

 

How to claim deduction

Certificate required from Government hospital from prescribed specialists like neurologist, oncologist

Urologist, hematologist immunologist etc.

Prescription for Treatment Required from Prescribed Specialist like  neurologist, an oncologist, a urologist, a hematologist, an immunologist

 

Diseases covered are specified diseases like 

 (i)  Neurological Diseases where the disability level has been certified 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)  Parkinson Disease ; (ii)  Malignant Cancers ; (iii)  Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ; (iv)  Chronic Renal failure ; (v)  Hematological disorders : (i) Hemophilia ; (ii) Thessalonian. 

 

  1. Income Tax
  2. Amendments Income Tax for November 2016 Exams

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.