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Section 80DDB of Income Tax Act: How to Get a Certificate for Claiming Deduction under Section 80DDB.

Q: I s it possible to claim a deduction for medical expenses made for a family member?

I Yes, medical expenses incurred for a dependent spouse, children, or parents can be deducted.

Team AckoNov 7, 2024

The old tax regime allows you to claim deductions for investing or spending money for specific purposes. For example, you can claim a tax benefit for paying health insurance premiums under Section 80D of the Income Tax Act. Similarly, you can also claim tax deductions for expenses made to treat a specific illness, as per section 80DDB. In this article, we will shed light on how to save income tax by claiming one of the subsections of 80D, i.e., Section 80DDB. Read on to learn more.

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Contents

What is section 80DDB of the Income Tax Act?
How to save income tax with ACKO Platinum Health Insurance Plans?
Eligibility for Section 80DDB
- Medical conditions allowed under Section 80DDB
- Documents required for claiming under Section 80DDB
Tips for maintaining physical documents
- List of diseases and the specialists who can give certificate under section 80DDB
How to claim a deduction under Section 80DDB
Income Tax rules for Section 80DDB
Frequently asked questions

What is section 80DDB of the Income Tax Act?

Section 80DDB of the Income Tax Act is a tax deduction provision that allows people to deduct medical expenses for treating certain diseases or disorders. The deduction amount is limited based on the individual's age and type of illness. This part applies to salaried and self-employed people, and the expenses can be for oneself, a spouse, dependent parents, or children. Both inpatient and outpatient treatment are eligible for the deduction.

The importance of Section 80DDB is that it helps individuals offset the high cost of medical treatment, making it easier to afford necessary care.

How to save income tax with ACKO Platinum Health Insurance Plans?

At ACKO, we offer highly comprehensive, one-stop health insurance solutions. Our Platinum Plans rids you of unnecessary hassle while buying, using, and claiming against your health insurance policy. Along with useful features like included add-ons, high sum insureds, no waiting period, and no deductions, you can also enjoy tax benefits with ACKO Platinum Plans. Simply upload the payment receipt of your ACKO Health Insurance policy while filing income tax returns under Section 80DDB. You can claim up to Rs. 1 lakh under this section.

Eligibility for Section 80DDB

Individual taxpayers who have incurred medical expenses for specific diseases or conditions may claim deductions under Income Tax Act Section 80DDB. The taxpayer or a dependent, such as a spouse, kid, or parent, can be eligible. The maximum allowable deduction is Rs. 40,000 (Rs. 1 lakh for senior citizens) or exact expenses, whichever is less.

Medical conditions allowed under Section 80DDB

The specified disorders and conditions for the purposes of section 80DDB deduction listed in Rule 11DD are as follows.

AIDS
Haematological disorders
Malignant Cancers
Chronic Renal failure
Neurological Diseases

Documents required for claiming under Section 80DDB

To claim a deduction under Section 80DDB of the Income Tax Act, the following documents may be required.

A specialist doctor's prescription for the treatment of specific disorders.
Bills and receipts i.e., proof of payment for medical expenses incurred.
Proof of the patient's identity, such as a PAN card or Aadhaar card.
Form 10-I, a declaration by the assessee in a specified format, which serves as the claim for deduction.

Note: This list is indicative and may differ from the actual documents required.

Tips for maintaining physical documents

Here are some tips for maintaining physical documents.

Store original documents in a secure and safe place.
Label and organise the documents properly for easy retrieval.
Create digital copies of important documents and store them securely online.
Regularly review and update the papers.
Dispose of outdated or unnecessary documents securely to protect personal information.
Have a backup plan in case of natural disasters or other emergencies.
Keep track of important expiration dates, such as licences and permits.
Use a fireproof safe or safety deposit box to store original, irreplaceable documents.
Consider using a professional document management service for critical or sensitive documents.
Keep copies of important papers in more than one location, such as at home and work.

List of diseases and the specialists who can give certificate under section 80DDB

Disease	Medical Specialist
AIDS	Any Registered Medical Practitioner
Cancer	Oncologist, Hematologist, Radiation Therapist
Chronic Renal Failure	Nephrologist
Dementia	Neurologist, Geriatrician
Hemophilia	Hematologist
Thalassaemia	Hematologist
Parkinson's Disease	Neurologist
Motor Neuron Disease	Neurologist
Chronic Obstructive Pulmonary Disease (COPD)	Pulmonologist
Malignant Cancers	Oncologist, Hematologist, Radiation Therapist
Full Blown Acquired Immune Deficiency Syndrome (AIDS)	Any Registered Medical Practitioner

How to claim a deduction under Section 80DDB

Here are the steps to claim a deduction under Section 80DDB of the Income Tax Act.

Step 1: Maintain a record of all relevant medical bills and receipts.
Step 2: Fill out the tax return form with the necessary information, such as the patient's name and the type of the specified condition or ailment.
Step 3: Determine the total amount of medical expenses incurred during the fiscal year.
Step 4: Enter the amount under "Section 80DDB" on the tax return form to claim the deduction.
Step 5: Submit the tax return form, along with any supporting papers, to the Income Tax Department.

After considering the deductions claimed under Section 80DDB, the Income Tax Department will analyse the tax return and calculate the tax amount. After completing the tax return, you can access the Income Tax Department's official website or mobile app to see the status of your tax liability and the deductions you claimed under Section 80DDB.

Income Tax rules for Section 80DDB

Here are some Income Tax rules related to section 80DDB.

Rules	Description
Eligibility	Only individual taxpayers, including senior citizens and very senior citizens, are eligible to claim deductions under 80DDB.
Medical Expenses	You can only claim the deduction for expenses incurred on medical treatment of specified diseases or ailments, as listed in rule 11DD of the Income Tax Rules.
Receipts	The taxpayer must have valid medical bills or receipts to support the claim for deductions.
Limit	The maximum deduction that you can claim is Rs. 1,00,000 or actual expenses, whichever is less.
Dependent	The taxpayer can claim the deduction for medical expenses incurred for themselves or for their dependent spouse, children, or parents.
Assessment year	You can claim the deduction in the financial year the expenses were incurred.
Double benefit	The taxpayer cannot claim a deduction under both Section 80DDB and any other section for the same expenses.

Frequently asked questions

Here are some common questions and answers about Section 80DDB of the Income Tax Act.

Which medical expenses are eligible for reimbursement under Section 80DDB?

Medical expenses for diseases or conditions described in rule 11DD of the Income Tax Rules, can be claimed under 80DDB.

Can I claim deductions for the same expenses under Section 80DDB and any other section?

No, the taxpayer cannot claim deductions for the same expenses under both 80DDB and any other provision.

Is it possible to claim a deduction for medical expenses made for a family member?

Yes, medical expenses incurred for a dependent spouse, children, or parents can be deducted.

Is it possible to claim the deduction for both inpatient and outpatient treatment?

Yes, as long as the treatment is for a specified sickness or condition stated in Rule 11DD, the deduction can be claimed for both inpatient and outpatient treatment.