Tax Deduction under Section 80DDB and How to get a certificate for claiming

Income Tax Deduction for dependents with specified diseases under Section 80DDB and Check How to get a certificate for claiming deduction

Taxpayers who have dependents with specified diseases write to us inquiring about how to get a certificate for claiming deduction under section 80DDB on their income tax return. This has been discussed below:

Deduction in respect of medical treatment, etc.

80DDB. Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board—

 (a) for himself or a dependant, in case the assessee is an individual; or

 (b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid :

Provided that no such deduction shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed :

Provided further that the deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred to in clause (a) or clause (b) :

Provided also that where the amount actually paid is in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words “forty thousand rupees”, the words “84[one hundred] thousand rupees” had been substituted :

Explanation.—For the purposes of this section,—

  (i) “dependant” means—

  (a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

  (b) in the case of a Hindu undivided family, a member of the Hindu undivided family,

dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

 (ii) [***]

(iii) “insurer” shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(iv) “senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year;

1. How and from whom to take this certificate

(Refer Rule 11DD of the Income-tax Rules)

• The certificate can be taken from a Specialist as per the table below.
• Patients getting treated in a private hospital are not required to take the certificate from a government hospital.
• Patients receiving treatment in a government hospital have to take the certificate from any specialist working full-time in that hospital. Such specialist must have a postgraduate degree in General Medicine or an equivalent degree, which is recognized by the Medical Council of India (MCI).
• Certificate in Form 10 is no longer required.
• The certificate must have

– name and age of the patient

– name of the disease or ailment

– name, address, registration number and the qualification of the specialist issuing the prescription

– If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.

Here are the specialists who can give certificate under section 80DDB –

Serial No	Disease	Certificate to be taken from
(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) Parkinsons Disease	Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India
(ii)	Malignant Cancers	Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India
(iii)	Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)	any specialist having a post-graduate degree in General or Internal Medicine, or any equivalent degree which is recognised by the Medical Council of India
(iv)	Chronic Renal failure	a Nephrologist having a Doctorate of Medicine(D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae(M.Ch.) degree in Urology or any equivalent degree, which is recognised by the Medical Council of India
(v)	Hematological disorders(i) Hemophilia (i) Hemophilia (ii) Thalassaemia	a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognised by the Medical Council of India

2. Details of deduction allowed under section 80DDB

Deduction under section 80DDB is allowed for medical treatment of a dependant who is suffering from a specified disease (listed in the table above).

a. Can be claimed by an Individual or HUF

b. Allowed to Resident Indians

c. When taxpayer has spent money on treatment of the dependant

d. Dependant shall mean spouse, children, parents and siblings

e. In case the dependant is insured and some payment is also received from an insurer or reimbursed from an employer, such insurance or reimbursement received shall be subtracted from the deduction.

3. Amount allowed as a deduction

For FY 2014-15 (Assessment Year 2015-16)

• Rs 40,000/- or the amount actually paid, whichever is less.
• In the case of a senior citizen, Rs 60,000 or amount actually paid, whichever is less.

From FY 2015-16 onwards (Assessment Year 2016-17)

• 40,000/- or the amount actually paid, whichever is less.
• In the case of senior citizen Rs, 60,000 or amount actually paid, whichever is less.
• For very senior citizens Rs 80,000 is the maximum deduction that can be claimed.

From FY 2018-19 onwards (Assessment Year 2019-20)

• 40,000/- or the amount actually paid, whichever is less.
• In the case of a senior citizen and super-senior citizen, Rs.1,00,000 or amount actually paid, whichever is less.