Tax deduction under section 80 DDB largely covers medical expenditures incurred by a taxpayer during treatment or disability maintenance of self or a dependent family member or relative. The section specifies the diseases that are covered for taxpaying citizen and HUF with the maximum deductible amount being capped at 40,000 INR.

Section 80 DDB is not applicable for all diseases, and only treatments for certain diseases can be claimed for deductions. 80 DDB does not cover a C-section or a cataract operation, but serious ailments like AIDS- Acquired Immune-Deficiency Syndrome, Malignant Cancer, Chronic Renal failure, and blood disorders like Hemophilia or Thalassaemia are a part of the specified list and are therefore covered. It is worth noting that 80 DDB differs from deductions under section 80D.

Deductions against 80 DDB can also be claimed in circumstances of disability, specialist identified cases of neurological disorders like DMD or torsion dystonia, Hemiballismus, Huntington’s, Dementia, Parkinson’s, Motor Neuron Disease, Aphasia, and Ataxia where the disability has been certified at 40 per cent.

Only HUF and individuals can claim income tax deductions under 80 DDB provided they had been residing in India at least since the year before filing the claim. This facility is not available for companies, organizational bodies, and similar entities or non-resident Indians.

Only the individual bearing the expenditures can claim deduction under 80 DDB. The others fall under the “dependant category” for the claimant and may include either all or anyone among the spouse, children, parents, and siblings.

The HUF is treated as a single unit or a “person” under Hindu Law and can also claim deduction up to a maximum of 40,000 INR under this category when incurring medical expenses for the treatment of any family member.

According to the latest changes in the Union Budget, an individual can now claim a deduction of up to 1,00,000 INR if the family member on behalf of whom the medical expenditure is borne is a senior (aged above 60 but below 80) or a super senior (aged 80 and above).

All medical expenditure refunds and reimbursements by the taxpayer’s employer or an insurer will be removed from consideration for the amount the individual can claim under 80 DDB. The patient should obtain a certificate mentioning all the details, including the qualification of the specialist issuing it. Furthermore, it must be noted that, to submit an actionable claim under this section, taxpayers must furnish valid prescriptions for all such treatments from their medical expert.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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