Section 80DDB of Income Tax Act, Who can Avail & Documents Required

The recent global healthcare crisis has increased people's dependence on healthcare insurance to save significantly on rising medical costs. However, individuals unable to afford regular healthcare insurance premiums can save on their tax liability instead via Section 80DDB of the IT Act. Under this, you can enjoy an 80DDB deduction on medical expenses incurred on your dependent or yourself.

Sounds good?

Now that you know what 80DDB in Income Tax is, let's talk about eligibility, claim process, and other factors to help you understand better.

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80DDB Deduction: Who Can Avail It?

Take a look at other 80DDB eligibility criteria to claim tax benefits -

Only individuals and Hindu Undivided Families (HUF) are eligible for section 80DDB.
The individual or HUF must be a citizen of India. Non-resident individuals or corporate assesses cannot claim the benefit under this section. &
To be eligible, you must be a taxpayer and have incurred medical expenses for the treatment of diseases affecting your dependents.

In this context, dependents refer to:

If the assessee is an individual, dependents include the spouse, children, siblings, and parents of the individual.
If the assessee is an HUF, any member of the Hindu Undivided family can be considered a dependent

80DDB Diseases List: Disease's Name Against Which You Can Claim Deduction

Take a look at the specified diseases under section 80DDB of Income Tax Act mentioned below -

Neurological Diseases

This deduction covers patients suffering from 40% neurological disability. Diseases include -

Ataxia
Parkinson's Disease
Motor Neuron Disease
Dementia
Hemiballismus
Chorea
Dystonia Musculorum Deformans
Aphasia

Other diseases include

Severe Renal failure
Malignant Cancer
Thalassaemia
Haemophilia
AIDS

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How to Claim Deduction Under Section 80DDB?

Note the following pointers on how to claim tax benefits under 80DDB:

3 Factors to Consider Before Availing 80DDB Deduction

To claim your tax deduction, first consider these pointers:

As an eligible taxpayer, you need to provide a hard copy of a medical certificate. The Central or State government medical board must issue the medical certificate stating the disease.
Ensure that you have incurred eligible medical treatment expenses for the specified disease. These expenses can include fees paid to medical practitioners, costs of diagnostic tests, medicines, and other expenses directly related to the treatment. Keep proper records and receipts of the expenses incurred.
If you are claiming the deduction for a dependent family member, ensure that they meet the definition of a dependent as per the Income Tax Act.

Documents Required to Claim Your 80DDB Deduction

1. Medical Certificate

As a taxpayer, you need to submit a medical certificate issued by an authorised medical practitioner to the Income Tax Department while filing your tax return. This serves as proof for medical treatment or the treatment that has been performed.

Take a look at the table below to know from whom you can receive the same:

[1]

Disease	Certificates
Neurological Disease	A prescription from a Neurologist (Doctorate of Medicine in Neurology or any equivalent degrees)
Severe Renal Failure	A prescription from a Nephrologist (Doctorate of Medicine in nephrology or other equivalent degree). Or else, a prescription from a Urologist (Master of Chirurgiae or other equivalent degrees)
Malignant Cancer	A prescription from an Oncologist (Doctorate of Medicine in oncology or other equivalent degrees)
Haematological Disorders (Thalassaemia and Hemophilia)	A prescription from a specialist (Doctorate of Medicine Degree in Hematology or other equivalent degrees)
AIDS	A prescription from a doctor (Post Graduate Degree in general or internal medicine or other equivalent degrees)

Note: The Medical Council of India must recognise the medical degrees mentioned above.

Also, 2 things to remember:

Person Receiving Treatment at a Private Hospital

In this case, he/she may collect the certificate from the same hospital. Therefore, he does not have to collect the same from a government hospital as instructed earlier.

Person Receiving Treatment from Government Hospital

He/she must collect a medical certificate from a full-time working medical practitioner.

2. Self-Declaration Document

You need to showcase a self-declaration certificate. This serves as proof of the medical expenses you have incurred. Hence, this document must include all the medical expenses, including training and rehabilitation of the disabled dependent.

3. 80DDB Form

According to the new rule, you don't need to submit the prescription and Form 10-1.

But, it is essential in case a dependent suffers from disabilities such as Autism and Cerebral Palsy.

[Source]

How to Fill in the Form for 80DDB?

Follow the step-wise guide to fill up the 80DDB Form:

Step 1: Fill in the patient's name, address, father's name.
Step 2: Write the name and the person's address and relationship with the patient on whom the person is dependent.
Step 3: Mention the name of the disease. Also, specify the extent of the disability (For example, 40% or more).
Step 4: Fill in the name, address, registration and qualification of the doctor issuing the medical certificate. Mention the name and address of the hospital.
Step 5: Fill in the "verification" section. Also, the form should be duly signed by you and the head of the government hospital. He/she must hold a post-graduate degree in General or Internal Medicine.

80DDB Deduction Limit: What Do You Need to Keep in Mind?

The deduction under 80DDB is completely based on the age of the dependent on whom you have incurred medical expenses. So let's take a look at the age category:

Category	Age Description
Seniors	Individuals categorised as seniors are Indian resident and are 60 years or more in the given year.
Super Seniors	Super senior citizens are Indian residents who are 80 years of age or more in the given year.

The maximum ceiling of tax deduction is the actual paid medical cost or ₹40,000 whichever comes first. Considering this, the amount of deduction follows:

Age	80DDB Deduction Amount
Less Than 60 Years	₹40,000 or the actual medical cost, whichever is less
60 Years Or Above	₹1,00,000 or actual medical cost, whichever is less
80 Years Or Above	₹1,00,000 or the actual medical cost, whichever is less

Reduce by amount reimburse by employer or insurer

Example: If your employer or insurer reimburses the medical cost, that credit is adjusted in 80DDB deduction. For example, if you incur a medical cost worth ₹60,000, you can claim a tax exemption of ₹40,000. But, suppose your insurer reimburses ₹30,000 medical costs for the specified diseases. Then, you can claim a deduction of only ₹10,000 under section 80DDB Income Tax Act.

Remember, if the reimbursement exceeds beyond the permissible amount of ₹40,000, then you cannot enjoy a tax deduction. However, if the dependent is a senior citizen, you can enjoy a tax exemption of ₹1,00,000.

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Bottom Line

The government plans to extend the tax benefits to help the patients suffering from the current healthcare crisis. So keep these above pointers in mind to enjoy 80DDB deduction without any hassle.

FAQs about Section 80DDB of Income Tax Act

All

How are deductions under 80DDB different from those under 80DD?

In 80DD, you can enjoy tax deductions on the medical treatments incurred on disabled dependents. At the same time, 80DDB ensures tax benefits on the medical expenses on both self or dependent's medical treatment.

Is paralysis covered under the 80DDB deductions?

Since paralysis falls under neurological disease, it is covered under the 80DDB list.

Can you claim both 80D and 80DDB deductions at the same time?

Yes, you can claim 80D and 80DDB at the same time. But make sure to meet the specified eligibility criteria.

Can you claim both 80D and 80DDB deductions at the same time?

Yes, you can claim both 80D and 80DDB deductions simultaneously. However, ensure you meet the specific eligibility criteria for each. An income tax calculator can be handy to calculate these deductions on your tax liability.

Section 80DDB of Income Tax Act, Who can Avail & Documents Required

80DDB Deduction: Who Can Avail It?

80DDB Diseases List: Disease's Name Against Which You Can Claim Deduction

How to Claim Deduction Under Section 80DDB?

Documents Required to Claim Your 80DDB Deduction

1. Medical Certificate

2. Self-Declaration Document

3. 80DDB Form

How to Fill in the Form for 80DDB?

80DDB Deduction Limit: What Do You Need to Keep in Mind?

Bottom Line

FAQs about Section 80DDB of Income Tax Act

How are deductions under 80DDB different from those under 80DD?

Is paralysis covered under the 80DDB deductions?

Can you claim both 80D and 80DDB deductions at the same time?

Can you claim both 80D and 80DDB deductions at the same time?

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