Section 80DDB of Income Tax Act: Deduction Limit, Diseases Covered, and Procedure

Section 80DDB of Income Tax Act: Deduction Limit, Diseases Covered, and Procedure. Section 80DDB of Income Tax Act offers a significant relief for taxpayers who incur high medical expenses due to the treatment of certain specified diseases. This section allows individuals and Hindu Undivided Families (HUFs) to claim a deduction for the expenses incurred on the treatment of specific ailments listed under Rule 11DD of the Income Tax Rules. Let us understand in detail the eligibility, deduction limits, diseases covered, and how to claim this deduction effectively.
Who Can Claim Deduction under Section 80DDB of Income Tax Act?
The deduction under Section 80DDB is specifically allowed to Individuals and Hindu Undivided Families (HUFs). It cannot be claimed by companies or any other types of entities. To be eligible, the individual or HUF must be a Resident of India. Non-resident individuals are not allowed to claim this benefit.
Further, the deduction is applicable only when the taxpayer has incurred expenses on the treatment of a dependent family member who is suffering from any of the specified diseases. The dependent in case of an individual includes their spouse, children, parents, brothers, and sisters. In the case of HUF, any member of the family qualifies as a dependent.
Conditions to Claim Deduction under Section 80DDB
Section 80DDB of Income Tax Act allows deduction only when the treatment is for specified diseases and the expenses are actually incurred by the taxpayer. The treatment should be for a dependent family member who does not have any independent source of income.
The deduction amount is reduced by the amount reimbursed by an insurance company or employer. This means, if you have a health insurance policy and you receive reimbursement for the treatment expenses, the deductible amount under Section 80DDB will be the actual expense minus the reimbursement.
Deduction Limit under Section 80DDB of Income Tax Act
The deduction limit under Section 80DDB has changed over the years. From FY 2018-19 onwards, the maximum deduction allowed depends on the age of the patient:

For individuals below the age of 60 years, the deduction is Rs. 40,000 or the actual amount paid, whichever is less.

For senior citizens (aged 60 years and above but below 80 years), the deduction is Rs. 1,00,000 or the actual amount paid, whichever is less.

For super senior citizens (aged 80 years and above), the deduction is also Rs. 1,00,000 or the actual amount paid, whichever is less.

For earlier years (before FY 2018-19), the deduction limits were lower, varying from Rs. 40,000 to Rs. 80,000 based on the age category of the dependent.
Example for Better Understanding
If an individual spends Rs. 80,000 on medical treatment and receives Rs. 30,000 as reimbursement from an insurer, they can claim Rs. 10,000 under Section 80DDB (Rs. 40,000 - Rs. 30,000).
For a senior citizen in the same scenario, the deductible amount would be Rs. 70,000 (Rs. 1,00,000 - Rs. 30,000). However, if the reimbursement amount exceeds the allowable deduction limit, the taxpayer will not be eligible to claim any deduction. For instance, if Rs. 60,000 is reimbursed and the taxpayer is below 60 years, no deduction can be claimed since it exceeds the Rs. 40,000 threshold.
Diseases Covered under Section 80DDB
The diseases eligible for deduction under Section 80DDB are defined in Rule 11DD. These diseases are severe and generally require long-term treatment and high medical expenditure. Here is a list of diseases and the specialists authorized to issue the required certificate:

Neurological Diseases with Disability Level of 40% and Above:

Diseases: Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinson's Disease.

Certificate Required From: Neurologist with a Doctorate of Medicine (D.M.) in Neurology or an equivalent qualification recognized by the Medical Council of India (MCI).

Malignant Cancer:

Certificate Required From: Oncologist with a D.M. in Oncology or an equivalent degree recognized by MCI.

Full Blown AIDS (Acquired Immuno-Deficiency Syndrome):

Certificate Required From: Specialist with a post-graduate degree in General or Internal Medicine or an equivalent qualification recognized by MCI.

Chronic Renal Failure:

Certificate Required From: Nephrologist with D.M. in Nephrology or Urologist with M.Ch. in Urology or any equivalent qualification recognized by MCI.

Hematological Disorders:

Diseases: Hemophilia and Thalassemia.

Certificate Required From: Specialist with a D.M. in Hematology or an equivalent degree recognized by MCI.

Certificate Requirement for Claiming Deduction under Section 80DDB
It is mandatory to obtain a medical certificate from a specialist for claiming the deduction under Section 80DDB. The format of the certificate has been relaxed, and Form 10-I is no longer required. However, the certificate must include all essential details such as:

Name and age of the patient

Name of the disease or ailment

Name, address, registration number, and qualification of the specialist issuing the certificate

If the patient is treated in a government hospital, the name and address of the hospital should also be mentioned

For treatment in private hospitals, the certificate can be issued by any of the authorized specialists. However, for government hospitals, the specialist must be a full-time employee of that hospital and should hold a valid postgraduate degree recognized by MCI.
Documents to be Maintained for Section 80DDB Claim
While filing your income tax return, you should maintain the following documents:

Original medical bills and invoices

Copy of the certificate issued by the specialist

Proof of payment made such as bank statement or receipt

Reimbursement statement from insurer or employer, if applicable

These documents are not required to be attached while filing the ITR but must be preserved for verification by the Assessing Officer if required.
Filing Deduction under Section 80DDB of Income Tax Act
You can claim the deduction under Section 80DDB while filing your income tax return. The deduction should be reported in the relevant section in the ITR form. The PAN of the person treated and details of the specialist issuing the certificate must also be furnished.
Ensure that the total amount claimed is after deducting any reimbursement received. Providing false information or inflated expenses may attract penalties or scrutiny from the Income Tax Department.
Key Points to Remember

The benefit is only available to resident individuals or HUFs.

Only specified diseases qualify for deduction.

A certificate from a qualified specialist is mandatory.

Deduction amount is reduced if the taxpayer has received reimbursement.

Maximum deduction is Rs. 40,000 for individuals under 60, and Rs. 1,00,000 for senior and super senior citizens.

Dependents include spouse, children, parents, brothers, sisters (for individuals), and any member (for HUF).

Conclusion
Section 80DDB of Income Tax Act is an important relief for taxpayers who are burdened with high treatment costs for specified critical illnesses. To ensure successful claims, one must adhere strictly to the documentation requirements and obtain the certificate from the appropriate specialist. Filing accurate details in the ITR and preserving the records can help avoid future complications. Understanding and utilizing the benefits under Section 80DDB can significantly reduce the tax liability of taxpayers who are managing the financial strain of long-term medical care.
This provision is not just a tax-saving measure but a form of support for those facing health crises within their families. Taxpayers must remain aware and compliant with the rules to gain full advantage of this deduction.
If you have any queries, you can book a consultation with Compliance Calendar experts through email at info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. Who can claim deduction under Section 80DDB of the Income Tax Act?
Ans. Only Resident Individuals and Hindu Undivided Families (HUFs) are eligible to claim deductions under Section 80DDB. Companies, firms, and non-residents are not eligible. The deduction is allowed when the taxpayer incurs medical expenses for the treatment of a specified disease for self or dependent family members.
Q2. What is the maximum deduction allowed under Section 80DDB?
Ans. The maximum deduction depends on the age of the patient:

Individuals below 60 years: Rs.40,000 or actual amount paid (whichever is less)\n

Senior citizens (60–79 years): Rs.1,00,000 or actual amount paid (whichever is less)\n

Super senior citizens (80+ years): Rs.1,00,000 or actual amount paid (whichever is less)
 If reimbursement is received from an insurance company or employer, the deductible amount is reduced accordingly.

Q3.What are the diseases covered under Section 80DDB?
Ans. Diseases notified under Rule 11DD include:\n

Neurological diseases with 40%+ disability (e.g., Parkinson’s, Dementia)\n

Malignant cancers\n

Full-blown AIDS\n

Chronic renal failure\n

Hematological disorders (e.g., Hemophilia, Thalassemia)
 Each disease requires a certificate from a specialist doctor with qualifications recognized by the Medical Council of India.

Q4. Is reimbursement from health insurance or employer covered under Section 80DDB?
Ans. Yes, but the amount of reimbursement is deducted from the eligible deduction. For example, if you spent Rs.80,000 on treatment and received Rs.30,000 from an insurer, your net eligible deduction would be Rs.50,000 (subject to the maximum limit based on age).
Q5. What documents are required to claim deduction under Section 80DDB?
Ans. The taxpayer must keep:\n

Medical certificate from a qualified specialist\n

Proof of treatment and payment receipts\n

Reimbursement statement, if any\n
 These documents need not be submitted with the income tax return but must be retained for verification.

Q6. Can treatment in private hospitals be considered for Section 80DDB deduction?
Ans. Yes, treatment in private hospitals is allowed. The certificate can be obtained from a specialist doctor (neurologist, oncologist, etc.) who holds a relevant degree recognized by the Medical Council of India. If treatment is availed in a government hospital, the doctor must be a full-time employee of that hospital.
Q7. Is Form 10-I still required for claiming deduction under Section 80DDB?
Ans. No, Form 10-I is no longer mandatory. However, the certificate from the specialist must contain details such as the patient’s name and age, disease name, doctor’s name, qualifications, registration number, and hospital name (if government hospital).

Section 80DDB of Income Tax Act offers a significant relief for taxpayers who incur high medical expenses due to the treatment of certain specified diseases. This section allows individuals and Hindu Undivided Families (HUFs) to claim a deduction for the expenses incurred on the treatment of specific ailments listed under Rule 11DD of the Income Tax Rules. Let us understand in detail the eligibility, deduction limits, diseases covered, and how to claim this deduction effectively.

Who Can Claim Deduction under Section 80DDB of Income Tax Act?

The deduction under Section 80DDB is specifically allowed to Individuals and Hindu Undivided Families (HUFs). It cannot be claimed by companies or any other types of entities. To be eligible, the individual or HUF must be a Resident of India. Non-resident individuals are not allowed to claim this benefit.

Further, the deduction is applicable only when the taxpayer has incurred expenses on the treatment of a dependent family member who is suffering from any of the specified diseases. The dependent in case of an individual includes their spouse, children, parents, brothers, and sisters. In the case of HUF, any member of the family qualifies as a dependent.

Conditions to Claim Deduction under Section 80DDB

Section 80DDB of Income Tax Act allows deduction only when the treatment is for specified diseases and the expenses are actually incurred by the taxpayer. The treatment should be for a dependent family member who does not have any independent source of income.

The deduction amount is reduced by the amount reimbursed by an insurance company or employer. This means, if you have a health insurance policy and you receive reimbursement for the treatment expenses, the deductible amount under Section 80DDB will be the actual expense minus the reimbursement.

Deduction Limit under Section 80DDB of Income Tax Act

The deduction limit under Section 80DDB has changed over the years. From FY 2018-19 onwards, the maximum deduction allowed depends on the age of the patient:

For individuals below the age of 60 years, the deduction is Rs. 40,000 or the actual amount paid, whichever is less.
For senior citizens (aged 60 years and above but below 80 years), the deduction is Rs. 1,00,000 or the actual amount paid, whichever is less.
For super senior citizens (aged 80 years and above), the deduction is also Rs. 1,00,000 or the actual amount paid, whichever is less.

For earlier years (before FY 2018-19), the deduction limits were lower, varying from Rs. 40,000 to Rs. 80,000 based on the age category of the dependent.

Example for Better Understanding

If an individual spends Rs. 80,000 on medical treatment and receives Rs. 30,000 as reimbursement from an insurer, they can claim Rs. 10,000 under Section 80DDB (Rs. 40,000 - Rs. 30,000).

For a senior citizen in the same scenario, the deductible amount would be Rs. 70,000 (Rs. 1,00,000 - Rs. 30,000). However, if the reimbursement amount exceeds the allowable deduction limit, the taxpayer will not be eligible to claim any deduction. For instance, if Rs. 60,000 is reimbursed and the taxpayer is below 60 years, no deduction can be claimed since it exceeds the Rs. 40,000 threshold.

Diseases Covered under Section 80DDB

The diseases eligible for deduction under Section 80DDB are defined in Rule 11DD. These diseases are severe and generally require long-term treatment and high medical expenditure. Here is a list of diseases and the specialists authorized to issue the required certificate:

Neurological Diseases with Disability Level of 40% and Above:

Diseases: Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinson's Disease.
Certificate Required From: Neurologist with a Doctorate of Medicine (D.M.) in Neurology or an equivalent qualification recognized by the Medical Council of India (MCI).

Malignant Cancer:

Certificate Required From: Oncologist with a D.M. in Oncology or an equivalent degree recognized by MCI.

Full Blown AIDS (Acquired Immuno-Deficiency Syndrome):

Certificate Required From: Specialist with a post-graduate degree in General or Internal Medicine or an equivalent qualification recognized by MCI.

Chronic Renal Failure:

Certificate Required From: Nephrologist with D.M. in Nephrology or Urologist with M.Ch. in Urology or any equivalent qualification recognized by MCI.

Hematological Disorders:

Diseases: Hemophilia and Thalassemia.
Certificate Required From: Specialist with a D.M. in Hematology or an equivalent degree recognized by MCI.

Certificate Requirement for Claiming Deduction under Section 80DDB

It is mandatory to obtain a medical certificate from a specialist for claiming the deduction under Section 80DDB. The format of the certificate has been relaxed, and Form 10-I is no longer required. However, the certificate must include all essential details such as:

Name and age of the patient
Name of the disease or ailment
Name, address, registration number, and qualification of the specialist issuing the certificate
If the patient is treated in a government hospital, the name and address of the hospital should also be mentioned

Documents to be Maintained for Section 80DDB Claim

While filing your income tax return, you should maintain the following documents:

Original medical bills and invoices
Copy of the certificate issued by the specialist
Proof of payment made such as bank statement or receipt
Reimbursement statement from insurer or employer, if applicable

These documents are not required to be attached while filing the ITR but must be preserved for verification by the Assessing Officer if required.

Filing Deduction under Section 80DDB of Income Tax Act

You can claim the deduction under Section 80DDB while filing your income tax return. The deduction should be reported in the relevant section in the ITR form. The PAN of the person treated and details of the specialist issuing the certificate must also be furnished.

Ensure that the total amount claimed is after deducting any reimbursement received. Providing false information or inflated expenses may attract penalties or scrutiny from the Income Tax Department.

Key Points to Remember

The benefit is only available to resident individuals or HUFs.
Only specified diseases qualify for deduction.
A certificate from a qualified specialist is mandatory.
Deduction amount is reduced if the taxpayer has received reimbursement.
Maximum deduction is Rs. 40,000 for individuals under 60, and Rs. 1,00,000 for senior and super senior citizens.
Dependents include spouse, children, parents, brothers, sisters (for individuals), and any member (for HUF).

Conclusion

Section 80DDB of Income Tax Act is an important relief for taxpayers who are burdened with high treatment costs for specified critical illnesses. To ensure successful claims, one must adhere strictly to the documentation requirements and obtain the certificate from the appropriate specialist. Filing accurate details in the ITR and preserving the records can help avoid future complications. Understanding and utilizing the benefits under Section 80DDB can significantly reduce the tax liability of taxpayers who are managing the financial strain of long-term medical care.

This provision is not just a tax-saving measure but a form of support for those facing health crises within their families. Taxpayers must remain aware and compliant with the rules to gain full advantage of this deduction.

If you have any queries, you can book a consultation with Compliance Calendar experts through email at info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. Who can claim deduction under Section 80DDB of the Income Tax Act?

Ans. Only Resident Individuals and Hindu Undivided Families (HUFs) are eligible to claim deductions under Section 80DDB. Companies, firms, and non-residents are not eligible. The deduction is allowed when the taxpayer incurs medical expenses for the treatment of a specified disease for self or dependent family members.

Q2. What is the maximum deduction allowed under Section 80DDB?

Ans. The maximum deduction depends on the age of the patient:

Individuals below 60 years: Rs.40,000 or actual amount paid (whichever is less)\n
Senior citizens (60–79 years): Rs.1,00,000 or actual amount paid (whichever is less)\n
Super senior citizens (80+ years): Rs.1,00,000 or actual amount paid (whichever is less)

If reimbursement is received from an insurance company or employer, the deductible amount is reduced accordingly.

Q3.What are the diseases covered under Section 80DDB?

Ans. Diseases notified under Rule 11DD include:\n

Neurological diseases with 40%+ disability (e.g., Parkinson’s, Dementia)\n
Malignant cancers\n
Full-blown AIDS\n
Chronic renal failure\n
Hematological disorders (e.g., Hemophilia, Thalassemia)

Each disease requires a certificate from a specialist doctor with qualifications recognized by the Medical Council of India.

Q4. Is reimbursement from health insurance or employer covered under Section 80DDB?

Ans. Yes, but the amount of reimbursement is deducted from the eligible deduction. For example, if you spent Rs.80,000 on treatment and received Rs.30,000 from an insurer, your net eligible deduction would be Rs.50,000 (subject to the maximum limit based on age).

Q5. What documents are required to claim deduction under Section 80DDB?

Ans. The taxpayer must keep:\n

Medical certificate from a qualified specialist\n
Proof of treatment and payment receipts\n
Reimbursement statement, if any\n

These documents need not be submitted with the income tax return but must be retained for verification.

Q6. Can treatment in private hospitals be considered for Section 80DDB deduction?

Ans. Yes, treatment in private hospitals is allowed. The certificate can be obtained from a specialist doctor (neurologist, oncologist, etc.) who holds a relevant degree recognized by the Medical Council of India. If treatment is availed in a government hospital, the doctor must be a full-time employee of that hospital.

Q7. Is Form 10-I still required for claiming deduction under Section 80DDB?

Ans. No, Form 10-I is no longer mandatory. However, the certificate from the specialist must contain details such as the patient’s name and age, disease name, doctor’s name, qualifications, registration number, and hospital name (if government hospital).