Mediclaim Under Section 80DDB: Know About Deductions For Medical Expenses

Key Takeaways

• Section 80DDB provides deductions for medical expenses incurred on the treatment of specified serious illnesses like cancer, Parkinson’s, chronic renal failure, and more.

• Both individuals and Hindu Undivided Families (HUFs) can claim this deduction for themselves or their dependents, but a specialist doctor’s certificate and Form 10-I are mandatory.

• The maximum deduction is ₹40,000 for individuals below 60, ₹1 lakh for senior (60+) and super senior (80+) citizens, subject to actual expenses incurred.

Section 80DDB provides tax deductions for expenses incurred on the medical treatment of certain diseases or ailments. It offers relief when you and your family members are dealing with the financial burden of treatment for certain serious health conditions. We’ll help you learn more about  Section 80DDB deduction disease list and how to claim these deductions to reduce your tax burden.

Let’s look further into the finer aspects of the deductions under Section 80DDB.

How are Sections 80DD and 80DDB Different?

Section 80DD provides deductions for the expenses incurred in maintaining and taking care of a dependent family member with a major disability. On the other hand, Section 80DDB helps you claim medical treatment expenses for specified diseases and medical conditions. 

Who Can Claim the Deduction?

To claim deductions under Section 80DDB, the following criteria must be met:

• You must be an individual who is claiming for yourself or your dependents or a Hindu Undivided Family (HUF) for any of its members.

• You must be a resident or a non-resident Indian.

• You must have a certificate from a qualified specialist doctor. This is mandatory.

80DDB Deduction Diseases List: What’s Covered?

To claim this tax benefit, knowing the Section 80DDB deduction diseases list is crucial. The deduction is not available for any and every medical condition. It is limited to the treatment of the following specific diseases and ailments:

• Neurological Diseases such as:

• Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

• Chronic Renal Failure

• Hematological Disorders such as:

Section 80DDB deduction limit varies based on the age of the patient and the actual expenses incurred. For people below 60 years of age, you can claim a maximum deduction of ₹40,000. However, for people above 60 years of age (senior citizens) or above 80 years of age (super senior citizens), the maximum deductible amount is ₹1 lakh.

Documents Required

To claim this deduction, you'll need the following:

• Medical Certificate: The certificate must be obtained from a specialist doctor in the relevant field. It should clearly state the patient's name, the disease or ailment being treated, and the name and qualifications of the specialist.

• Prescription and Bills: Keep records of all medical prescriptions, diagnostic test reports, and hospital bills. These documents serve as proof of the expenses you've incurred.

• A Form 10-I certified by a specialist.

To claim the deduction under Section 80DDB, follow these steps:

1. Obtain a Prescription: Get a prescription from a qualified specialist. The prescription must detail the disease and the treatment required.

2. Fill out Form 10-I: This form must be certified by the specialist who issued the prescription. It serves as evidence of the medical condition and treatment costs.

3. Submit the Form and Prescription: Along with Form 10-I and the prescription, submit any supporting documents, such as medical bills and receipts, while filing your tax returns.

4. Getting the Medical Certificate:

Obtaining the medical certificate is a critical step. The certificate must be from a specialist in the field related to the specific disease. For example, a cancer patient needs a certificate from an oncologist. The certificate should include the patient's name, the diagnosed disease, and the specialist's name and qualifications.

While this deduction can significantly reduce your taxable income, there are certain rules and conditions you must know to claim it successfully. These include:

• No Age Limit for Dependents: While the deduction amount varies based on the patient's age, there's no age limit for the dependent.

• Actual Expenses: The deduction amount is limited to the actual expenses incurred or the limits mentioned above, whichever is lower.

• Insurance Coverage: If you have health insurance, the amount you receive from the insurance company will be reduced from the eligible deduction amount. For example, if your medical expenses were ₹60,000 and your insurance covered ₹20,000, you can claim a deduction for the remaining ₹40,000 (assuming you are below 60).

• Dependent: A dependent in this context refers to your spouse, children, parents, brothers, or sisters who are wholly or mainly dependent on you for support and maintenance.

• No Specific Income Limit for Dependents: While there is no specific income limit for dependents, it is generally understood that the dependent should not have an independent source of income that can adequately cover their medical expenses.

• Proof of Dependency: While not explicitly stated in the law, it's a good practice to maintain some documentation as a proof of the dependency of the individual for whom you are claiming the deduction. This could include bank statements showing you are supporting them financially or documents showing they are living with you and are primarily dependent on you for their needs.

• No Deduction for Preventive Care: Section 80DDB specifically covers expenses incurred for the treatment of specific diseases. It does not cover expenses for preventive care, health checkups, or general wellness.

• Deduction is Over and Above 80D: It's important to note that the deduction under Section 80DDB is over and above the deduction you can claim under Section 80D for health insurance premiums. 

• No Deduction for Expenses Outside India: Generally, expenses incurred for medical treatment outside India are not eligible for deduction under Section 80DDB. However, there may be exceptions in certain specific cases, so it's best to consult with a tax advisor for more clarity on this.

• No Carry Forward of Expenses: Unfortunately, you cannot carry forward any unused portion of the deduction to the next financial year. The deduction can only be claimed in the year the expenses were actually incurred.

1. What diseases are covered under Section 80DDB?

This section does not cover all ailments. It only covers treatment for neurological diseases, malignant cancers, full-blown AIDS, chronic renal failure, haematological diseases, etc.

2. What is the deduction limit for medical expenses under Section 80DDB?

For people below 60 years of age, you can claim a maximum deduction of ₹40,000. However, for people above 60 years of age, the maximum deductible amount is ₹1 lakh. 

3. Who is eligible to claim deductions under Section 80DDB?

Any individual citizen of India, resident or non-resident, can claim a deduction for themselves or their dependents. Also, a Hindu Undivided Family (HUF) can claim it for any of its members.

4. Can I claim mediclaim under Section 80DDB and other sections simultaneously?

Yes, you can claim other medical-related deductions under other sections but not the ones already claimed under Section 80DDB.

5. What documents are required to claim deductions under Section 80DDB?

A medical certificate must be obtained from a specialist doctor in the relevant field, and they need to attest a 10-I form which needs to be submitted during tax filing. Apart from that, all medical prescriptions, diagnostic test reports, and hospital bills need to be shown to claim a deduction.

6. Are senior citizens eligible for higher deduction limits under Section 80DDB?

Yes, for senior citizens, the maximum deductible amount is ₹1 lakh instead of just ₹40,000.

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