Deduction in respect of medical treatment etc. under section 80DDB of Income Tax Act, 1961.
The conditions for this deduction are as follows:
- This deduction is allowed to an individual or HUF who is resident of India.
- If they have incurred during the previous year, or actually paid any amount for the medical treatment of such disease or ailment as may be prescribed in the rule made in this behalf by the board.
- The expenditure must be incurred for himself or a dependent, in case the assessee is an individual.
- The expenditure may be incurred for any member of HUF, in case the assessee is HUF.
- In the case of an individual, the spouse, children, parents, brothers and sisters of the individual.
- In the case of a Hindu undivided family, any member of the Hindu undivided family.
- Dependent wholly or mainly on such individual or Hindu undivided family for his support for his support and maintenance.
Rate of deduction: – The assessee shall be allowed a deduction of
- The amount actually incurred or a sum of Rs. 40000, whichever is less, in respect of the previous year in which such amount was actually paid.
- Where the amount actually paid is in respect of the assessee or his dependent or any member of a Hindu undivided family of the assessee and who is a senior citizen, the deduction under this section shall be allowed Rs.60000. senior citizen means an individual resident in India who is of the age of sixty five years or more at any time during the relevant previous year.
- The deduction under this section shall be reduced by the amount received, if any, under insurance from an insurer, or reimbursed by the employer, for the medical treatment of the person referred above.
- No such deduction shall be allowed unless the assessee furnishes with the return of income, a certificate in such form as may be prescribed, from a neurologist, oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed, working in a Government hospital.
Notified diseases under section 80DDB are as under:
- Neurological diseases
- Dystonia Musculorum Deformans
- Motor neutron disease
- Parkinson’s Disease