Introduction:

Section 80DDB of the Income Tax Act, established by the Indian government as a tax-saving provision, allows taxpayers to deduct expenses associated with various ailments. This provision encompasses both personal expenditures and those of a taxpayer’s dependents, including their spouse, children, and parents. It’s important to note that this deduction is applicable only to individuals recognized as regular residents of India, as per the records of the Income Tax Division. Delve deeper into this subject to understand its potential benefits for taxpayers.

Section 80DDB allows deductions for specified disease-related expenses, applicable to taxpayers and their dependents, but eligibility requires Indian residency confirmation by the Income Tax Division.

Deductions Available under Section 80DDB:

• Indian residents or Hindu Undivided Families (HUFs) are eligible to claim deductions under section 80DDB for medical expenses incurred on specified diseases. The amount of deduction permissible under 80DDB hinges on two key factors: the patient’s age and the total expenditure incurred.
• Individuals under 60 years of age can claim an 80DDB deduction of up to Rs. 40,000, or the actual amount of expenditure incurred, whichever is lesser.
• Individuals aged 60 and above can anticipate a tax deduction of up to Rs. 1 lakh on medical expenses incurred for specified diseases.
• Individuals or Hindu Undivided Families (HUFs) qualify for a deduction under Section 80DDB of the Income Tax Act if they have accrued medical expenses for treating a specific illness or ailment. Nevertheless, the deduction is limited and subject to a maximum threshold.

Eligibility:

Taxpayers must satisfy the specific parameters outlined below to be eligible for tax deductions under section 80DDB:

• The taxpayer can be either an individual or a member of a Hindu Undivided Family (HUF) and must be a resident of India.
• Deductions under Section 80DDB can be claimed for treating specified ailments for oneself or dependent family members, such as children, siblings, spouse, and parents.

Diseases Covered under 80DDB:

Below are the diseases or ailments covered by this specific provision of the Income Tax Act, 1961:

• Neurological diseases qualify if certified by a Neurologist with a D.M. degree indicating a disability level exceeding 40%.
• Dystonia Musculorum Deformans 
• Chorea 
• Motor Neuron Disease 
• Parkinson’s Disease 
• All forms of malignant cancers certified by an Oncologist are eligible.
• Thalassaemia
•  Chronic renal failure as certified by a Nephrologist 

specialists authorized to provide certification under 80DDB.

• A specialist employed at a private hospital must hold a validated degree in their field of specialization accredited by the Medical Council of India.

• For specialists employed in a government hospital, it is required that they possess a general post-graduate degree, internal medicine degree, or a similar qualification, all of which must be validated by the Medical Council of India.

Details  included in the Certificate :

The certificate must include the following details as per the guidelines set by the income tax department:

• Name of the patient
• Age of the patient
• Name of the ailment or the disease in question
• Details of the specialist
• Name
• Address
• Qualification
• Registration Number

 Methods of obtaining a certificate:

• The certificate can be obtained from specialists in specific medical conditions.

• Individuals receiving treatment at a government hospital must procure a certificate from a specialist employed full-time at that hospital. Furthermore, this specialist must possess a postgraduate degree in general medicine or an equivalent qualification recognized by the Medical Council of India.

• If an individual is undergoing treatment in a government hospital, it is necessary to provide the name and address of the hospital.

Conditions for deductions:

• The policy must be issued in the name of the assessee and should be a life insurance policy, not a health insurance policy.

• If the disabled person passed away before the taxpayer, the policy amount was refunded to the designated beneficiary. Consequently, the refunded amount is considered as income and is taxable for income tax purposes.

• In the event of an unexpected death, the plan will provide a single lump sum payment as a death benefit to the disabled dependent.

• Taxpayers are required to submit a hard copy of the medical certificate indicating the disability issued by the central or state government medical board.

Final Word:

Having familiarized yourself with all the particulars concerning Section 80DDB of the Income Tax Act, 1961, you’re better positioned to minimize significant expenses on medical treatments. Ensure to accurately include all pertinent details when filing your annual income tax returns to claim the 80DDB deduction and reap its benefits.