The Income Tax Act in India provides taxpayers with many deductions and exemptions which helps in reducing tax liability and planning the taxes more effectively. As the income tax act is comprehensive, there are many deductions that go unnoticed or about which taxpayers are unaware. One of them is section 80DDB which gives tax deductions on medical expenses incurred on specified diseases and ailments. Let’s understand what section 80DDB is and how deduction under this section can be claimed.

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What is Section 80DDB?

Section 80DDB of the Income Tax Act states that if an individual or a HUF (Hindu Undivided Family) incurs medical expenditures for the treatment of a specific sickness or ailment, such expense is eligible as a deduction, subject to certain requirements and capped at the sum indicated.

Following are the specific disease and ailments which are covered under the section:

1. Neurological Diseases where the disability level has been certified to be 40 per cent and above

-Dementia

-Dystonia Musculorum Deformans

-Motor Neuron Disease

-Ataxia

–Chorea

-Hemiballismus

-Aphasia

-Parkinson's Disease

2. Malignant Cancers

3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

4. Chronic Renal failure

5. Hematological disorders

-Hemophilia

-Thalassaemia

Who is eligible to claim a deduction under 80DDB?

This deduction can only be claimed by HUF and Indian individuals, it should be noted that Non-resident Indians cannot claim this deduction. Further, it is imperative that deduction can be claimed only by the person who has actually incurred the expenses.

How much deduction can be claimed under section 80DDB?

Taxpayers below 60 years can claim a deduction of up to Rs 40,000 and taxpayers above 60 years of age can claim a deduction of Rs 1 lakh for medical expenses.

How to claim a deduction under section 80DDB?

To claim a deduction under this section, taxpayers will have to provide a hard copy of their medical certificate. For this, a medical certificate should have been issued by the Central or State Government Medical Board giving information about the disease.

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