How to claim income tax deductions on your medical treatment

Amount paid for medical treatment of certain specified diseases can be claimed as tax deduction under section 80DDB of income tax act 1961.

Before discussing how to claim income tax deduction on your medical treatment let us understand different provisions of section 80DDB.How to claim income tax deductions on your medical treatment

Applicability of section 80DDB

Section 80 DDB is applicable to following persons. As per this section, only these peoples can claim tax deduction on medical treatment expenses that they paid during the previous year.

  • Individual
  • HUF

Individual includes those persons who are getting salary from their employer, all self employed peoples and others who are taxable individually. HUF means Hindu undivided family.

To claim deduction under section 80DDB, such individual has to pay medical expenses for treatment of following persons during the previous year;

  • Self
  • Spouse
  • Children
  • Parents
  • Brothers and sisters of individual or any of them

To claim deduction under section 80DDB, you must have paid for medical treatment during the previous year. If it has been incurred and not paid during the previous year then are not eligible for deduction.

In case of HUF, deduction under section 80DDB can be claimed if it is paid for any member of HUF.

Quantum of tax deduction under section 80DDB

Deduction under section 80DDB is lower of following;

  • Amount paid for medical treatment during the previous year or
  • Rs. 40, 000

This section has also specified that Rs. 40, 000 will be increased to Rs.60, 000 if the person is a senior citizen. A person will be called senior citizen who is of aged 60 years or more during the previous year.

Maximum limit of Section 80DDB tax deduction, will increase to Rs 80000 for very senior citizens. If during the previous year medical expenses are incurred for a very senior citizen who is 80 years or more then a higher deduction up to Rs 80000 will be allowed to the assessee who has paid it. Rs 80000 tax deduction will be applicable from the financial year starting 1st April 2015.

However, deduction under section 80DDB shall be reduced by the amount that is received under insurance from an insurer or reimbursed by an employer for medical treatment of any of the above mentioned persons.

Steps to get deduction for medical treatment – Section 80DDB

Section 80DDB does not specify steps for getting tax deduction but having gone through income tax act we have listed following steps for you to know the step for claiming income tax deduction under section 80DDB;

  • Rule 11DD has specified certain diseases which are allowed as tax deduction under section 80DDB. You have to look for your diseases to know whether your disease has been listed or not. If yours is in that list then amount paid for medical treatment of that disease is allowed as deduction under section 80DDB.
  • Get certificate from a medical practitioner working in a government hospital by specifying the disease in specified format.
  • Provide copy of the certificate and medical treatment bills to your employer while giving self IT declaration at the year end. Your employer will be taking care of these expenses while calculating TDS from your salary. If you are not into a job then you can claim tax deduction under section 80DDB directly while filling your tax return at the year end and you are not required to send your bills and certificate copy to tax department. However in both cases we urge you to keep the originals as it may be required at any moment by tax department for verification.

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