Deduction u/s 80DDB in respect of medical treatment

Tax planning 4870 views 6 replies

BALASUBRAMANYA B N

CCI STUDENT....

44687 Points Joined January 2009

I am a central Govt. retired pensioner aged 66 yrs.My wife aged + 60 yrs is suffering from Brain Tumor(Cancer) and undergoing chemotherapy treatment in Private cancer hospital . No medical reimbursement facility available to me.

Please clarify/tell me whether I will be eligible to claim deduction of Rs.60,000/- under section 80 DDB on account of expenditure actually incurred on the medical treatment of such disease or ailment as may be specified in the rules 11 DD.Due to receipt of revised pension arrears I am coming in income tax deduction zone as pension + arrears will be around Rs.3,39,000/-.
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To claim deduction u/s 80DDB following condition should be satisfied.

Taxpayer should be resident in India in the previous year.
Deduction is available to Individual or HUF only.
Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.
Expenditure should be incurred for medical treatment of
1. assessee himself
2. wholly/mainly dependent Husband/wife(spouse)
3. wholly /mainly dependent children
4. wholly/mainly dependent parents
5. wholly/mainly dependent Brother
6. wholly/mainly dependent Sisters
7. in case of Huf ,wholly/mainly dependent member of the HUF
Assesee shall have to submit certificate in form no 10-I from prescribed specialist working in Government hospital
Government hospital includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;

Amount of Deduction:

Deduction is available for Rs. 40000 or amount actually paid ,which ever is less.
If expenditure has been done in respect of dependent who is at least of 65 year of age in any time during the previous year then deduction shall be Rs. 60000 or amount paid which ever is less.
deduction Amount as arrived in above (1) or (2) will be reduced by amount reimbursed by employer or by insurer.

Specified diseases and ailments for the purpose of deduction under section 80DDB.

(

i) Neurological Diseases where the disability level has been certified to be of 40% and above,

(a) Dementia ;

(b) Dystonia Musculorum Deformans ;

(d) Ataxia ;

(e) Chorea ;

(f) Hemiballismus ;

(g) Aphasia ;

(h) Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

On the Basic of facts given by you ,you are eligible to for deduction of Rs 40000 only.Enhanced Limit of 60000 is available if dependent /patient is senior citizen (attain age 65 in previous year ) not assesse who is is claiming the deduction.in your case your age is 66 ,However your wife's age is just 60 ,so you are eligible for only 40000 deduction or expenses incurred which ever is less.

Moreover the above said amount will be reduced by the amount reimbursed by employer/Insurance company .In your case this is nil.so you will get 40000 or expenses incurred ,which ever is less as deduction u/s 80DDB of the Income Tax Act.

Replies (6)

shailesh agarwal

professional accountant

7647 Points Joined September 2008

good information-of it

Sameer Medhekar

Student

4140 Points Joined April 2008

Useful for Studies Thanks for that

Rishi

Manager

44 Points Joined January 2010

Originally posted by : Balasubramanya
	------------------------------------------------------------------------- To claim deduction u/s 80DDB following condition should be satisfied. Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.

Can you clarify where this is stated ?

From what I read in the clause it states that "

Where an assessee who is resident in India has, during the previous year, actually incurred any expenditure for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board--

(a) for himself or a dependant relative, in case the assessee is an individual; or

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of a sum of forty thousand rupees in respect of that previous year in which such expenditure was incurred:"

It doesn't specify that only the amount spent will be allowed for deduction.

Shudhanshu Agrawal

Business

2570 Points Joined May 2008

Originally posted by : Rishi
	Originally posted by : Balasubramanya ------------------------------------------------------------------------- To claim deduction u/s 80DDB following condition should be satisfied. Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed. Can you clarify where this is stated ? From what I read in the clause it states that " Where an assessee who is resident in India has, during the previous year, actually incurred any expenditure for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board-- (a) for himself or a dependant relative, in case the assessee is an individual; or (b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family, the assessee shall be allowed a deduction of a sum of forty thousand rupees in respect of that previous year in which such expenditure was incurred:" It doesn't specify that only the amount spent will be allowed for deduction.