Expenses on Chronic Disease can be claimed as deduction from Total Income
(Section 80DDB of the Income Tax Act)
80DDB provides for deduction of expenses incurred on medical
treatment of certain specified disease. A big amount of money is
spent on trearment of ailments of special attention. Attention is paid
to this aspect in Income Tax too through Section 80DDB.
What does Section 80DDB say-
Section 80DDB allows
deduction of expenses incurred on medical treatment of certain
specified disease for the assessee himself or his/her dependent.
amount spent on medical treatment of such specified disease or ₹
40000 whichever is less is eligible for deduction from the taxable
income for the previous year in which expenses are actually paid.
For senior citizens the amount deductible is ₹ 60000 or actual expenses whichever is less.
From financial year 2015-16u/s
80DDB a higher amount of deduction is allowed of expenses incurred
on medical treatment of super senior citizens (80 years of age or more)
for certain specified disease.
The amount of deduction is actual amount spent or ₹ 80000 whichever
Points of Section 80DDB:
Dependent: For the purpose of Section 80DDB dependent means
Certificate from the specialist of a Government Hospital:
Budget 2015 had waived the need of a certificate of Government Hospital. From financial year 2015-16 a prescription
from the specialist doctor will be sufficient for claiming the
Expenses reimbursed by employer will not be allowed:
If the expenses on eligble medical treatment are under an insurance or
are reimbursed by the employer, then in such case the amount of the
eligible deduction be reduced by the amount so received from insurer or
reimbursed by employer.