The Income Tax Act has a section that allows a deduction from income, in respect of any expenditure incurred by an assessee towards treatment any disease or ailment which is specified under Rule 11DD. Thus where a resident assessee has incurred any expenditure for medical treatment of specified disease, for himself or a dependant, such assessee shall be allowed a deduction, under section 80DDB, in the year in which such amount was paid.
Any person who is an individual or an HUF and is a resident in India shall be allowed to claim deduction under this section. The deduction shall be allowed if such expenditure is incurred by an individual for self or a dependant and in case of an HUF, where such expenditure has been incurred for any member of the HUF.
Amount of Deduction
Under this section, an assessee can claim a deduction of the actual amount paid towards the treatment or Rs. 40,000/- whichever is less. However, if such expenditure is incurred towards the treatment of any individual or a member of HUF, who is a senior citizen, the actual amount paid or Rs. 100,000/- whichever is less shall be allowed as deduction. Senior Citizen shall be a person who is of age 60 years or more. Such amount shall be further deducted if the assessee receives any amount under any insurance or reimbursements.
Definition of a dependant
In case of an individual, dependant means spouse, children, parents, brother, or sister. In case of an HUF, any member of the HUF mainly dependant on the family is considered as a dependant.
To claim deduction under Section 80DDB, an assessee shall have to obtain a certificate/prescription for such medical treatment from a neurologist, oncologist, hematologist, urologist, or immunologist as applicable. This prescription/certificate should specify the name and age of the patient and the disease or ailment that he/she is suffering from. It should also specify the professional details of the specialist issuing the prescription/certificate, such as name, address, registration number, and qualification. In case, where the treatment is being carried on in a Government Hospital, the name and address of such hospital shall also have to be stated. In case of a private hospital, the name and address of such private hospital is not required.
For the reader’s ease, attached is the list of diseases/ailments specified in Rule 11DD of Income Tax Act.
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