Understanding 80ddb: A Comprehensive List of Diseases Eligible for Medical Treatment
If you have a life-threatening illness or a severe physical disability, you would know that medical expenses can quickly spiral out of control. In India, there is a provision under Section 80ddb of the Income Tax Act, 1961, which provides tax deductions on medical expenses. The provision covers specific diseases, expenses incurred on treatment, and the amount covered under insurance. However, to avail of the financial benefits, it’s essential to understand the intricate details of 80ddb.
In this article, we break down the concept of 80ddb and provide a comprehensive list of diseases that make you eligible for medical treatment.
What is 80ddb?
Section 80ddb of the Income Tax Act, 1961, is a deduction provision that allows taxpayers to claim a deduction on expenses incurred for the treatment of specified diseases or ailments. The deduction can be claimed by an individual or their dependents.
Who is eligible for 80ddb?
To claim a deduction under 80ddb, the following eligibility criteria must be met:
– The deduction can be claimed for specified diseases or ailment, which cover any severe health condition or physical disability.
– The individual claiming the deduction must be a resident Indian.
– The expenses incurred on treatment should be paid by the individual or their dependents.
What are the diseases eligible for 80ddb?
The following is a comprehensive list of diseases that make you eligible for medical treatment under Section 80ddb:
1. Neurological Diseases – Parkinson’s disease, Dementia, Ataxia, Aphasia, Motor Neuron Disease, and Chorea.
2. Malignant Cancers – Cancer of any organs or part of the body.
3. Hematological Disorders – Lymphoma, Leukaemia, and Myeloma.
4. Renal Failure – Kidney failure, including deposits of amyloid in the kidney.
5. Chronic Kidney Disease – Nephrotic syndrome and nephritis.
6. End-Stage Liver Disease – Cirrhosis, liver failure, and other conditions that severely affect liver function.
7. Hemophilia – A genetic disorder that impairs blood clotting.
8. Thalassemia – A blood disorder that causes mild to severe anemia.
9. AIDS – Acquired Immune Deficiency Syndrome.
10. Chronic Obstructive Pulmonary Disease – A long-term lung disorder that encompasses bronchitis and emphysema.
11. Dwarfism – A genetic disorder that causes abnormal skeletal growth and short stature.
12. Heart Disease – Any heart condition that may require surgery or major medical treatment.
What are the expenses eligible for 80ddb?
Under Section 80ddb, the following expenses incurred on treatment are eligible for tax deductions:
– Fees paid to a neurologist, hematologist, or oncologist.
– Cost of medicines and drugs consumed during the treatment.
– Fees for services availed in a private hospital or nursing home.
– Cost of senior citizen health check-ups.
– Payment of insurance premiums for medical purposes, including critical illness policy.
What are the limits of deductions under 80ddb?
The limit of deduction under 80ddb depends on various factors like the age of the person, the severity of the disease, and the expenses incurred. The following are the limits of the deduction:
– If the person affected is below 60 years of age, a deduction of up to Rs 40,000 can be claimed.
– If the person affected is over 60 years of age but below 80 years of age, a deduction of up to Rs 1 lakh can be claimed.
– If the person affected is over 80 years of age, a deduction of up to Rs 1.6 lakhs can be claimed.
Conclusion
Medical illnesses and disabilities can drain your finances, leaving you with little or no savings. Understanding Section 80ddb can help you claim deductions on expenses incurred on treatment and make it easier to manage medical costs. This deduction provision has been designed to benefit individuals who require constant monitoring and comprehensive medical treatment. By adhering to the eligibility criteria and keeping accurate records of expenses incurred, you can claim deductions that will help you save significant amounts on tax.
