Understanding the Benefits of 80DDB for Specified Diseases
If you or someone you know has been diagnosed with a severe disease, you’re likely aware of how expensive treatment can be. In such cases, the government of India provides support through various schemes and benefits. One such benefit is Section 80DDB of the Income Tax Act, which allows for tax deductions on expenses incurred for the treatment of specified diseases. In this article, we will delve into the nuances of this section and how it can benefit you.
What is Section 80DDB?
Section 80DDB is a provision in the Income Tax Act that allows for tax deductions on expenses incurred for the treatment of specified diseases. This deduction can be claimed by the person who has been diagnosed with the disease or by the person who is bearing the treatment expenses of the patient.
Which diseases are covered under 80DDB?
Section 80DDB covers a range of specified diseases. These include Parkinson’s disease, malignant cancers, AIDS, and chronic renal failure, among others. The full list of diseases covered under 80DDB is available on the Income Tax Department’s official website.
What expenses are eligible for deduction under 80DDB?
The expenses that are eligible for deduction under 80DDB are medical expenses incurred for the treatment of specified diseases. This includes expenses incurred on hospitalization, diagnosis, and treatment. However, expenses incurred on buying medicines or equipment are not eligible for deduction under this section.
How much deduction can one claim under 80DDB?
The amount of deduction one can claim under 80DDB depends on various factors. If the patient is below the age of 60 years, the maximum deduction is Rs. 40,000. If the patient is above 60 years, the maximum deduction is Rs. 1,00,000. However, if the treatment expenses are reimbursed by an insurance company, the deduction amount will be reduced by the amount of reimbursement received.
How to claim deduction under 80DDB?
To claim deduction under 80DDB, the patient or the person who is bearing the treatment expenses must first obtain a certificate from a specialist doctor. This certificate should state the name, age, and address of the patient, the name of the disease, and the details of the treatment. The doctor should also mention the amount of money spent on the treatment.
Conclusion
Section 80DDB provides much-needed relief to patients suffering from specified diseases. By claiming deduction under this section, one can significantly reduce the burden of medical expenses. It is, therefore, crucial to be aware of this provision and take maximum advantage of it. Remember to keep all the relevant documents and receipts in order to claim the deduction when filing your income tax returns.
