Understanding the Eligibility Criteria of Section 80DDB for Specified Diseases
Under section 80DDB of the Income Tax Act, an individual is eligible to claim a deduction for the expenses incurred due to the treatment or care of specified diseases. The deduction is available to both salaried individuals as well as self-employed individuals or professionals.
What are the Specified Diseases?
The specified diseases under section 80DDB are as follows:
– Neurological Diseases such as Parkinson’s, Dementia, and Ataxia
– Malignant Cancers
– Chronic Renal Failure
– Hematological Disorders
– AIDS
Eligibility Criteria
In order to claim a deduction under section 80DDB, an individual needs to meet the following eligibility criteria:
– The deduction can be claimed by an individual for himself, his spouse, dependant parents, or dependant children.
– The individual must have incurred the expenses for the treatment of one of the specified diseases mentioned under the section.
– The medical expenses should have been incurred for the treatment of the specified disease at a hospital that is registered with the government.
– The expenses must have been incurred during the financial year for which the deduction is being claimed.
Amount of Deduction
The amount of deduction that an individual can claim under section 80DDB varies depending on the age of the person for whom the expenses have been incurred. The following table shows the amount of deduction that can be claimed:
Age of Person for whom the Expenses have been Incurred |Amount of Deduction
———————————————————–|——————
Below 60 years |Rs. 40,000
60 years or above but below 80 years |Rs. 1,00,000
80 years or above |Rs. 1,00,000
Documents Required
In order to claim a deduction under section 80DDB, an individual needs to submit the following documents:
– A certificate from a doctor who is treating the specified disease. The certificate should mention the name of the patient, the type of disease, and the treatment that has been undergone.
– An invoice or receipt from the hospital where the treatment has been undergone. The invoice should mention the name of the patient, the type of disease, the amount of expenses incurred, and the registration number of the hospital.
Conclusion
The deduction under section 80DDB provides a relief to individuals who have incurred expenses for the treatment of specified diseases. With the help of this deduction, individuals can reduce their tax liability and save money on medical expenses. It is important to note that the deduction can only be claimed if the expenses have been incurred at a registered hospital and all necessary documents have been submitted at the time of filing tax returns.
