Section 80DDB Deductions leading to Savings

Section 80DDB – Diseases Covered & Deductions Allowed

Under Section 80DDB, taxpayers having dependents with specified diseases(mentioned below) can claim deductions up to ₹1 Lakh for payment made towards the treatment.

Diseases covered under Section 80DDB

  • Neurological Diseases – 40% or more severity – Dementia, Ataxia, Chorea, Aphasia, Dystonia Musculorum Deformans, Motor Neuron Disease, Hemiballismus and Parkinson’s Disease
  • Malignant Cancers
  • AIDS (Acquired Immuno Deficiency Syndrome)
  • Chronic Renal Failure
  • Hemophilia & Thalassaemia – Hematological Disorder

Taxpayer needs to get a certificate from a specialist(Doctorate of Medicine(D.M.))recognised by Medical Council of India.

Dos & Donts to Claim Section 80DDB Deductions

  • Taxpayer needs to get a certificate as mentioned above
  • Certificate from both private & government hospital are valid
  • Certificate must have – name of patient, age, name of disease, details of the specialist like name, agem qualification etc. and hospital address
  • Can be claimed by individual or HUF and a resident Indian only
  • Only allowed when the money is spent on the treatment of diseases specified above
  • Any insurance or support received from employer has to be deducted from the allowed deduction amount

Actual deductions allowed under Section 80DDB

  • ₹40,000 or the amount paid towards treatment, whichever is lower
  • ₹1 Lakhor amount paid towards treatment, whichever is lower – only for senior citizens

As you can see that to claim the full benefit you need to maintain a lot of medical receipts, discharge summaries and invoices. It is very difficult to keep track of all these documents manually. With Sorted AI you can automate the organizing of documents and get prompt reminders for checkup and medicine purchase.

Deductions under Section 80DDB are over and above the deductions under Section 80D (health insurance) and come under Section 80 Deductions.

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