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Claiming Medical Expenditure under Sec 80DDB of the IT Act made easy

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In continuation of the commitment made during the Budget Speech of 2015-16, the government has now made certain changes to the process of claiming medical expenditure under Sec 80DDB of the IT Act. The process has been made easier now.

In his budget speech for the year 2015-16, Finance Minister Arun Jaitley announced certain benefits in claiming medical expenditure under section 80DDB of the Income Tax Act (IT Act).  He announced increase in the limits of the amount that can be claimed under this section.

This particular section allows a deduction for expenditure incurred on treatment of specified ailments for self or a dependent.  The government has now issued a notification amending rule 11DD of the IT Rules making it easier to claim such expenditure.

Claiming Medical Expenditure under Sec 80DDB

 Under this section, the assessee will now be allowed a deduction of actual amount or Rs 40,000 (whichever is less) in case of normal citizens for certain ailments. These limits are higher for Senior & Very Senior citizens as noted below.

Type of Assessee or DependentMax. amount that can be claimed (In Rs)
Normal Assessee40,000
Senior Citizen (60 years & above)60,000
Very Senior Citizen (80 years & above)80,000

 

The following ailments or diseases will be eligible for the purpose of this section

  • Neurological Diseases where the disability level has been certified to be of 40% and above
    • Dementia
    • Dystonia Musculorum Deformans
    • Motor Neuron Disease
    • Ataxia
    • Chorea
    • Hemiballismus
    • Aphasia
    • Parkinsons Disease
  • Malignant Cancers
  • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
  • Chronic Renal failure
  • Hematological disorders
    • Hemophilia
    • Thalassaemia

 Process made easier

The government has now issued a notification amending rule 11DD of the IT Rules making it easier to claim such expenditure. Earlier, the prerequisite condition for claiming expenditure under this section was obtaining a certificate from a specialist working in a Government hospital. Now this condition is relaxed and henceforth, it will not be mandatory to obtain a certificate from a specialist working in a Government hospital.

As per the amended rules, it will be enough if the certificate is obtained from a doctor with a relevant Doctorate of Medicine (DM) degree recognized by the Medical Council of India (MCI).

Type of AilmentPrescription or Certificate to be issued by
Neurological DiseasesNeurologist having a DM degree in Neurology or any equivalent degree, recognised by the MCI
Malignant CancersOncologist having a DM degree in Oncology or any equivalent degree, recognised by the MCI
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)Specialist having a post-graduate degree in General or Internal Medicine or any equivalent degree, recognised by the MCI
Chronic Renal failureNephrologist having a DM degree in Nephrology or a Urologist having a Master of Chirurgiae(M.Ch.) degree in Urology or any equivalent degree, recognised by the MCI
Hematological disordersSpecialist having a DM degree in Hematology or any equivalent degree, recognised by the MCI

 

If the patient is receiving the treatment in a Government hospital, the prescription or certificate  may be issued by any specialist working full-time in that hospital and having a post- graduate degree in General or Internal Medicine or any equivalent degree, which is recognized by the MCI.

The Prescription or the certificate issued should contain the following,

    • Name and Age of the patient
    • Name of the disease or ailment
    • Name, address, registration number and the qualification of the specialist issuing the prescription
    • Name and address of the Government hospital if the treatment is being received in a government hospital.

 

Featured Image: By Mercurywoodrose (Own work) [CC BY-SA 4.0], via Wikimedia Commons

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