This year when you file your returns, make sure that you are availing maximum benefits which has been offered by the IT Department of India. In this article, we will be discussing the range of deductions which a tax payer can get under Section 80DDB. So, let’s get started!
What is Deduction 80DDB?
Before you can start computing your deduction under section 80DDB, you first need to understand what exactly Section 80DDB is. This section mainly deals with offering deduction to tax payers who have incurred expenses with respect to medical treatment. The nature of treatment includes expenses made on Cancer Treatment, Aids, etc.
Deduction 80DDB Eligible Amount
Expenditure or Medical Treatment of assess/dependant relative [Sec. 80DDB]: Deduction for the amount of expenditure incurred or Rs. 40,000, (Rs. 1,00,000 [w.e.f. 1-4-2019 A.Y. 2019-20] (Rs.60,000 for A.Y.2018-19) whichever is less, is allowable for any year during which expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assesses himself or a dependent relative.
In case the patient is a resident senior citizen 60 years or more (omitted w.e.f. 1-4-2019 i.e. 2019-20)
Rs. 80,000 in case the patient is a resident very senior citizen 80 years or more.
|Status||Deduction under Section 80DDB (INR)|
|Ordinary||40, 000 / 60,000 (A.Y. 2018-19) / 1,00,000 (A.Y.2019-20)|
|Senior Citizen||60, 000 (Omitted w.e.f. 1-4-2019 i.e A.Y.2019-20)|
|Very Senior Citizen||80, 000|
Deduction 80DDB Conditions
Deduction under Section 80DDB is available to individuals as well as HUFs if the following conditions are satisfied.
Condition 1- Deduction will be available only when the tax payer is able to show medical prescription and bills for which he is claiming the benefit. Without any proof of payment to a professional, no deduction will be available.
Condition 2– Payment for Medical treatment of children, spouse, dependent or any other family member of a HUF is included. If expenses for medical treatment includes treatment of a very senior citizen, then deduction will be eighty thousand rupees.
These conditions will become effective from 1 April 2016 and will allow the tax payers to enjoy deductions with respect to the expenditure made on medical grounds. However, one should remember to maintain a track record of the collective expenses made for medical treatment along with keeping the prescriptions. Without any legitimate proof of payment, the IT Department can refuse to offer the deductions under Section 80DDB.