Section 80DDB : Deduction in respect of Medical Treatment, etc.- to what extent available

Deduction under Section 80DDB is allowed in respect of any expenditure actually incurred for the medical treatment of the following persons for such disease or ailment as may be specified in the rules made in this behalf by the Board:

Essential conditions for claiming deduction under this section:

(1)        Deduction is available to a person who is—

(a)        resident in India, and

(b)        is either an individual or HUF.

(2)        Deduction is allowed in respect of any expenditure actually incurred for the medical treatment of the following persons for such disease or ailment as may be specified in the rules made in this behalf by the Board:

In the case of individual          –           for himself or a dependant

In the case of HUF                   –           for any member of the HUF

(3)        No deduction under section 80DDB shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed.

Quantum of Deduction under Section 80DDB:

Amount actually paid or Rs.40,000, whichever is less.

However, if the person for whom such expenditure is incurred happens to be a senior citizen, the maximum deduction shall be allowed for a sum of Rs.1,00,000 instead of Rs.40,000.

In other words, the deduction in this case shall be actual amount incurred or Rs.1,00,000, whichever is less.

Further, if any amount is received under an insurance from the insurer or reimbursed by an employer for the medical treatment of the person mentioned in point (2) above, the amount so received shall be reduced from the deduction allowable under this section.