No one likes being ill. Nor does anyone want their family members to be ill. After all, when sickness comes, it not only brings pain and discomfort, but also a big medical bill. Keeping these expenses in mind, the Indian Income Tax Act's section 80 DDB, allows certain tax deductions you can claim when you spend towards treatment of certain diseases. To know more, read on.
Who: You can claim this deduction for treatment of self or dependents like your spouse, children, parents and sibling (brother and sister) who are wholly dependent on you. Even a Hindu Undivided Family can claim a deduction under this section for treatment of certain illnesses of their members.
How much: If you are less than 65 years old during the previous year, then the deduction limit is Rs40,000; if you are a senior citizen (more than age 65), then the deduction limit is Rs 60,000.
Keep in mind that the amount for which you get a deduction will be the amount actually paid, or the respective limit (as per your age), whichever is lower. So, if you are 50 years old and paid Rs 35,000 for the treatment, then you can claim Rs 35,000 and not the limit of Rs 40,000.
What ailments: Diseases which need the services of a neurologist, an oncologist, a urologist, a haematologist (blood diseases), an immunologist or such other specialists are the diseases covered here. So, if you or anyone in your family (dependents) have aliments like renal disease, thalassaemia, any type of cancer, or neurological diseases, and you've paid for the treatment, you qualify for deduction.
Things to keep in mind: You will have to provide a certificate from a specialist working in a government hospital as proof of the specified disease. Also, if you've got reimbursements for the treatment from your employer or your insurance company, you cannot claim the deduction. But, if you've got only a part of the entire amount, you can claim the balance amount as deduction.
Kiran Telang, Mumbai-based Certified Financial Planner, said: "Not many people are aware of this deduction. Also, the deduction limits are low. But, if you do qualify for this deduction, you should take it, even if it has a negative tone to it." The truth is, no one would even like to qualify to claim for this deduction, but, if you are someone who is suffering or has a family member suffering for any specified ailments, it's best you claim this deduction. After all, a deduction reduces your total taxable income and you are able to save some money. After all, you can use the tax savings amount to get better quality treatment for the patient.
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Updated Date: Dec 20, 2014 21:06:37 IST