Learn How To Claim Tax Deduction On Cancer Treatment Expenses Under Section 80DDB
All you need to know about claiming tax deductions on your medical expenses.
Medical treatments can be expensive. Even more so when they are for critical illnesses or terminal diseases such as cancer. But what if you could get some monetary relief out of it? Well, with Section 80DDB of Income Tax Act, you can now claim tax deductions for medical expenses of self, spouse, children, parents, siblings and other relatives.
These deductions can be availed for expenses that have actually been incurred on the treatment of specific diseases mentioned in Rule 11DD of Income Tax. Let’s learn how you can claim tax deductions under Section 80DDB and other important details regarding the process.
Tax Deductions Under Section 80DDB
Under Section 80DDB of Income Tax Act, taxpayers are eligible for tax deductions on expenses incurred for the treatment of a set of specified medical conditions or ailments. This can be availed by both individuals and Hindu Undivided Families(HUF). Such deductions are allowed, subject to certain aforementioned conditions and are capped at a specified amount.
Also Read: Income Tax Slabs For FY 2022-23
Ailments Considered For Tax Deductions Under Section 80DDB
Diseases or ailments that are considered for tax deductions under Section 80DDB are mentioned in Rule 11DD of Income Tax. The diseases covered in this section are as follows:
Neurological diseases where the disability level has been certified to be of 40% and above such as Aphasia, Ataxia, Chorea, Dementia, Dystonia Musculorum Deformans, Hemiballismus, Motor Neuron Disease and Parkinson's Disease.
Malignant cancers.
Full-blown Acquired Immuno-Deficiency Syndrome (AIDS).
Chronic renal failure.
Haematological disorders such as Haemophilia and Thalassaemia.
Capped Amount On Tax Deductions Under Section 80DDB
Taxpayers can claim tax deductions on medical expenses under Section 80DDB under Chapter V1-A upto a certain capped amount. This amount differs according to the patient’s age on whom the treatment has been done. Given below are the specifics for the same:
If the patient is below 60 years of age, the amount is capped at the actual amount being paid for the treatment or a sum of ₹ 40,000, whichever amount is less.
If the patient is a Senior citizen i.e. between 60-80 years of age or a Super Senior citizen aged 80 years or more, the amount is capped at the actual amount being paid for the treatment or a sum of ₹ 1,00,000, whichever amount is less.
How To Claim Tax Deduction Under Section 80DDB
According to Rule 11DD of the Income Tax, all an assessee has to do to claim tax deductions for medical expenses under Section 80DDB, is to provide a certificate acquired from a specialist doctor. The doctor could be employed in either a government-run hospital or a privately owned hospital. Various diseases mentioned in the rule require certificates from various specialist doctors as specified below:
Neurological diseases - A Neurologist who has a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree.
Malignant cancers - An Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree.
AIDS - Any specialist who has a post-graduate degree in General or Internal Medicine, or any equivalent degree.
Chronic renal failure - A Nephrologist who has a Doctorate of Medicine(D.M.) degree in Nephrology or any equivalent degree.
Haematological disorders - A Haematologist who has a Doctorate of Medicine (D.M.) degree in Haematology or any equivalent degree.
Please ensure that all the degrees mentioned above should be recognised by the Medical Council of India. Only then will your certificate hold enough value to get you tax deductions.
Specifications On The Medical Certificate
Earlier, one was required to submit doctor’s prescriptions or certificates in Form 10-I. However, since Assessment Year 2016-17, now you can directly get a certificate/prescription from the specialists mentioned above. Given below are some details that need to be clearly mentioned on your certificate:
Name of the patient
Age of the patient
Name of disease or ailment
Name, address, qualification and registration number of the specialist prescribing the certificate.
If the treatment is/was done in a government hospital, mention the name and address of the government hospital.
This form must then be duly signed by the head doctor in the hospital as per the respective case. You can submit this while filing your taxes under Section 80DDB to avail Income Tax Exemption for cancer patients. You can also use this same process to get tax deductions for other mentioned diseases.
