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Deductions under Section 80DDB

Contents

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The Section 80DDB deduction is with reference to medical expenses incurred on self or dependents.

Dependents are defined as –

  • For individual assessee – Self, spouse, children, parents, brothers or sisters.
  • For HUF – any member of the HUF

1. Deductions with respect to expenses on any dependent below the age of 60 is Rs. 40,000.

2. Deductions for expensed incurred on account of senior citizens (age 60-80years) is Rs. 60,000. The limit has been increased to Rs. 1,00,000 in budget 2018.

3. Deductions for expenses incurred for very senior citizens ( above 80 years) is Rs. 80,000. The limit has been increased to Rs. 1,00,000 in budget 2018.

The applicable deduction will be reduced by the amount of insurance received from the insurer or reimbursement from the employer towards the medical expenses incurred.

The diseases for which expenses are made and deductions can be made are as specified in Rule 11DD –

1. Neurological diseases where the level of disability has been certified to be of 40% and above –

a. Dementia
b. Dystonia Musculorum Deformans
c. Motor Neuron Disease
d. Ataxia
e. Chorea
f. Hemiballismus
g. Aphasia
h. Parkinson’s Disease

2. Malignant Cancers

3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

4. Chronic Renal Failure

5. Hematological Disorders:

a. Hemophilia
b. Thalassemia

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