Section 80DDB Medical Treatment Deduction
Section 80DDB allows a deduction of up to ₹40,000 (₹1 lakh for senior citizens) for expenses incurred on medical treatment of specified diseases for self or dependants, subject to certification requirements.
Section 80DDB provides a deduction for actual medical expenditure on treatment of specified serious illnesses. Unlike Section 80D, which covers health insurance premiums, 80DDB targets out-of-pocket treatment costs for diseases that are chronic and expensive to treat. The deduction is available to individuals and Hindu Undivided Families (HUFs).
For non-senior citizens, the maximum deduction is ₹40,000. For senior citizens (aged 60 years and above), the limit is ₹1 lakh. 'Senior citizen' refers to the patient undergoing treatment, not necessarily the taxpayer, so an individual filing an ITR who incurs expenses on a senior citizen parent qualifies for the higher limit.
The diseases specified under Rule 11DD include neurological diseases where disability has been certified at 40% or more (such as dementia, Parkinson's disease, and dystonia musculorum deformans), malignant cancers, full-blown AIDS, chronic renal failure, and haematological disorders including haemophilia and thalassaemia. The list is deliberately narrow and covers only conditions with significant treatment burden.
A prescription certificate from a specialist doctor is mandatory — a general practitioner's prescription does not suffice. For neurological conditions, a certificate from a neurologist holding a DM or equivalent; for malignant cancer, from an oncologist with MD or DM; for renal failure, from a nephrologist; and for haematological disorders, from a haematologist. The certificate must be obtained and preserved as supporting documentation.
The deduction is reduced by any reimbursement received from an insurer or the employer. If the actual treatment cost is ₹70,000 and the employee receives ₹30,000 as reimbursement, the net eligible deduction is ₹40,000, subject to the applicable ceiling. The interaction with insurance reimbursement is sometimes overlooked, leading to inflated claims.
This section is particularly relevant for families dealing with cancer or chronic kidney disease, where monthly treatment costs can run into several lakhs. Combining 80DDB with 80D for health insurance and 80DD for a disabled dependent (different section) can result in substantial cumulative deductions.