The
Section 80D contains grants a tax deduction on medical insurance charges and
medical use. It is granted on the expenses paid for a medical insurance
strategy for the taxpayer himself and/or a nearby family member. Section 80D of
Income Tax offers a deduction over and above to the deductions under Section
80C of Income Tax Act
Deduction under Section
80D
• The maximum permissible deduction is INR 25,000 each
financial year on the charge for health insurance for self and family.
• For senior residents, the maximum
permissible deduction is INR 50,000 for every financial year.
Qualification under Section 80D
An
occupant individual can avail the deduction, according to section 80D, against
the top notch paid for health insurance administrations for below family
members
• Self
• Children
• Spouse
Section 80DD
Any
inhabitant individual or HUF is qualified for a tax deduction on the use
incurred towards the maintenance of ward disabled relative under Section 80DD
of the Income Tax Act, 1961. This deduction cannot be availed by a taxpayer who
is oneself disabled. The deduction is available for below-referenced costs:
(a)
Consumption incurred towards medical treatment, training, nursing and
rehabilitation of a disabled ward relative.
(b)
Amount paid towards a plan of LIC/UTI another regulated insurer for maintenance
of disabled ward relative.
For the inclusion of ward
disabled relative, here are the important terms and conditions
Disabled Individual
• In cases for the individual taxpayer: mate,
youngsters, parents, brothers and sisters of the individual, or any of them who
is mainly or completely subject to such individual
• In the case of HUF: Any member of the
HUF, who is mainly or entirely reliant on such HUF. Subject to the condition
that the needy individual has not claimed any deduction under section 80U.
Disability
The
cases where an individual is suffering from disability include low vision
condition, blindness, sickness restored, loco motor's disability, hearing
impairment and any kind of mental disease or mental retardation including
autism.
An individual with an extreme disability
means:-
The
cases where an individual with extreme disabled (80%) because of single or
different disabilities including the cases of autism, cerebral palsy and mental
retardation.
Permissible Cutoff
points
The
maximum permissible deduction under this section is up to INR 75,000 towards
the consumption incurred in the maintenance of ward disabled relative,
independent of its amount. In cases of extreme disability i.e., disability of
80% or above, then the amount of deduction will be INR 1,25,000.
Section 80DDB
Under
Section 80DDB of the Income Tax Act, an individual can claim a deduction on the
consumption incurred on medical treatment of genuine sicknesses. The provisions
in this regard are as per the following:
• You must be
an inhabitant individual or a HUF
• The deduction is applicable on the actual amount paid
by the individual/HUF on medical treatment of a predetermined disease, as
prescribed by the Board.
• In cases of the individual taxpayer, the
above-referenced use ought to be on medical treatment of an individual or
completely/mainly needy, kids, mate, parents or siblings of the individual.
• In the case of a HUF, the use ought to be for the
treatment of any family member, who is entirely/mainly subject to HUF.
• The taxpayer is needed to obtain the recommendation
for the predefined medical treatment from any perceived oncologist,
neurologist, urologist, immunologist, hematologist or any other specialist, as
may be prescribed.
Diseases secured under
Section 80DDB
The
nature of diseases and ailments which are included for deduction under Section
80DDB is referenced in Rule 11DD of Income Tax and the same are as per the following:
1. Neuro Diseases as recognized by a Doctor, where the maser of disability has been affirmed to be of 40% and above and covers
Dementia, Dystonia Musculorum Deformans, Chorea, Motor Neuron Disease, Ataxia,
Aphasia, Parkinson's Disease and Hemiballismus.
1. Malignant Cancer
2. AIDS-Acquired
Immuno-Inadequacy Disorder
3. Chronic
Renal failure
4. Haematological
disorders like Hemophilia or Thalassaemia.
Amount of deduction
Amount
actually paid for medical treatment indicated above or Rs 40,000 whichever is
lower. For senior residents (aged 60 and above) the deduction would be the use
incurred or Rs 100,000, whichever is lower.
Key Terms and Conditions for availing Section 80DDB Tax Benefits
• Below referenced are scarcely any critical points to
be followed while availing the deduction under section 80DDB:
1. The taxpayer needs to obtain a duplicate of the
certificate in Form No. 10-I, appropriately issued and attested by a
neurologist/urologist/oncologist/hematologist/immunologist or any such
specialist
• The specialist ought to be working in an
Administration perceived hospital.
• In case the taxpayer is receiving repayment for such
use from any other insurer or his boss, the net amount shall be deducted from
the total amount of tax exception processed in an aforesaid manner.
• The taxpayer ought to obtain a
duplicate of the certificate issued by the medical authority. A new certificate
is mandatory post-reassessment of disability after the expiry time frame
referenced in the initial certificate.
• If the ward predeceases, the taxpayer
or the member of HUF alluded to above, then the amount paid or stored, shall be
charged to tax in the hands of the taxpayer for the earlier year in which such
whole is gotten.
• The certificate can be obtained from
a specialist doctor according to the cases applicable. In case the patients are
being treated in any private hospital, the certificate from the administration
hospital is not mandatory.
• The specialist ought to be a post-graduate in General
or Internal Medicine or an equivalent degree perceived by the Medical Chamber
of India.
