Part 80DDB gives for Earnings Tax Deduction underneath Chapter VI-A for fee of medical therapy of an individual affected by a specified illness. The deduction underneath Part 80DDB is allowed solely to Particular person and HUF’s.
Furthermore, this deduction is simply allowed to these People and HUF’s that are resident in India for that 12 months. (Advisable Learn: Residential Standing for the aim of Earnings Tax)
The expense needs to be incurred by the Particular person or HUF both for himself or for any dependent member of the family. The time period dependent in case of a HUF means any member of the HUF. In case of People, the time period dependent means:-
- Wholly/ Primarily dependent Partner
- Wholly/ Primarily dependent Youngsters
- Wholly/Primarily dependent Mother and father
- Wholly/ Primarily dependent Brother
- Wholly/ Primarily dependent Sisters
The deduction allowed shall be least of the next:-
- Precise quantity paid
- Rs. 40,000
In case the precise quantity paid is lower than Rs. 40,000, the precise quantity that has been paid will probably be allowed as a deduction underneath Part 80DDB. Nevertheless, in case the precise quantity paid is greater than Rs. 40,000, solely Rs. 40,000 will probably be allowed as a deduction underneath Part 80DDB.
Nevertheless, the above restrict of Rs. 40,000 shall be elevated to Rs. 60,000 in case the individual on behalf of whom the fee is being made is a senior citizen. (For the needs of Earnings Tax, any one who has attained the age of 60 at any time throughout the 12 months is taken into account as a Senior Citizen)
Price range 2015 has introduced in an modification to Part 80DDB and the deduction underneath Part 80DDB has been elevated for very senior residents to Rs. 80,000. Very Senior Residents are these People who’re above the age of 80 years.
Furthermore, it has additionally been clarified that in case any quantity which has been so paid has been obtained again underneath insurance coverage from an insurer, or reimbursed by the employer – the deduction allowed underneath part 80DDB shall be diminished by the quantity obtained/reimbursed.
Price range 2018 Replace: This restrict of Rs 60,000/80,000 for Senior/Tremendous Senior Residents has been elevated to Rs. 1,00,000 for each senior and tremendous senior residents. This modification is relevant from Monetary Yr 2018-19 onwards.
The deduction of Rs. 40,000/ Rs. 60,000/ Rs. 80,000/ Rs. 1,00,000 allowed underneath Part 80DDB is allowed over and above the restrict of Rs. 1,50,000 underneath Part 80C
Specified Illness underneath Part 80DDB
Deduction underneath Part 80DDB is allowed for Medical Therapy of the next specified ailments:-
- Neurological Illnesses
- Malignant Cancers
- Full blown Acquired Immuno Deficiency Syndrome (AIDS)
- Persistent Renal Failure
- Hematological Issues
Modification launched by Price range 2015 in Part 80DDB
Previous to introduction of Price range 2015, the assessee was required to submit a certificates within the prescribed kind, from a neorologist, an oncologist, a urologist, a haematologist, an immunologist or such different specialist physician working in a Govt hospital. This requirement of acquiring a certificates from a physician working in a Govt Hospital causes undue hardship to the individuals intending to assert the aforesaid deduction.
The Govt hospitals at many locations shouldn’t have medical doctors specialising within the above branches of medication. For this and plenty of different causes, it could be tough for a taxpayer to acquire a certificates from a Govt Hospital.
In view of the above, Part 80DDB has been amended by the Finance Act 2015 in order to offer that the assessee can submit a certificates from a specialist physician whether or not working in Govt Hospital or not.
Similar to Part 80DDB is a deduction for ailment of specified ailments, equally Part 80DD & Part 80U are deductions for medical therapy of an individual with incapacity.