If you’re exploring ways to reduce your tax liability due to medical expenses incurred for yourself or your dependents, you’re not alone. This is a common concern for salaried individuals, freelancers, and small business owners—particularly those managing family responsibilities or dealing with critical health issues.
The Income Tax Act, 1961, offers relief through Section 80DDB, which allows tax deductions for specific medical treatments, subject to certain conditions. This provision aims to ease the financial burden on taxpayers supporting family members with serious ailments.
In this guide, we provide a comprehensive overview of Section 80DDB, including eligibility criteria, qualifying diseases, documentation requirements, and the process for claiming deductions. By the end, you’ll have a clear understanding of how to leverage this tax benefit to mitigate the impact of high medical expenses.
What is Section 80DDB?
Section 80DDB allows you to claim a tax deduction on medical expenses incurred for the treatment of specific serious diseases. The deduction reduces your taxable income, meaning you pay less tax. This is particularly helpful if you’re financially supporting a loved one with a serious illness.
Section 80DDB of the Income Tax Act, 1961, outlines the provisions for claiming tax deductions related to medical treatment. Tax benefits under this section are available to individuals who meet the specified terms and conditions.
In addition to Section 80DDB, it is important to refer to Rule 11DD of the Income Tax Rules. This rule provides a detailed list of specified diseases and the categories of medical specialists whose prescriptions are considered valid for claiming tax deductions. The list of specified diseases and eligible specialists is provided at the end of this article for your reference.
Who can claim tax deduction under section 80DDB
To qualify for the Section 80DDB tax deduction, you must meet the following criteria:
You must be a resident of India
The person claiming the deduction should be living in India for tax purposes during the financial year. Indian citizens and foreign nationals who are residents of India are eligible to claim benefits under Section 80DDB, provided all other conditions specified in the section are duly fulfilled.
Non-residents (NRIs) cannot claim this deduction.
Eligible taxpayers
This includes:
- Individuals (salaried, freelance, or self-employed)
- Hindu Undivided Families (HUFs)
Supporting dependent family members
The medical expenses should be for yourself, your spouse, children, parents, or siblings—provided they are financially dependent on you.
The taxpayer must have paid for the medical treatment of a specified disease or ailment as prescribed by the Board under rule 11DD.
While you may incur medical expenses for any individual, to claim a tax deduction under Section 80DDB, the expenditure must be incurred for the medical treatment of the assessee or their dependent spouse, children, parents, or siblings.
In case of a HUF, expenditure is eligible for tax deduction under section 80DDB if its incurred for the medical treatment of any member who is wholly or mainly dependent upon the HUF.
The taxpayer must have a doctor’s prescription to claim tax deduction under section 80DDB.
List of eligible prescribed diseases and doctors whose prescription is considered for the purpose of tax deduction under section 80DDB is given below at the end of this article.
Here are the conditions to be satisfied in order to get eligible for Section 80DDB tax deduction;
- The taxpayer is an Individual or HUF.
- The Taxpayer is resident in India.
- The Taxpayer must have paid any amount for the medical treatment of a specified disease or ailment as prescribed by the Board under rule 11D.
- The expenditure must be incurred for medical treatment of the assessee himself, wholly or mainly dependent husband/wife, children, or parents, or brothers and sisters of the taxpayer.
- The Taxpayer is required to have doctor’s prescription and bills.
Example:
Imagine Ravi, a freelance mechanic in Pune, has been supporting his mother who is battling chronic kidney failure. He can claim a deduction for his mother’s treatment under Section 80DDB since she is dependent on him financially.
How Much Tax Deduction Can You Claim Under Section 80DDB?
If conditions to section 80DDB of the Income tax act, 1961, satisfied, then actual expenditure on medical treatment will be allowed as tax deduction.
However, the total amount of tax deduction for the whole financial year cannot exceed 40,000 rupees.
This means, the amount of expenditure for medical treatment or Rs 40,0000 whichever is lower will be allowed as tax deduction under section 80DDB of the Income tax act, 1961.
In the case of a senior citizen, the maximum tax deduction limit is 1,00,000 rupees instead of 40,000 rupees.
Senior citizen is an individual who is at least 60 years of age at any time during the financial year for which tax deduction is claimed.
Please note, if you have received any amount from an insurer under an insurance or reimbursed by the employer for medical treatment, then tax deduction under section 80DDB shall be reduced by the amount received.
Table Showing Tax Deduction limit under section 80DDB
| Patient’s age | Maximum limit in Indian rupees |
| For individuals below 60 years | 40,000 |
| For senior citizens (60 years or older) | 1,00,000 |
Please note, the amount of tax deduction under section 80DDB is decided based on the age of the person who is availing medical treatment and not on the basis of the age of the person who is claiming the benefit of tax deduction.
If you have decided to pay tax as per the new tax regime under section 115BAC, then section 80DDB benefits are not available. You can claim tax benefits under this section, if you have opted to pay tax as per the old tax regime.
Examples:
- Rani, a tailor from Delhi, spends ₹50,000 on her mother’s cancer treatment. Since her mother is a senior citizen (over 60 years), she can claim the full ₹1,00,000, even though the treatment cost was only ₹50,000.
- Rohit, a small mobile repair shop owner, spends ₹30,000 on his wife’s neurological treatment. Since his wife is under 60 years, he can only claim up to ₹40,000 i.e. ₹30,000 in this case.
If you’ve received any insurance reimbursement, the amount reimbursed will be deducted from your claim.Example: If Rohit received ₹15,000 in insurance reimbursement, he can only claim ₹15,000 as a deduction (₹30,000 – ₹15,000).
How to claim tax deduction under section 80DDB
You can claim tax deduction under section 80DDB in your income tax return. While filing your Income tax return (ITR), you need to mention the exact amount of tax deduction based on your calculation to avail the benefit.
You should have proof that the medical treatment is undertaken. Keep the prescription and medical bills with you. You need not attach or upload these documents while filing your income tax return. However, if the assessing officer asks for it, then you need to produce these documents before them.
Following things should be present in the prescription;
- Patient’s name and age
- Name of Disease or Ailment
- Specialist doctor who is issuing the prescription should mention his/her name, address, qualification and registration number.
Diseases Covered, Form and Certificate
Column 1 of the following table shows specified diseases eligible for tax deduction under section 80DDB and column 2 says whose prescription is allowed to claim such benefits.
| Specified diseases under rule 11DD | To claim tax deduction under section 80DDB prescription should be issued by following specialists |
| Neurological Diseases where the disability level 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 | a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India; |
| Malignant Cancers | an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India; |
| Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | any specialist having a postgraduate degree in General or Internal Medicine, or any equivalent degree which is recognised by the Medical Council of India; |
| Chronic Renal failure | a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree, which is recognised by the Medical Council of India; |
| Hematological disorders:(i)Hemophilia; (ii)Thalassaemia | a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognised by the Medical Council of India : |
Provided that where in respect of any diseases or ailments as specified in column 1, the patient is receiving the treatment in a Government hospital, the prescription may be issued by any specialist working full-time in that hospital and having a postgraduate degree in General or Internal Medicine or any equivalent degree, which is recognized by the Medical Council of India.
The prescription referred to in column 2 shall contain the name and age of the patient, name of the disease or ailment along with the name, address, registration number and the qualification of the specialist issuing the prescription.
Where the patient is receiving the treatment in a Government hospital, such prescription shall also contain the name and address of the Government hospital.
Link to refer rule 11DD
Now you know Who can claim tax deduction under section 80DDB? What is 80DDB deduction in income tax? and what is the maximum limit of the tax deduction U/s 80DDB?
Let us know the applicability with the following example.
Example Showing calculation of tax deduction under section 80DDB
Mr X, an individual resident in India, paid expenses on medical treatment of specified disease of Rs 60,000 during the financial year 2023-24 (assessment year 2024-25). He has also received an amount of Rs 30,000 from an insurance company against such expenses. Can he claim tax deduction under section 80DDB? If yes, calculate his tax deduction for the financial year 2023-24 (assessment year 2024-2025).
| Particulars | Amount (in Rs.) |
| Medical expenditures paid by the assessee | 60,000 |
| Maximum Limit of section 80DDB (assuming Mr C not a senior citizen) | 40,000 |
| Tax Deduction Eligibility (Lower of above two) | 40,000 |
| Less: amount received from insurance company | (30,000) |
| Deduction can be claimed u/s 80DDB (Rs 40,000 – Rs 30,000) | 10,000 |
In the above example, Mr. X eligibility was Rs 40,000 to claim tax deduction under section 80DDB. As he has received Rs 30,000 from the insurer towards his medical treatment, total eligibility gets reduced by the amount received to Rs 10,000 (Rs 40,000-Rs 30,000). Hence, the assessee can claim an amount of Rs 10,000 as tax deduction under section 80DDB of Income Tax Act 1961.
What Should the Doctor’s Prescription Include?
To claim the deduction, you need to provide a valid doctor’s prescription. The prescription should clearly mention:
- Patient’s name and age
- Disease name
- Doctor’s name, qualifications, registration number, and address
- If the prescription is from a government hospital, it should also include the hospital’s name and address.
Ensure that the prescription includes all the details—especially if you’re treating the patient in a smaller town, where general practitioners may issue the prescription. Missing details can cause delays in your claim.
Steps to Claim a Deduction Under Section 80DDB
Here’s the simple, step-by-step process to claim your deduction:
- Get the Doctor’s Prescription: Ensure the prescription includes all the required details as mentioned earlier.
- Collect Bills & Proof of Expenses: Keep your medical bills, receipts, and payment proof. You won’t upload these documents when filing your Income Tax Return (ITR), but they should be kept for at least 6 years in case of future verification.
- File Your Income Tax Return (ITR): Choose the old tax regime (Section 80DDB isn’t available under the new tax regime). Under the deductions section, look for Section 80DDB and enter the eligible amount (after deducting any reimbursements from insurance).
- Keep All Supporting Documents Ready: If the Income Tax Department asks for verification, you should be ready to provide Doctor’s prescription, Medical bills and Reimbursement details
Conclusion
Understanding Section 80DDB is a smart way to reduce your medical expenses burden while also lowering your taxable income. By keeping track of your medical costs and gathering the right documents, you can use this provision effectively and save on taxes.
Remember, tax planning doesn’t have to be complex. Take charge of your finances today, file your returns with confidence, and claim the medical deductions you deserve.Tax planning doesn’t have to be daunting! Armed with this knowledge, you can confidently claim Section 80DDB to save money on taxes while easing the financial burden of medical treatments. Keep your documents in order, and you’ll be good to go!
Key Takeaways
- Individuals or HUFs who are residents of India and have a dependent family member with a specified disease can claim this deduction.
- You can claim up to ₹40,000 for individuals under 60 years and ₹1,00,000 for senior citizens (60+ years).
- Only treatment for serious diseases like cancer, chronic kidney failure, and neurological disorders qualifies for this deduction.
- Any reimbursement received from insurance or employers reduces the deduction you can claim.
- You need a proper doctor’s prescription and medical bills to claim the deduction.
Frequently Asked Questions on Section 80DDB
Can I claim both Section 80DD and 80DDB together?
Yes. There is no such restriction but you need to satisfy conditions specified in these sections.
Can I claim a full deduction of 40,000 u/s 80DDB?
No, it’s not a fixed deduction like in the case of Section 80U. You can claim tax deduction up to Rs 40,000. If your expenses are less than 40,000 rupees for the whole financial year, then tax deduction will be restricted up to your actual expenses. If it’s more than 40,000, then tax deduction will be restricted to 40,000 rupees.
Can expenditure incurred for dental treatments like root canal be claimed under section 80DDB?
No, as dental treatment like root canal is not considered as a specified disease.
Is diabetes and high blood pressure covered under section 80DDB?
No, You can refer to rule 11DD as specified in our above article. Diabetes and high blood pressure is not a specified disease to claim tax deduction.
Is paralysis covered as a specified disease for tax deduction u/s 80DDB?
Yes, paralysis is eligible, as it’s a neurological disease included in the list of specified diseases under rule 11DD.
What is dependent and who all are covered in it as per section 80DDB?
For the purpose of section 80DDB, in case of an individual, dependent means spouse, children, parents, brothers, and sisters of the individual, or any of them who is wholly or mainly dependent on the assessee for his support and maintenance.
In the case of a Hindu Undivided Family (HUF), any member can be treated as dependent if such member is wholly or mainly dependent on his support and maintenance.
| Assessee | Dependent |
| Individual assessee | Spouse, Children, Parents, Brothers, and Sisters of the individual |
| HUF Assessee | Any member |
