This year when you file your returns, make sure that you are availing maximum benefits which has been offered by the IT Department of India. In this article, we will be discussing the range of deductions which a tax payer can get under Section 80DDB. So, let’s get started!
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What is Section 80DDB?
Before you can start
computing your deduction under section 80DDB, you first need to understand what
exactly Section 80DDB is. This section mainly deals with offering deduction to
tax payers who have incurred expenses with respect to medical treatment.
The nature of treatment includes expenses made on Cancer Treatment, Aids, etc.
How much deduction is
available for Medical Treatment?
For an ordinary tax
payer, the IT Department offers a deduction upto INR 40, 000 for every AY.
However, if the actual incurred expense is lower than INR 40, 000, then the
lower amount would qualify for deduction.
Taking up an example
would make things clear. Suppose, Mr. Apte incurred medical expenses of INR 30,
000 in the AY 2015-16. So, how deduction can he have for AY 2015-16?
Here, we would first
see the limit given by the IT Department- INR 40, 000. Now, the actual
expenditure on medical treatment for Mr. Apte is INR 30, 000. Therefore, the
lower of the two amounts (INR 30,000 in the present case) will qualify as the
deduction under Section 80DDB.
The IT Department
has reserved special provisions for Senior and Very Senior Citizens under Section 80DDB. If the tax payer
is above the age of 60 (Senior Citizen) then he would enjoy a deduction of INR
60, 000 and if the tax payer is above the age of 80 (Very Senior Citizen) then
he would enjoy a deduction of INR 80, 000. To sum up, we can follow this chart:
Status
|
Deduction under
Section 80DDB (INR)
|
Ordinary
|
40, 000
|
Senior Citizen
|
60, 000
|
Very Senior
Citizen
|
80, 000
|
How to claim
deduction for Medical Treatment- Section 80DDB?
Deduction under
Section 80DDB is available to individuals as well as HUFs. As per Finance Bill 2015, there are 2
conditions which are required to be satisfied by the tax payers. They are:
Condition 1- Deduction will be
available only when the tax payer is able to show medical prescription and
bills for which he is claiming the benefit. Without any proof of payment to a
professional, no deduction will be available.
Condition 2– Payment for Medical treatment of children,
spouse, dependent or any other family member of a HUF is included. If expenses
for medical treatment includes treatment of a very senior citizen, then
deduction will be eighty thousand rupees.
These conditions
will become effective from 1 April 2016 and will allow the tax payers to enjoy
deductions with respect to the expenditure made on medical grounds. However,
one should remember to maintain a track record of the collective expenses made
for medical treatment along with keeping the prescriptions. Without any
legitimate proof of payment, the IT Department can refuse to offer the
deductions under Section 80DDB.
