Tax Benefits

80DDB. Where an assessee who is resident in India has, during the previous year, [actually] incurred any expenditure for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board –

(a) for himself or a dependant relative, in case the assessee is an individual; or 

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family, the assessee shall be allowed a deduction of a sum of (forty) thousand rupees in respect of that previous year in which such expenditure was incurred: 

Provided that no such deduction shall be allowed unless the assessee furnishes a certificate in such form and from such authority as may be prescribed: 

[Provided further that the deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer for the medical treatment of the person referred to in clause (a) or (b): 

Provided also that where the expenditure incurred is in respect of the assessee or his dependant relative or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words “forty thousand rupees”, the words “sixty thousand rupees” had been substituted.]

 [Explanation.- For the purposes of this section,- 

(i) “dependant” means a person who is not dependant for his support or maintenance on any person other than the assessee; 

(ii) “insurer” shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(iii) “senior citizen” means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.]] 

The following section 80DDB shall be substituted for the existing section 80DDB by the Finance Act, 2003, w.e.f. 1-4-2004: 

Deduction in respect of medical treatment, etc. 80DDB. 

Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board – 

(a) for himself or a dependant, in case the assessee is an individual; or 

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family, the assessee shall be allowed a deduction of the amount actually paid or a sum of (forty) thousand rupees, whichever is less, in respect of that previous year in which such expenditure was actually paid: 

Provided that no such deduction shall be allowed unless theassessee furnishes with the return of income, a certificate in such form, from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may beprescribed as may be prescribed, working in a Government hospital: 

Provided further that the deduction under this section shall be reduced by the amount receive, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred to in clause (a) or (b): 

Provided also that where the amount actually paid in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words “forty thousand rupees”, the words “sixty thousand rupees” had been substituted. Explanation.- For the purposes of this section,- 

(i) “dependant” means (a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them, (b) in the case of a Hindu undivided family, a member of the Hindu undivided family, pendant wholly or mainly on such individual or Hindu undivided family for his support and maintenance; 

(ii) “Government hospital” includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants; 

(iii) “insurer” shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938); 

(iv) “senior citizen” means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.

Certificate of the prescribed authority for the purpose of section 80DDB 

1. Name of the Patient

 2. Address 

3. Name and details of the disease / ailment (please see rule 11DD) 

4. The date of commencement of treatment

 5. Name, address, Registration No. of the Prescribed Authority [rule 11DD(2)] 

Verification

 I certify that the information furnished above is true to the best of my knowledge and the patient is suffering from the abovementioned chronic and protracted disease as defined in section 80DDB of the Income-Tax Act,1961 read with rule 11DD of Income-Tax Rules, 1962.  

(Signature) ………………………………….

(Name and Address) …………………………………… 

ACTION POINTS

1. This Certificate is to be obtained by all assessees claiming deduction under section 80DDB. 

2. The certificate is to be obtained from any doctor registered with the Indian Medical Association with post-graduate qualifications. In other words, the doctor must at least have an M.D. qualification. Any doctor with just M.B.B.S. degree with or without any additional diploma qualification is not a post graduate.

 3. The certificate must be obtained in respect of each assessment year for which the deduction is claimed, and enclosed to the return of income for that assessment year.