article Income Tax

Deduction 80DDB A Y 2021-22

Team Freetaxguru

Deduction 80 DDB A Y 2021-22

 Deduction in respect of medical treatment, etc (Section 80DDB and Rule 11DD)

Essential conditions for claiming deduction under this section

  1. Deduction is available to a person who is-
  • Resident in India, and
  • Is either an individual of HUF
  1. Deduction is allowed in respect of any expenditure actually incurred for the medical treatment of the following persons for such disease or ailment as may be specified in the rules made in this behalf by the board:

In the case of individual       –           For himself or a dependent

In the case of HUF                –           For any member of the HUF

  1. No such deduction shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist, as may be prescribed (First proviso to section 80DDB)

Quantum of deduction: Amount actually paid or Rs. 40,000 whichever is less. If the person for whom such expenditure is incurred happens to be a senior citizen, the maximum deduction shall be allowed for a sum of Rs. 100,000 instead of Rs. 40,000. in other words, the deduction in this case shall be actual amount incurred or Rs. 100,000, whichever is less.

Further, if any amount is received under an insurance from the insurer of reimbursed by an employer for the medical treatment of the person mentioned in point (2) above, the amount so received shall be reduced from the deduction allowable under this section.

Specified disease and ailments under section 80DDB Rule 11DD: Specified disease and ailments shall be as under: –

  1. Neurological diseases i.e. (a) Dementia, (b) Dystonia musculorum deformans, (c) Motor neuron disease, (d) Ataxia, (e) Chorea, (f) Hemiballismus, (g) Aphasia, (h) Parkinson’s disease.

These   diseases shall be treated as chronic and protracted, if the disability has been certified to be 40% and above.

  1. Malignant cancer;
  • Full blown acquired immune-deficiency syndrome (AIDS)
  1. Chronic renal failure;
  2. Hemophilia;