Deduction 80DDB: Deduction in Respect of Medical Treatment, With All in One TDS on Salary for Govt & Non-Govt employees for FY 2015-16

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.