Deductions on medical treatment

SECTION 80D

This section is based on tax deduction on Health Insurance Premiums paid.
What amount of deduction can be claimed by individual or HUF in section 80D?

• • • 1. Individual:
         1. In case of insurance of Self, spouse and dependent Children-
            • Age of individual is below 60 years – Rs 25000.
            • Age of individual is above 60 years – Rs 50000.
         2. In case of insurance of parents-
            • Age of parents is below 60 years – Rs 25000.
            • Age of parents is above 60 years – Rs 50000.The amount of deduction under section 80D can be explained as follows:
      2. HUF:
         • HUF can claim deduction under this section for any member of HUF in case:
           • Where member’s age is below 60 years – Rs 25000.
           • Where member’s age is above 60 years – Rs 50000.

What amount of preventive health checkup can be claimed by individual or HUF?

• A person is also eligible to claim deduction for preventive Health Check – up payments up to Rs 5000, subject to overall limit of RS 25000 or 50000 as the case maybe.

SECTION 80DD:

• This section is based on tax deduction on treatment of Handicapped Dependent.
• This section is applicable to resident individual or resident HUF.
• Deduction is available if expenditure incurred for medical treatment, nursing, training and rehabilitation or amount paid under scheme of LIC or UTI or any other insurer approved by CBDT for maintenance of a dependent, being person with disability.

What amount of deduction can be claimed in section 80DD?

• The family member of Dependent person with at least 40% of any of specified disability can claim deduction of amount up to Rs 75000.
• The family member of dependent person with at least 80% of any disability can claim deduction up to Rs 125000.

What are the conditions for claiming deduction under section 80DD?

• The dependent shall not claim deduction under section 80U.
• Relative should not be dependent on any person other than assesse.

SECTION 80U:

• In this section deduction is available for handicapped person.
• This section is applicable to resident individual suffering from permanent physical disability or mental retardation including Blindness, loss of voice, etc.

What amount of deduction can be claimed in section 80U?

• The family member of Dependent person with at least 40% of any of specified disability can claim deduction of amount up to Rs 75000.
• The family member of dependent person with at least 80% of any disability can claim deduction up to Rs 125000.

What are the conditions for claiming deduction under section 80U?

• The disability should be certified by Physician, Surgeon, Psychiatrist, and Oculist.
• The certificate should be furnished along with the ROI u/s 139(1).

SECTION DDB:

• This section is based on medical expenditure incurred on treatment for specified diseases.
• This section is applicable to resident individual or resident HUF.
• Deduction amount shall be reduced by amount received form insurer or reimbursement by the Employer against any insurance for the medical treatment.
• Diseases or Medical Ailments specified under Section 80DDB are Ataxia, Dementia, Aphasia, Dystonia Musculorum Deformans, Hemiballismus, Parkinson’s disease, Chorea, and Motor Neuron Disease.

What amount of deduction can be claimed in section 80DDB?

• Lower of the following shall be allowed:

1. Rs 40000 or Rs 100000 in case of senior citizen.
2. Amount actually paid.