Deduction in respect of medical treatment etc. [Section 80DDB] :
(i) This section provides deduction to an assessee, who is resident in India, being an individual and Hindu undivided family. Any amount actually paid for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board for himself or a dependent, in case the assessee is an individual or for any member of a HUF, in case the assessee is a HUF will qualify for deduction.
(ii) The amount of deduction under this section shall be equal to the amount actually paid or Rs 40,000, whichever is less, in respect of that previous year in which such amount was actually paid. In case the amount is paid in respect of a senior citizen, i.e., a resident individual of the age of 60 years or more at any time during the relevant previous year , then the deduction would be the amount actually paid or Rs 60,000, whichever is less. Further, a higher limit of deduction of upto Rs 80,000 is allowable to the assessee, for the expenditure incurred in respect of the medical treatment of himself or a dependent, being a “very senior citizen”. A “very senior citizen” is as an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year .
(iii) The above deduction is available to an individual for medical expenditure incurred on himself or a dependant. It is also available to a Hindu undivided family (HUF) for such expenditure incurred on any of its members.
(iv) Meaning of “Dependant”:
| Assessee | Dependent | |
| (1) | Individual | the spouse, children, parents, brother or sister of the individual or any of them, wholly or mainly dependent on such individual for his support and maintenance. |
| (2) | HUF | a member of the HUF, wholly or mainly dependant on such HUF for his support and maintenance. |
(v) The maximum limit of deduction under section 80DDB for the various categories of dependent are summarized hereunder:
| Dependent | Maximum limit (Rs) | |
| (1) | A very senior citizen, being a resident individual | 80,000 |
| (2) | A senior citizen, being a resident individual | 60,000 |
| (3) | Dependent, other than mentioned in (1) & (2) above | 40,000 |
(vi) 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.
(vii) The deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the assessee or the dependent.