Details on Section 80D, 80DD and 80DDB

by Manshu on February 14, 2011

in Tax

Another post from the Suggest a Topic page, and this one is actually written by my CA friend Gurpreet Singh. We’re trying to collaborate and see if he can answer some of the taxation related questions here on OneMint, and write some articles on tax as well.

Details of Section 80D

Any amount paid by an Individual or HUF to an Insurance company as Medical Insurance Premium i.e. premium paid in respect of Mediclaim Policy can be claimed as deduction under section 80D.

Note: Life Insurance Premium is NOT covered under this category.

Important points:

  1. Premium paid should be in respect of Mediclaim Insurance policy.
  2. The deduction is also available when the Taxpayer makes any contribution towards Central Government Health Scheme.
  3. Deduction is available only to Individuals and HUFs (Hindu Undivided Family). Corporates or Partnership firms cannot claim this deduction.
  4. Deduction is not allowed when the premium is paid by cash. In other words, the deduction will be allowed when the premium is paid by modes other than cash i.e. cheque or DD.
  5. Deduction is allowed in respect of following persons:
Taxpayer Insured Person
Individual On the health of taxpayer himself/herself, spouse, parents, dependent children of taxpayer
Hindu Undivided Family (HUF) On the health of any of the member of the family

Amount exempted under Section 80D

Least of the following is allowed to be deducted from Gross Total Income of the Taxpayer for 80D:

a. Actual Mediclaim Insurance Premium paid

b. Rs. 15,000

In case the Mediclaim Insurance Premium paid is for a Senior Citizen (person above 65 years), least of the following is allowed as deduction :

a. Actual Mediclaim Insurance Premium paid

b. Rs. 20,000

Details on Section 80DD

This is a deduction in respect of maintenance including medical treatment of handicapped dependent that is a person with a disability.

It is available to individuals and HUFs (Hindu Undivided Families).

In the case of an individual the deduction is available to spouse, children, parents brothers or sisters of the individual.

In the case of HUF the deduction is available to any member of the HUF.

The second condition is that the disabled person should be wholly or mainly dependent on the person seeking the deduction for their support and maintenance.

The dependent should have a disability of at least 40%, and for claiming the deduction the assessee has to furnish a copy of certificate issued by the medical authority

There are two ways in which the expenses could have been incurred:

Option 1 Option 2
The taxpayer has incurred an expenditure for the medical treatment, training, nursing and rehabilitation of the dependent The taxpayer has paid/deposited under any scheme framed in this behalf by the LIC or any other insurer or the administrator or specified company and approved by the Board in this behalf, for the support/maintenance of the dependent

Amount of deduction eligible under Section 80DD:

1. Fixed deduction of Rs 50,000/- is allowed irrespective of amounts incurred in Option 1/2

2. Deduction of Rs. 1,00,000/- is allowed in case where the dependent has the disability of more than 80%

If the dependent predeceases the Individual/HUF, an amount equal to the amount paid shall be deemed to be the income of the individual/HUF and will be chargeable to tax

Details on Section 80DDB

This deduction is in respect of medical treatment of a specified disease or ailment as prescribed by the Board.

80DDB deductions are also available to individuals or HUFs and are available for expenditure incurred in respect of assessee himself or his dependent spouse, children, parents, brothers/sisters.

In order to get 80DDB deduction the assessee has to submit a certificate in the prescribed form from a neurologist, oncologist, urologist, haemotologist, immunologist or such other specialist as prescribed working in a government hospital.

Amount of Deduction under 80DDB:

Actual amount paid or Rs 40,000/-, whichever is lower

In case the amount incurred is in respect of a person who is a Senior citizen then:

Actual amount paid or Rs 60,000/-, whichever is lower

These  were some details on Section 80D, 80DD and 80DDB, and feel free to ask any questions and I’ll try to answer them here.

Views: 78059


Get free daily updates in your email:






{ 109 comments… read them below or add one }

SUNIL KUMAR SETHIA February 21, 2013 at 2:58 pm

In month of Jan-13, My father (Age 66 year) (retired govt employee) got treatment for Spinetics pain (low back pain) by a specilities surgen and spend a sum of Rs. 56000/-
I am a employee of Aditya birla group and cover in Mediclaim policy by Medi Assists (new India Insurance)
I have loudge the claim but not complite reimbrusment by Insurance co.

Advised to us can we avail the benifit under section 80DDB or any other section.

Reply

SUNIL KUMAR SETHIA February 21, 2013 at 2:59 pm

Good for knowledge

Reply

vimal salot February 23, 2013 at 10:35 am

Under section 80 DDB, how a patient can get benifit for tax saving? Can it be considered as deduction from total income?

Reply

Uma February 23, 2013 at 1:24 pm

Hi,

I have taken a family floater for myself, my husband, my parents and my in-laws.

So under 80D I would be allowed a deduction of 15K (me and my husband) +15K(my parents)

Could my father in-law contribute towards the premium and claim deduction under 80D?

Thanks in advance
– Uma

Reply

Manshu February 25, 2013 at 5:47 am

As far as I know, your father in law can’t do this but I’m not sure about this so you may want to check with a CA before taking a final decision.

Reply

HARSHBARDHA SINGH March 13, 2013 at 1:51 pm

Hi,
i m working in pvt ltd co. i want to know about investment of u/s 80dd. Last year we have received the certificate u/s 80DD from the employee. Should we require certificate for claiming u/s 80dd for this year also?

Reply

mohanraj March 15, 2013 at 8:59 pm

my son is having parmanent disability of more than 50 %

can i claim both 80 dd and 80 ddb

for 80 dd shall i have to submit the 10 i form

Reply

Gururaja Rao March 28, 2013 at 5:40 pm

I working in Govt.company, i am getting mothly medical allowanceRs.1669 P.M for meeting my monthly medical expences like purshase of medicancs and also paying medical insurance premium for self and family Rs.21000 P.A. whether both are exmpeted from the tax

Reply

Manshu March 29, 2013 at 6:17 am

Medical expenses are exempted up to Rs. 15,000 if you have the bills. So in your case Rs. 6,000 will be taxable and the rest will be exempt.

Reply

Arun April 5, 2013 at 7:31 pm

Hi,

My Father Recently went through throat cancer surgery in private hospital.
How to get tax benefit under 80DDB.

Do we need to get doctor signature from government doctor only??
What is the format of the letter? What are the documents I need to submit to income tax department?

Reply

Manshu April 9, 2013 at 5:54 am

There is no fixed format for this, and as long as you have valid hospital proof of the expenses, you can submit them and claim exemption.

Reply

MANISH October 3, 2013 at 8:50 pm

my wife went through recently appendix opperation in private hospital and i got mediclaim.
now i can claim for 80ddb which is applicabel in my case or not ,please reply me.

Reply

ANIL BAJPAI October 10, 2013 at 5:03 pm

SIR, I AM SUFFERING FROM DIABETES & HYPERTENSION & DYSLIPIDEMIA & OLD C.V.A. AND I AM TAKING TREATMENT. I AM A BANKER. I AM GETTING REIMBURSEMENT FROM BANK. CAN I GET REBATE UNDER INCOME TAX ACT 80 DDB OF RS.40000/- ?

THANKS,

Reply

Rajeev January 9, 2014 at 1:22 pm

Hi all,

I recently spent about 60 thousands on my medical treatment.
Treatment was related to encephalitis (viral) so can i get tax benefit under 80ddb?
Can medicine bills be used for tax deduction under 80ddb or other related section?

Thanks
Rajeev

Reply

bassayya b mathapati March 1, 2014 at 6:45 am

Respected sir,
we both (husband & wife) are Govt employess & my wife is physicl handicape. 50% can I claim 80DD.Is she claim 80DDB.

Reply

jitendar bansal March 9, 2014 at 9:52 am

my father is dependent on i and my brother. can we both divide the exemption under section 80 dd n 80 ddb?

Reply

Amjad Khan April 18, 2014 at 12:24 pm

IN case of cancer treatment (80DDB), is it necessary that the doctor should be government employee as a doctor or we can get it made by private hospital also where we are getting treatment.

Reply

Abhi May 8, 2014 at 9:44 pm

as required you have to get the certificate from a doctor working in a government hospital

Reply

Leave a Comment

{ 1 trackback }

Previous post:

Next post: