Details on Section 80D, 80DD and 80DDB

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.

180 thoughts on “Details on Section 80D, 80DD and 80DDB”

    1. Thanks for confimring Gurpreet.

      I have one more doubt.if you could please clarify that also.under 80ddb, 60k or less exp can be availed but if i have taken an insurance for my parents then that amount must have been paid by the insurance company and not by me.still can i claim that amount in my deductions??

  1. Hi Gurpreet,

    Just a naive question.. u have clarified this in examples in ur post but just wanted to confirm..
    Section 80 d tax benefits are over and above section 80c benefits of 1 lac?
    i can claim tax benefit of 1 lac (80C) plus mediclaim insurance of 15k(80D) or which ever is the limit. in this case total deduction of 1.15 lacs?

  2. Hi Kiran,
    As per Section 80D, the insurance premium for your Mediclaim policy can be claimed as deduction and not the amount of expenditure. So, whatever you paid to the ins co will be claimed as deduction. now whatever you claim with ins co, will not be considered for tax purposes.

    Thanks & Regards,
    Gurpreet

  3. I have a mediclame policy. As per this policy Rs 2500 or 10% of clame amount, which ever is higher, will be co-pay. It has to be borne me. I am going to clame for Rs 4000/- out of which Rs 2500/- be co-pay and insurer will pay me just Rs 1500/-. My question is that can I get 80D benifit on this co-pay i.e. Rs 2500/-? If yes, how can I get this benifit? Insurer will not return the original bills back. What will be the proof ?

  4. Hi Gurpreet,

    I have a similar situation what Veera describes. The one major/minor difference is that my aunt (Dad’s younger sister) is mentally handicap.

    One doubt which I have is that can I claim the deduction under 80DD in HUF (Hindu undivided family).

    I know individually I will not be able to claim the benefit.

    Thanks
    rahulxarora@hotmail.com

  5. Hi Veera,

    Following r my answers :
    1. Unfortunately your Aunt won’t be regarded as dependant upon you. (see the dependant details as mentioned above in the article)
    2. For including your Aunt in the hospitalisation coverage you’ll need to confirm this with ur HR, as this facility you’re awailing from your Co.
    3. You can visit the Income tax website or you can ask me, if you need any help, as I’m a CA. I’ll try to resolve as many queries as you ask, or at least I’ll let you know the source from where to get the relevant info.

    Thanks & Regards,
    Gurpreet

  6. Hi Gurpreet,

    I am Veera working for one of the software IT firms. I have a doubt regarding the tax claiming process and i asked many people to clear my doubt but no one has explained me clearly. The below is my question.
    My family consists of my Father, my mother, my self and myAunt (my father’s younger sister she is physically dissabled).
    1. Does my Aunt comes as my dependent or not ?
    2. As part of my employment my family will be having health insurance and hospitalization coverage. Can i also include my Aunt into the health coverage scheme ? does hospitalization also gets covered for her ?
    3. How to know all these details related to these health coverages and schemes and Tax claimings related to these issues ?
    Please help me to find a way.

    Thanks
    Veera

  7. Hi,

    I have a query continuation to Krish’s query:

    As you said, I can claim both of the following :
    1. Mediclaim insurance paid (upto the limits defined above in section 80D) i.e., 35,000 max
    2. Medical bills for, medicines, vaccination, any medical treatments done (upto Rs 15,000 annually)

    These 2 cannot be clubbed. The second one, will be shown as a deduction from your Salary, whereas the first one, is shown as a deduction from your Total taxable income

    I am n’t sure but i heard that, apart of the above 2, i can avail the following

    3. Any medical(hospital) expenses like (operations etc) held can be deducted from Total taxable income until certain amount (?) .

    Please give more details on this 3 point

    thanks in advance
    Raghava

    1. Raghava,
      For point 3 there is no deduction available…However Section 80DDB can be read as mentioned above, as it covers that medical expenses incurred on certain specified diseases can be claimed as deduction.

      Thanks & Regards,
      gurpreet

  8. Hi,

    Suppose A has one mediclaim/health insurance policy for which he is paying around
    Rs 15000/- PA. He is taking rebate under section 80D against this.
    His mother (68 yrs) is suffering from some disease(eligible for 80DBB) and got hospitalised for 2 days and as per the policy he has claimed the amount of Rs. 25000/- .

    Now the question is while filing ITR, does Mr A is aligible to take rebate under 80 D and also under 80DBB?

    if lets say A’s total income is 6.5 lakhs and after deducting 1 lakhs 80c ,15000 for 80D
    the taxable income would be Rs.535000.
    How much rebate Mr. A can get under 80DBB?what will be the calculation ?
    What all document required for 80DBB?

    Thanks,
    Vin

    1. Hi Vin,
      u’ve done the calculations correctly…for Sec 80DDB the max amount that can be claimed as deduction is 40000 or 60000 ( as explained above)…For documentation purposes :
      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.
      Plz go to the link (http://incometaxindia.gov.in/allforms.asp) and search for section 80DDB. U’ll get the certificate there. If not, plz let me know.
      Hope, ur query is solved now…let me know if u need further info…

      thanks & regards,
      gurpreet

      1. Hi Gurpreet,

        Thanks for your reply…one more query I have on this…as you say for Sec 80DDB the max amount that can be claimed as deduction is 40000 or 60000 ..
        so in my example (if lets say A’s total income is 6.5 lakhs and after deducting 1 lakhs 80c ,15000 for 80D the taxable income would be Rs.535000. )
        Mr. A can claim up to 60000 under sec 80DBB…or 60000(sec 80DBB)-15000(80D)-25000(settled insurance comp.), which is equals to 20000.
        Or can claim up to 60000 ….or any other calculation for this?

        Thanks,

        Vin

        1. Vin,

          Total Income 650000
          less 80C 100000
          less 80d for mediclaim insurance premium paid (max 15000) 15000
          less 80ddb (60000 or actul exp, whichever is less)

          i hope this answers ur query

          regards,
          gurpreet

          1. Hi Gurpreet,

            In addition to situation above.. i wanted to clarify one thing.. you said that under 80ddb, 60k or less exp can be availed but if i have taken an insurance for my parents then that amount must have been paid by the insurance company and not by me.still can i claim that amount in my deductions??

  9. Hi,

    I wanted to know if there are any documents required to be sent along with the ITR-V, if we are claiming 80DD deductions? if yes, what are those…?
    Because Rule 12 clearly states that return of income shall not be accompanied by any document or copy, but 80DD states to furnish a copy of the certificate issued by the medical authority.

  10. Hi,

    Could anyone clarify the section 80 D deduction,

    Please find my assumption below and clear my confusion with actual details, please,

    (1)
    I can avail upto
    for myself: 15,000
    for spouse: 15,000
    for Daughter: 15,000
    for my Dad (senior Citizen): 20,000
    for my Mummy (senior Citizen): 20,000
    TOTAL: 85,000

    (2)
    I can avail upto
    for myself + Spouse + Daughter: 15,000
    for my Dad (senior Citizen) + Mummy (senior Citizen): 20,000
    TOTAL: 35,000

    thanks in advance

  11. EXPLANATION TO SECTION 80D

    FAMILY & ANNUAL PREMIUMS
    MR. A – RS. 7000/-
    MRS. A – RS. 8000/-
    CHILD (DEPENDENT) – RS. 4000/-
    TOTAL – RS. 19000/-

    MAX DEDUCTION = RS. 15000/-

    NOW, LETS SAY
    MR. A’S FATHER (67 YEARS) – RS. 30000/-
    MR. A’S MOTHER – RS. 40000/-

    OUT OF THIS MR. A PAYS
    FOR FATHER – RS. 11000/-
    FOR MOTHER – RS. 20000/-
    TOTAL – RS. 31000/-

    THEREFORE, MAX. DEDUCTION IN RESPECT OF PARENTS AVAILABLE TO MR. A = RS. 20000/- (EVEN IF ONE OF THE PARENTS IS SENIOR, RS. 20000/- LIMIT APPLICABLE)

    TOTAL DEDUCTION AVAILABLE TO MR. A = RS. 35000/- (15000/- FOR OWN FAMILY + 20000/- FOR PARENTS)
    ________________
    WE HAVE TO ANTICIPATE HERE THAT BALANCE PREMIUM IS PAID BY MR. A’S FATHER;

    MOTHER + FATHER = SEPARATE FAMILY

    THEREFORE, PREMIUM PAID BY MR. A’S FATHER

    SELF – RS. 19000/- (30000 – 11000)
    WIFE – RS. 20000/- (40000 – 20000)
    TOTAL – RS. 39000/-

    THEREFORE DEDUCTION AVAILABLE TO MR. A’S FATHER SEPARATELY = RS. 20000/-

    NOTE: IN THE SAME ILLUSTRATION ABOVE, IF MR. A’S PARENTS ARE NON-RESIDENT (SAY LIVE IN AMERICA), EVEN IF THEY ARE SENIOR CITIZENS – MAX. DEDUCTION AVAILABLE IS RS. 15000/-.
    THEREFORE TOTAL BENEFIT IN SUCH A CASE WOULD BE LIMITED TO RS. 30000/- ONLY.

  12. Gurpreet another question via email:

    In case of Section 80 D: If a family has elderly parent (single/ both), then does it mean that the total rebatable amount is 15K + 20K = 35K

      1. Hi,

        I have some thing silly to ask, but couldn’t get a proper answer from any one.

        Suppose, I have take up two mediclaim policies from two different companies of cover upto 1lacs.

        Q1) If in future , if I happen to spend Rs.60,000 on my treatment. Then can I ask both the companies to pay me Rs.60,000 separately, meaning I get 1.2 lacs on medical expense of Rs.60,000 only.

        Q2) If I spend 1.75 lacs on my treatment in future, then can I ask for 1lac claim from the first company and 75,000 from the second company or any possible combinations which adds upto 1.75 lacs.

        1. You cannot make profits out of your insurance 🙂
          Its just for your insurance and its meant to be that way.

          And you need to submit original documents all the time to the insurer and its a great hassle process all the way. Now to your questions.

          Q1) If you want to get the rebate for Rs. 60000, only from one insurer, you can get it from only one insurer right away. But if you insist on getting it from both of them, you have to give TPA (Third party Administrator related to insurer) and the ID card of insurer to the hospital of both the insurance companies and say that you have total 2Lakh coverage. Thus, your Rs.60000 will be split across between your insurers and you need to submit the original bills in any case.

          Q2) The same will be applicable here as well.

          Regards,
          Manickkam.

  13. Manshu,

    Thanks a lot for bringing up this topic; this is something I’ve been trying to get an answer for, for sometime.

    I’ve a family health insurance from Star Health and the annual premium is around Rs. 2k for a 1 lac cover. Now, my accountant told me that if one shows medical bills that you’ve incurred for the year for either self or family, it can be claimed as medical reimbursement upto Rs. 15k — he said you can bring in medical shop bills, hospital bills etc.

    From the above article, I am inferring that you can either claim a health policy or it should be medical reimbursement and cannot club both. If it is right, I think it is better for me to show medical reimbursement bills alone for this assessment year as that is close to Rs. 10k vs. Rs. 2k med insurance premium.

    So, am I right to not show my med ins premium (technically, hide it) and show med reimbursement bills alone and claim more benefit?? Or can i club both? Pls HELP!

      1. Krish,
        you can claim both of the following :
        1. Mediclaim insurance paid (upto the limits defined above in section 80D)

        2. Medical bills for, medicines, vaccination, any medical treatments done (upto Rs 15,000 annually)

        These 2 cannot be clubbed. The second one, will be shown as a deduction from your Salary, whereas the first one, is shown as a deduction from your Total taxable income

          1. While Gurpreet has answered this Krish – I’d strongly recommend hiring a CA when you’re doing your taxes because it’s such a complicated subject, and something that’s true in one situation might not be true in another, so it’s best to rely on professional advice that’s given to you after someone has spent time looking at your specific situation.

        1. Hi,

          I have a query continuation to Krish’s query:

          As you said, I can claim both of the following :
          1. Mediclaim insurance paid (upto the limits defined above in section 80D) i.e., 35,000 max
          2. Medical bills for, medicines, vaccination, any medical treatments done (upto Rs 15,000 annually)

          These 2 cannot be clubbed. The second one, will be shown as a deduction from your Salary, whereas the first one, is shown as a deduction from your Total taxable income

          I am n’t sure but i heard that, apart of the above 2, i can avail the following

          3. Any medical(hospital) expenses like (operations etc) held can be deducted from Total taxable income until certain amount (?) .

          Please give more details on this 3 point

          thanks in advance
          Raghava

        2. Hi Gurpreet,

          Under medical bills, they can be for any dependent like spouse, children and parents or assessee or for only disabled dependent?

          Under which section we must fill these medical bills in ITR IV? Receipts from Private hospital treatment and medicine purchase bills from medical shop can be included for deduction? What are the receipts or form like 10I to be submitted?

          I’m paying house rent, shall I claim it for deduction? Do I need to sbmit form 10BA alone or should I furnish the receipts from owner?
          Your help will be greatly appreciated.

        3. Can under section 80dd and 80ddB bothbe claimed if the dependent is suffering from chronic disease as well as physically handicapt

  14. the link you’ve send, describes a move which SBI is taking to raise funds by means of issuing long term bonds. Rate of interest which they are offerring, seems to be quite good. For e.g take the 10 year bond offerring 9.75% rate of interet. It means that if you invest Rs 100 today, you’ll be getting roughly Rs 253 at the end of 10 years. My concern as of now is, what is the lock-in period and what will be the tax implications of these bonds. I hope I’ve clarified some points, let me know, if you want some more details around it.

Leave a Reply to Gurpreet Cancel reply

Your email address will not be published. Required fields are marked *