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. Hi, everyone
    1.I earn from Online Tutoring, under which column should I fill my income in the ITR IV? And I have Rs 594 as SB Account Interest. I’m not able to decide where to enter these in ITR IV. Please let me know in Excel Utility should I enter these in BS or PL page, under which number?

    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 should be submitted along with ITR V acknowledgement? 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 submit form 10BA alone or should I furnish the receipts from owner?

    Your help will be greatly appreciated.

  2. Can anyone assist on the following issue:
    I am a kidney patient and my father is also kidney patient. I have incurred Medical expenses for both. What will be the maximum amt of deduction? My father is a senior citizen. can i claim 100000 or 60000 as maximum deduction???

  3. Hi ,

    My mother was diagnosed with breast cancer three years before and thereafter got treated for the same. Now she is doing well.Every month I spend heavily on medicines that were advised by the doctor. Thereofore can i claim it under section 80DDB or this section allows expenses incurred during hospitalization only
    Thanks
    Piyush

  4. Hi,

    My Grandmother has Vulval Lesion (a type of Cancer). She is 78 years old. I am bearing all her expenses. Spent around 40K on Chemotherapy so far and further treatment can go up to 1-2 Lakhs. Can I claim tax benefit under section 80DDB for tretmenet of my grandmother. Do let me know.

    Thanks
    Bhushan

  5. Very good site and clear answers. Thanks.

    I have one calculation, please suggest if I am missing something:

    a. I am taking 80D deduction for medical insurance of my parents (senior citizen, no income) of 28K
    b. medical reimbursement of 15K (including my spouse, child,parents)
    c. I want to take 60k 80DDB deduction as my mother has cancer. Now, hospital bills were around 3.5 lacs-4 lacs, but 75% of it is paid by my company insurance. How much deduction I can claim under 80DDB?

    thanks

  6. HI,

    I have medical insurance for my parents (both sr. citizens). my mother has an ailment for which she needs to take medicines, can i claim the amount and get deduction under 80ddb orr does it go into my 15000 medical reimbursement.

  7. My Mother is in coma for the last eight months. She is also diagnosed with cancer. I had spend around 16 laks(Inclusive of 3 lakh insurance cover) for her treatment and Nursing care.
    Should i claim exemption under sec 80DD or Sec 80DDB? or both??
    Is there any specific form that i should submit.
    Pls advice.

  8. My family consists of my mother, myself , my elder brother (who is Cerebal Palasy, 70 % permanent disable) and he is fully dependent on me.
    My Mother is also getting family pension of Rs. 3500/-P.M.
    Can I can Claim tax deduction under 80dd for the amount spent for his rehabilitation .

    Thanks and Regards

  9. Hi,

    I have a family flouter ploicy and a super top policy for myself, spouse and kid and the premiums are 9000 and 5000 repectively.
    I have a seperate flouter policy for my parents who are below 65 years and the premium on this policy is 19000.
    Can I claim for 9000 + 5000 + 15000 = 29000?
    or would it be only 9000 + 15000 = 24000?

    Primarily the question is.,
    can I club the premium for the super top policy and family flouter policy apart from the premium paid for parent’s flouter policy when claiming exemption under 80D?

    Thanks and Regards

  10. Hi all,

    I recently spent about 20 thousands on my father’s(dependant) medical treatment.

    Treatment was related to spinal (orthopedic) so can i get tax benefit under 80ddb?

    I also spent about 5 thousands on my son’s normal medical expences. Can it also be included under 80ddb?

    Can medicine bills be used for tax deduction under 80ddb or other related section?

    Thanks
    Riken

  11. Hi Jatinder,
    I believe you’re asking about Sec 80DD. in that, you can claim the deduction for more than 1 person, provided they are dependent upon you and are related to you, as per the provisions given above.

    Thanks & Regards,
    Gurpreet

    1. Hi Gurpreet,

      Thanks for the reply in terms of number of disabled dependents cover under section 80DD.
      I am working with a software firm and I have two disabled dependents, wife(housewife) and brother(student). Both are having 40% disability certificate issued by competent medical authority & both depends on me. Payroll vendor of my company told me that they consider only one dependent under section 80DD. I have been claiming this benefit since last couple of years and did not face any issue as such.

      Is there any authenticated reference you could give me about number of dependents under section 80DD? Really appreciate your help if you could provide me any IncomeTax/other relevent link/pointer.

      Thanks,
      Prashant

  12. HOW MANY DEPENDET FAMILY MEMBERS BENIFIT UNDER 😯 D HANDICAPED. MY DOUGHTER AND MOTHER IS DEPENDET ON ME,SHE IS HANDICAPRED ABOVE 40%.

  13. Hi Jayesh,
    The amount that will be allowed as deduction will be Rs40,000/-, however if the amount is spent for a senior citizen the deduction will be Rs60,000/-.

    Thanks & Regards,
    Gurpreet

  14. I have littele query..
    I have Medical treatment expenceses about 150000/- it will in relief in sec 80DDB
    how much amount will be deducted for income tax relief and medical bill will submit them..

  15. Hi Gurpreet,
    I am having a little query….
    I am paying medical insurance for my father, mother and my sister. But the insured name is my father name and I want to show this medical insurance under 80D under my deduction. The payment of this medical insurance is paid by me only through check. My parents are below under 60 age and my father is self employed. Pls let me know.

    1. Hi Deepak,

      If you are the proposer in the policy and paying the premium, you can very well claim the tax benefit.

      However the problem will come if its a family floater covering all three.Since It is difficult to bifurcate the premium in a floater and you cannot claim on your sister policy, it then relies on the IT officer to assess the case.

  16. Hi,
    My mother has multi organ disfunctioning due to accidental consumption of poison, and she was expired in Sep, 2011 in hospital. Will I be eligible for tax excemption under 80DD?
    If yes, what all documents do I need to produce to IT department.
    Please let me know if you need more details.

      1. Hi Venkat,
        Sorry to hear about ur Mom..
        If u go through the points which I’ve mentioned under section 80DD (pls see the last point), if the dependant dies before the individual then whatever deduction u claimed earlier, will become ur income and u’ll no longer be able to avail that deduction rather ur income will be increased with that amount that was claimed as deduction..

        Thanks & Regards,
        Gurpreet

  17. Hi,
    I want to know in which I should invest to get benifit under sections:
    1. 80DD
    2. 80CCF
    3. 80D
    4.80U
    5.80DDB
    6. 80E
    Please suggest.

  18. I am a salaried person & my father is disabled & paralysed since 2-3 years. His one side is paralysed & one leg & one hand doen not work. So he is all dependent upon my family only. I am the only person in my family to earn money. I spend Rs 11000/0 PM for my family which include maintance & medicines also. I want to know how can I claim the deduction under 80DD. I’ll have to furnish Form 10IA. But apart from the Form 10IA do I need to furnish any bills cause we do not have any bills to produce. I just transfer money to my fathers account every month for my families maintanance & medicines(Ayurvedic, for which we dont get any bills). Pls let me know if I can get the deductions without any Bills?

    1. Hi Anish,

      This is what a circular from IT says;

      “It would be sufficient if the employee furnishes a medical certificate from a Government hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handi­capped dependant and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI. Therefore, DDOs may not insist upon production of vouchers/bills by the employees for having incurred expenditure on medical treatment of their handicapped dependants for allowing the deduction under section 80DD for the purpose of computing tax deductible at source.”

      I hope this answer your queries…

      1. I could see that only when the patient is disabled, then bills are not required. What if ayurvedic treatment is taken for some illness? Can we claim that under 80-D? what documents we need to produce?

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