Claiming IT deduction under Section 80DDB,With Automated All in One TDS on Salary for Govt and Non Govt Employees for F.Y.2016-17 and A.Y.2017-18

When you have spent money for treatment of a dependent, suffering from a listed disease, you can claim deduction under section 80DDB. This deduction can be claimed by an individual or HUF. Only residents in India can claim this deduction. It can be claimed for your spouse, children, parents and siblings. (The diseases for which this deduction is allowed are listed at the end of this article).

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Govt & Non Govt Employees Salary Structure

How to get a certificate

A certificate of the disease is mandatory to claim deduction in your income tax return. The process of getting this certificate has now been simplified by the income tax department.

For patients who are receiving treatment in a private hospital, the certificate can be taken from the private hospital itself. They don’t have to take certificate from a government hospital. Certificate must be taken from a specialist with a degree in the specialised field. This degree must be recognised by the Medical Council of India.

For patients getting treated in a government hospital, certificate must be taken from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in general or internal medicine or any equivalent degree, which is recognised by the Medical Council of India.

Certificate in Form 10I is no longer required. The tax department has specified some details that the certificate must include. The certificate must have name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a government hospital, it should also have name and address of the government hospital.

How much deduction is allowed?
For financial year 2015-16 (assessment year 2016-17) 40,000/- or the amount actually paid, whichever is less. In case of senior citizen Rs 60,000 or amount actually paid, whichever is less. For very senior citizens Rs 80,000 is the maximum deduction that can be claimed.

Specified diseases

• Neurological diseases where the disability level has been certified to be of 40% and above –

(a) Dementia

(b) Dystonia Musculorum Deformans

(d) Ataxia

(e) Chorea

(f) Hemiballismus

(g) Aphasia

(h)Parkinson’s Disease.

• Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

• Chronic Renal failure