Compute tax deductions for medical expenditure incurred on specified critical illnesses (malignant cancer, renal failure, Parkinson's, etc.) under Rule 11DD.
Deduction is computed as Min(Actual Expense - Reimbursement, Statutory Cap).
Section 80DDB allows resident individuals and HUFs to claim tax deductions on medical expenses incurred for the treatment of specified serious illnesses for self or dependent family members (spouse, children, parents, siblings).
Under amended Rule 11DD, a prescription from a relevant specialist doctor having an MD/DM degree (e.g. Oncologist, Neurologist, Nephrologist) from a recognized medical council is sufficient. Form 10-I from government hospitals is no longer mandatory.
| Patient Age Group | Statutory Maximum Limit | Insurance Treatment |
|---|---|---|
| Below 60 Years (Non-Senior) | ₹40,000 | Reimbursement deducted from expense before cap |
| 60 Years and Above (Senior Citizen) | ₹1,00,000 | Reimbursement deducted from expense before cap |
If insurance or employer reimbursement equals or exceeds the total medical expenditure, the eligible deduction under Section 80DDB becomes Nil.
Yes. Section 80D is for health insurance premiums and preventive checkups, while Section 80DDB is specifically for actual medical treatment costs of specified critical illnesses.
No. Section 80DDB deduction is only available to taxpayers opting for the Old Tax Regime.