Medical Relief Sections of Income Tax Act,1961

CA Maneet Pal
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S.No	Section	Quantum	Conditions
1	80D – Medical Insurance Plan	·         Rs 15,000/- (himself and Family) ·         Rs 15,000/- (additional for parents) ·         Rs 15,000/- (For HUF) ·         Rs 5,000/- (additional for senior citizen)	1.       Available to: ·   Individual(Himself and Family members including parents) ·   HUF 2.       Payments can be made by any methods except cash
2	80DD – Medical Treatment of Handicapped Dependents	·         Actual expenditure or Rs 50,000/- (whichever is lower) ·         Rs 1,00,000/- in case of severe handicap	1.       Handicap disability mean: ·   Blindness and vision problems ·   Leprosy ·   hearing impairment ·   loco motor disability and ·   mental illness.  2.       Deduction can be claimed for dependent parents, spouse, children and siblings.
3	80DDB – Treatment of Specified Diseases	·         less than 65years of age - Rs 40000 is applicable ·          senior citizen Rs 60000	1.       Can be Claimed for following diseases: ·   neurological diseases, ·    Parkinson’s disease, ·   malignant cancers, ·   AIDS, ·   Chronic Renal Failure, ·   Hemophilia, ·   Thalassaemia 2.       Deductions available for self, spouse, children, siblings and parents wholly dependent on the individual.

Section 80D – Medical Insurance Premium

The Income Tax Act1961 provides deduction under sec 80D to ease the tax burden of the public. Every other family has to meet their respective medical expenses by themselves so a deduction has been allowed under this particular section. And apart from Section 80C, Section 80D can be used to gain tax benefit too.  

Essential conditions for calming deductions under this section are:

1)      Deduction is permissible to an individual or HUF only;

2)      Deduction is allowed in respect of  any sum paid in the previous year to the general insurance corporation or any other  insurer, towards medical insurance premium on the health of the following:  

a)      For individual

The assessee himself or his family or for the health of parent/ parents of the assessee. Family here means the spouse and dependent children of the assessee.

b)     For HUF

 In case of an HUF – any member of the family.

3)      Such insurance should be in accordance with a scheme framed in this behalf by

a)      GIC and approved by the central government or

b)      Any other insurer and approved by the Insurance Regulatory and Development Authority.

4)      The payment should be made by him by any mode of payment other than cash.

5)      The amount is paid out of his income chargeable to tax.

Quantum of deduction:

1)      Where the assessee is an individual: the deduction allowed shall be the aggregate of the following, namely:-

a)      The whole of the amount paid to effort or to keep in force an insurance on the health of the assessee or his spouse and dependent children as does not exceed in aggregate of Rs 15000.

b)      The whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in aggregate of 15000.

2)      Assessee is a Hindu Undivided Family: the deduction allowed shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that Hindu Undivided family as does not exceed in the aggregate of Rs15000.

Additional deduction of the Rs 5000: where the sum specified in 1(a) and (b) and 2 is paid to effect or keep in force an insurance on the health of any person specified therein and who is a senior citizen, an additional deduction of Rs 5000 shall be allowed in each case.

Section 80DD – Medical Treatment of Handicapped Dependents

A deduction can be claimed under Section 80DD of the Income Tax Act 1961 if you are incurring expenditure for the treatment of you’re a handicapped dependent. Disability here means an individual suffering from 40% or more from any such disability as prescribed below. Severe disability here means 80% or more. A) Blindness and vision problems (b) leprosy (c) hearing impairment (d) loco motor disability and (e) mental illness. 

Essential conditions:

a)      Deduction can be claimed for dependent parents, spouse, children and siblings.

b)      Dependents must not have availed any deduction under this particular section.

Quantum of deduction:

a)      Actual expenditure incurred or Rs 50000, whichever is less.

b)      In cases of severe handicap up to Rs 100000 deduction can be claimed.

Section 80DDB – Treatment of Specified Diseases

For the following diseases covered under the Section 80DDB of the Income Tax Act 1961 a deduction can be claimed.

Diseases: neurological diseases, Parkinson’s disease, malignant cancers, AIDS, Chronic Renal Failure, Hemophilia, Thalassaemia. 

Essential conditions:

A deduction is applicable for the medical treatment of self, spouse, children, siblings and parents wholly dependent on the individual.

Quantum of deduction:

For an individual assessee less than 65years of age, a deduction limit of Rs 40000 is applicable and for a senior citizen Rs 60000.