CERTIFICATE U/S - 80DDB IT ACT

HOW TO CLAIM DEDUCTION FRO INCOME TAX UNDER SECTION 80DDB 
Specialists in private hospitals can now give a certificate for eduction under Section 80DDB of the Income Tax Act.      Read More >>>

The Certificate

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). 


How to get a certificate
 A certificate of the disease is mandatory to claim the deduction on 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 a certificate from a government hospital. The certificate must be taken from a specialist with a degree in the specialized field. This degree must be recognised by the Medical Council of India. 

For patients getting treated in a government hospital, the 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 recognized 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 the financial year 2015-16 (the assessment year 2016-17) 40,000/- or the amount actually paid, whichever is less. In the 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
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h)Parkinson's Disease.
• Malignant Cancers
• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
• Chronic Renal failure
• Haematological disorders
(i) Haemophilia
(ii) Thalassaemia

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