Section 80DDB - Deduction for Medical Treatment
Introduction
A medical emergency is not just an emotional crisis; it is often a financial catastrophe. While a standard health insurance policy (Section 80D) covers hospitalization bills, the day-to-day costs of managing chronic or critical illnesses can bleed a family's savings dry. Medicines for neurological disorders, dialysis sessions for kidney failure, or chemotherapy cycles often involve massive out-of-pocket expenses that insurance might not fully cover.
The Income Tax Act provides a specific lifeline for such situations: Section 80DDB. Unlike Section 80D, which gives you a deduction for paying insurance premiums, Section 80DDB gives you a deduction for the actual medical expenditure incurred on treating specific critical diseases.
For the Financial Year 2025-26, this section remains a vital tool for families supporting elderly parents or dependents with severe ailments. In this guide, we will break down the eligibility, the specific list of diseases covered under Rule 11DD, and the correct format of the doctor's prescription needed to claim this benefit.
Table of Contents
- What is Section 80DDB?
- Who Can Claim This Deduction?
- Who is a "Dependent"?
- List of Specified Diseases (Rule 11DD)
- Maximum Deduction Limits (2025 Update)
- 80DDB vs 80D: Know the Difference
- Documents Required: The Prescription Rule
- How to Calculate the Deduction Amount
- Can You Claim 80DDB If You Have Insurance?
- FAQs
What is Section 80DDB?
Section 80DDB allows Resident Individuals and Hindu Undivided Families (HUFs) to claim a tax deduction for money spent on the medical treatment of "Specified Diseases."
It is important to note that this is not a general deduction for any illness. You cannot claim it for a common flu, a fracture, or a cataract surgery. It is strictly reserved for serious, life-threatening, or chronic ailments defined by the Income Tax Board.
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Who Can Claim This Deduction?
Two categories of taxpayers can claim this:
- Individuals: For expenditure incurred on themselves or their Dependents.
- HUFs: For expenditure incurred on any member of the HUF family.
Note: Non-Resident Indians (NRIs) can also claim this deduction, but the "Senior Citizen" higher limit is generally interpreted strictly for Residents. However, the section text says "Resident Individual/HUF," implying the claimant must be resident.
Who is a "Dependent"?
You cannot claim this for just anyone. The person being treated must be dependent on you for support.
- For Individuals: Spouse, Children, Parents, Brothers, and Sisters.
- For HUFs: Any member of the HUF.
Crucial Point: If your father has a high income and pays for his own treatment, you cannot claim the deduction even if you are the son. The expenditure must be actually incurred by you, and the patient must be dependent on you.
List of Specified Diseases (Rule 11DD)
This is the most critical part. The deduction is available ONLY for the diseases listed under Rule 11DD of the Income Tax Rules.
-
Neurological Diseases (where disability level is 40% or more):
- Dementia
- Dystonia Musculorum Deformans
- Motor Neuron Disease
- Ataxia
- Chorea
- Hemiballismus
- Aphasia
- Parkinson's Disease
-
Malignant Cancers
-
AIDS (Acquired Immuno-Deficiency Syndrome)
-
Chronic Renal Failure (Kidney Failure)
-
Hemophilia
-
Thalassemia
Note: Diabetes and Hypertension are common, but they are NOT covered under Section 80DDB unless they lead to one of the specific complications listed (like Renal Failure).
Maximum Deduction Limits (2025 Update)
The deduction limit depends on the age of the patient (the person undergoing treatment), not the age of the claimant.
Patient Category
Maximum Deduction Limit
General Person (Below 60 years)
₹40,000
Senior Citizen (60 years or above)
₹1,00,000
Super Senior Citizen (80 years or above)
₹1,00,000
Before 2018, the limits were lower. The current limit of ₹1 Lakh for seniors is a significant relief.
80DDB vs 80D: Know the Difference
Many taxpayers confuse these two sections.
Feature
Section 80D
Section 80DDB
Purpose
Health Insurance Premiums
Actual Medical Treatment Cost
Coverage
Any hospitalization/checkup
Only Specified Diseases (Rule 11DD)
Limit
₹25k / ₹50k
₹40k / ₹1Lakh
Proof
Insurance Receipt
Doctor's Prescription
Documents Required: The Prescription Rule
Earlier, you needed a certificate in Form 10-I from a specialist working in a Government Hospital. That rule was relaxed.
Current Requirement:
You need a prescription/certificate from a Specialist Doctor (can be from a Private Hospital too).
The prescription must contain:
- Name and Age of the patient.
- Name of the Disease/Ailment.
- Name, Address, Registration Number, and Qualification of the Specialist.
- If treated in a Govt Hospital, the name and address of the hospital.
Pro Tip: While you do not attach this prescription to your ITR form, you must keep it safe. If your return is picked for scrutiny, the Assessing Officer will demand this specific document.
How to Calculate the Deduction Amount
The formula involves subtracting any insurance reimbursement you received.
Formula:
Deduction = Actual Expense OR Limit (₹40k/₹1L) [whichever is lower] MINUS Insurance/Employer Reimbursement.
Example:
Mr. Sharma (Age 45) spent ₹1,20,000 on his father's (Age 68) cancer treatment.
- Age of Patient: 68 (Senior Citizen).
- Max Limit: ₹1,00,000.
- Actual Spend: ₹1,20,000.
- Eligible Amount: Lower of the two -> ₹1,00,000.
- Insurance Claim Received: ₹30,000.
- Final Deduction: ₹1,00,000 - ₹30,000 = ₹70,000.
If the insurance company had paid ₹1,20,000 fully, Mr. Sharma would get zero deduction under 80DDB.
Can You Claim 80DDB If You Have Insurance?
Yes, but only on the out-of-pocket expenses.
If the insurance company settles the bill directly (Cashless), you haven't incurred the expense, so you can't claim it.
However, usually, insurance covers hospitalization, while 80DDB can cover post-hospitalization medicines or treatments that insurance rejected, provided you have the bills and they relate to the specified disease.