Important Keyword: Chapter VI-A, Income Tax, Section 80C, Tax Savings & Deductions.
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Proofs for Income Tax Declaration
The HR Department at your company is gearing up to send out emails requesting that you submit proofs for your Income Tax Declaration with the new year approaching. Employees must submit investment proofs and income tax declarations so that the employer can correctly deduct the right amount of TDS (Tax Deducted at Source). It’s important to know what investment proofs need to be provided to your employer. These details are to be submitted using Form 12BB.
Major Sections to Claim Income Tax Declaration
Income tax declaration involves claiming deductions to reduce taxable income, thereby lowering the tax liability. Here’s a breakdown of major sections and what they cover:
Section 80C:
Under this section, you can claim deductions up to INR 1,50,000 by investing in:
Life Insurance premiums
ELSS/Mutual Funds (Tax Saving)
PPF (Public Provident Fund)
Principal repayment of Housing Loan
Children’s Tuition Fees (for up to 2 children)
Fixed Deposits (Tax Savings)
Unit Linked Insurance Plans (ULIPs)
NSC (National Savings Certificate)
Sukanya Samriddhi Account
Deferred Annuity Plans
NHB deposit schemes/pension funds
Section 80CCC:
This section allows deductions for contributions to Pension Plans.
Section 80D:
Deductions are available for:
Medical Insurance premiums for self, spouse, children
Medical Insurance premiums for parents (higher deduction if parents are senior citizens)
Section 80DD:
Offers deductions for expenses on dependents with disabilities.
Section 80U:
Provides deductions for expenses on own disabilities.
Section 80DDB:
Deductions for treatment of specified diseases.
Section 80G:
Donations made to specified trusts are eligible for deductions.
Section 80E:
Interest paid on Education Loans can be claimed as deductions.
Section 24(b):
Interest on Housing Loan can be claimed, subject to specified conditions.
House Rent Allowance (HRA):
Provides deductions on rent paid, subject to certain conditions.
Section 10(5):
Leave Travel Allowance (LTA) deductions are available for travel expenses within specified limits.
Section 17(2):
Medical Reimbursement deductions are available for medical expenses.
Important Keyword: Chapter VI-A, NPS, Pension Income, Section 80CCD.
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Section 80CCD: Deduction for Contribution to Pension Fund
Planning for retirement is a critical aspect of financial management, and the Income Tax Act offers incentives to encourage savings through provisions like deduction under section 80CCD. This deduction is aimed at individuals who contribute towards the National Pension Scheme (NPS) or Atal Pension Yojana (APS).
U/S 80CCD, taxpayers can claim deductions for contributions made to these retirement schemes. The National Pension Scheme is a voluntary contribution-based pension system, while the Atal Pension Yojana aims to provide pension benefits to unorganized sector workers. Both schemes offer taxpayers avenues to build a retirement corpus while reducing their taxable income.
Basics of Section 80CCD
The Income Tax Act allows individuals aged between 18 and 60 years to avail of tax deductions for contributions made towards the Pension Scheme of the Central Government, National Pension Scheme (NPS), or Atal Pension Yojana (APY).
Three parts of section 80CCD allow tax deduction subject to different conditions and limitations.
Note: If the taxpayer opts for the new tax regime, then they will not be eligible to claim the deduction under this section.
Sec 80CCD (1)
Section 80CCD(1) allows tax deductions to all individuals. Further, this section is also applicable to NRI individuals.
Below are the deduction limit under this section:
Category
Maximum Deduction Limit
In case of a Salaried Individual
10% of the Salary (Basic + DA) up to INR 1.5 lakh
In case of Self Employed Individual
20% of Gross Total Income up to INR 1.5 lakh
Sec 80CCD (2)
Employers can indeed contribute to an employee’s NPS (National Pension Scheme) account, and these contributions can be equal to or exceed the employee’s contributions. Section 80CCD(2) specifically covers such employer contributions for salaried individuals.
Below are the deduction limits under this section:
Category
Maximum Deduction Limit
In case of a Salaried Individual
14% of the Salary for Government Employees and 10% of the Salary in case of Other Employees
In case of Self Employed Individual
The deduction under this section is not available for self employed individuals
Sec 80CCD(1B)
Section 80CCD(1B) of the Income Tax Act allows individuals to claim an additional deduction for contributions made to the National Pension Scheme (NPS), up to a maximum of INR 50,000. This deduction is over and above the deductions available under Section 80CCD(1) and Section 80CCD(2). Therefore, taxpayers can claim deductions under all these sections simultaneously when filing their returns for the relevant financial year.
Note: The INR 50,000 deduction under Section 80CCD(1B) is independent of the cumulative threshold limit of INR 1.5 lakh that applies to Section 80C, Section 80CCC, and Section 80CCD(1).
Example to Illustrate the Deduction
Example 1: Ajay, a salaried individual, makes an NPS contribution of INR 30,000.
Calculation:
Under Sec 80CCD(1): Ajay can claim a deduction for his contribution up to 10% of his salary, subject to the overall limit of INR 1.5 lakh (along with Sections 80C and 80CCC). In this case, Ajay’s contribution of INR 30,000 falls within this limit.
Under Sec 80CCD(1B): Ajay can claim an additional deduction of INR 30,000 for his NPS contribution. This is over and above the INR 1.5 lakh limit applicable under Section 80C, Section 80CCC, and Section 80CCD(1).
Thus, Ajay can claim a total deduction of INR 30,000 under Section 80CCD(1B) for his NPS contribution.
His salary structure is as below:
Basic Salary
INR 3,50,000
Dearness Allowance
INR 1,50,000
Investments under Section 80C
INR 80,000 (Hence, Section 80C available limit is INR 1,50,000 – INR 80,000 = INR 70,000)
When determining the eligible deduction under NPS, the amount is the lesser of the following:
(i) The actual NPS contribution, which is INR 30,000
(ii) 10% of Basic Salary plus DA, amounting to INR 50,000
Thus, Ajay can claim a deduction of INR 30,000 under Section 80CCD(1) for the financial year.
If the total investments under Section 80C are INR 1,30,000, then the deduction is capped at the remaining amount of INR 20,000.
For instance, Mr. Harshil, a Central Government employee, contributes INR 40,000 to the NPS scheme, with his employer also contributing an identical amount of INR 40,000.
His salary structure is as below:
Basic Salary
INR 4,50,000
Dearness Allowance
INR 1,50,000
Investments under Section 80C
INR 70,000 (Hence, Section 80C available limit is INR 1,50,000 – INR 70,000 = INR 80,000 )
To determine the eligible deduction for NPS, you consider the lower of these two amounts:
(i) The actual NPS contribution, which is INR 40,000
(ii) 10% of Basic Salary plus DA, which is INR 60,000
Therefore, Harshil can claim a deduction of INR 40,000 under Section 80CCD(1) each financial year.
Additionally, Harshil can also claim a deduction for his employer’s contribution under Section 80CCD(2). The eligible deduction here will be the lower of these two amounts:
(i) The NPS contribution, which is INR 40,000
(ii) 14% of Basic Salary plus DA (for government employees), which is INR 84,000
Thus, Harshil can claim the entire INR 40,000 under Section 80CCD(2).
Supporting Documents
Supporting Documents Taxpayers can submit Receipts of Contribution to the Retirement Benefit Pension Scheme along with standard documents like Form 16.
Section 80D: Deduction for Medical Insurance Premium
In light of the COVID-19 pandemic, the value of having medical insurance has become clear as unforeseen health crises can lead to significant financial strain. With healthcare expenses rising and instances of illnesses on the rise, having health insurance has transformed into a vital necessity. Besides offering crucial financial support during medical emergencies, investing in health insurance also brings the added benefit of reducing tax burdens. The government encourages such investments by offering deductions under section 80D, allowing taxpayers to claim benefits up to INR 1,00,000.
What is Deduction under section 80D?
Section 80D of the Income Tax Act provides individuals and Hindu Undivided Families (HUFs) with a deduction for expenses related to medical insurance premiums, medical expenditures, and preventive health checkups within a financial year. This deduction extends to include top-up health plans and critical illness plans as well.
It’s important to note that starting from the Financial Year 2020-21, taxpayers who opt for the new tax regime cannot claim deductions under section 80D. This underscores the choice taxpayers face between availing deductions under the existing tax regime or opting for the reduced tax rates available in the new regime.
Eligibility to claim a deduction under section 80D
To qualify for a deduction under section 80D of the Income Tax Act, individuals must have incurred expenses on medical insurance premiums, medical expenditures, or preventive health checkups for the following:
Self: Any medical expenses or premiums paid by the individual for their own health insurance are eligible for deduction under section 80D.
Spouse: Expenses related to medical insurance premiums, medical treatments, or preventive health checkups paid for the spouse of the taxpayer qualify for deduction.
Dependent Children: Medical expenses, premiums for health insurance, or expenditures on preventive health checkups for dependent children are eligible for deduction under section 80D. Dependent children typically include minors or children who are financially dependent on the taxpayer.
Parents: Medical insurance premiums paid for parents, medical expenditures incurred on their treatment, or expenses related to preventive health checkups for parents also qualify for deduction under section 80D. Parents can be either dependent or non-dependent, and the deduction extends to both.
These deductions encourage individuals to secure health coverage not only for themselves but also for their immediate family members, thereby promoting better healthcare access and financial security against medical expenses.
Under Section 80D of the Income Tax Act, the following payments are eligible for deduction:
Medical Insurance Premiums: Premiums paid for health insurance covering the taxpayer (self), spouse, dependent children, and parents qualify for deduction. Payments must be made through any mode other than cash.
Preventive Health Check-ups: Expenses incurred for preventive health check-ups for the taxpayer, spouse, dependent children, and parents are eligible for deduction. Payments can be made through any mode.
Medical Expenditure for Senior Citizens: Payments made towards medical expenditures for senior citizen individuals or senior citizen parents that are not covered under any health insurance scheme are eligible for deduction.
Contribution to CGHS or Government-Approved Scheme: Contributions made to the Central Government Health Scheme (CGHS) or any other health scheme notified by the government also qualify for deduction.
Deduction Limits:
For individuals below 60 years of age, the overall deduction limit is up to INR 25,000. This includes a maximum of INR 5,000 for preventive health check-ups.
For senior citizens (aged 60 years or above), the deduction limit is up to INR 50,000. This includes a maximum of INR 5,000 for preventive health check-ups.
An additional deduction of up to INR 25,000 is available if the taxpayer pays for the medical insurance of their parents who are senior citizens.
Therefore, senior citizens can claim a total deduction of up to INR 75,000 (INR 50,000 + INR 25,000).
These deductions encourage individuals to invest in health insurance and preventive healthcare measures while providing financial relief for medical expenditures, particularly for senior citizens who may face higher healthcare costs.
Deduction limit for Premium paid
Premium paid for
Deduction for Self and family
Deduction for parents
Preventive Health Check-up cost
Maximum Deduction
Self and Family who are <60 years
25,000
–
5,000
25,000
Self, Family and Parents <60 years
25,000
25,000
5,000
50,000
Self and Family are <60 years AND Parents >60 years
25,000
50,000
5,000
75,000
Self, family, and parents are >60 years
50,000
50,000
5,000
1,00,000
The following table shows the overall limit for 80D deduction in the case of HUF:
Premium paid for
Deduction for premium payment
Preventive health checkup
Maximum deduction
Members of HUF are of<60 years
25,000
5,000
25,000
Members of HUF are of >60 years
50,000
5,000
50,000
Let’s understand with an example
Let’s break down the example of Dev and how deductions under Section 80D would apply to him:
Dev, a non-senior citizen, has taken medical insurance coverage for his family and also for his senior citizen parents. Here are the details of his payments:
Medical Premium for Family: Dev pays INR 32,000 for the medical insurance premium covering himself, his spouse, and dependent children.
Medical Premium for Senior Citizen Parents: Dev pays INR 37,000 as a medical insurance premium for his senior citizen parents.
Medical Expenditure for Senior Citizen Parents: Additionally, he incurs INR 15,000 on medical expenses for his senior citizen parents.
Now, let’s calculate the deduction Dev can claim under Section 80D:
For himself, spouse, and dependent children: Dev can claim a deduction of up to INR 25,000 (maximum limit for individuals below 60 years).
For his senior citizen parents:
Medical insurance premium: Dev can claim a deduction of up to INR 50,000 (maximum limit for senior citizens).
Medical expenditure: Dev can also claim a deduction of INR 15,000 incurred on medical expenses for his senior citizen parents.
Therefore, the total deduction Dev can claim under Section 80D is INR 25,000 (for self and family) + INR 50,000 (for senior citizen parents’ premium) + INR 15,000 (for senior citizen parents’ medical expenditure) = INR 90,000.
This example illustrates how Dev can maximize his deductions by covering both his family and his senior citizen parents under medical insurance, while also claiming medical expenditure for his parents. These deductions help in reducing his taxable income, providing financial relief for healthcare expenses.
General Points to Note for Section 80D Deductions:
Deduction is not available for premiums paid for siblings or any other family members not listed (self, spouse, dependent children, parents).
A senior citizen includes those above 60 years, and an additional deduction is available if one or both parents are senior citizens.
Premiums paid for independent children are not eligible for deduction.
If payments are split (e.g., between taxpayer and parent), each can claim deduction for their respective contributions.
Group health insurance premiums paid by the employer cannot be claimed as a deduction by employees.
GST paid on premiums is included in the amount eligible for deduction.
Supporting Documents:
Taxpayers should maintain and submit documents such as medical insurance premium receipts, bills for preventive health check-ups, and receipts for medical expenditures to substantiate their claims under Section 80D, along with other standard documents required for filing income tax returns like Form 16 and PAN card details.
Important Keyword: Chapter VI-A, HUF, Section 80DD.
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Section 80DD: Deduction for Differently Abled Dependent
With advancements in medical technology, treatments have become more effective yet often expensive. Some illnesses and conditions leave individuals reliant on others for daily survival, imposing significant financial burdens on their families. To alleviate this strain, the Income Tax Act offers a provision under section 80DD for tax deductions.
This deduction is intended to support families financially caring for dependents with disabilities or specific medical conditions. It serves as a relief measure, acknowledging the extra costs incurred in treatment, rehabilitation, and overall maintenance of individuals needing special care. By reducing taxable income, it aims to ease the financial responsibilities shouldered by families facing these challenging circumstances.
What are the Conditions to Claim Section 80DD Deduction?
To be eligible for the deduction under section 80DD of the Income Tax Act, certain conditions must be met:
The taxpayer must be a resident Indian.
The deduction is applicable when claimed for a dependent family member, not for the taxpayer themselves.
If the dependent has already claimed a deduction under section 80U, the taxpayer cannot claim a deduction under section 80DD.
The taxpayer must have incurred expenses for medical treatment, nursing, rehabilitation, or training of the differently-abled dependent.
The taxpayer should have paid or deposited any amount under an approved scheme for the maintenance of the dependent with a disability, such as those offered by LIC or other insurers.
The disability of the dependent must be at least 40%, certified by medical authorities.
A copy of the certificate issued by medical authorities certifying the disability must be submitted along with the income tax return.
Which Medical Authority is eligible to issue the certificate?
To claim the deduction under section 80DD of the Income Tax Act, it’s crucial to obtain a medical certificate from a qualified medical practitioner. The following professionals are recognized for issuing such certificates:
A neurologist holding an MD in Neurology.
A pediatric neurologist for disabled children.
A civil surgeon or Chief Medical Officer in a government hospital.
These certificates establish the disability status required for eligibility under section 80DD. Dependents eligible for this deduction include:
Spouse
Siblings
Children
Parents
Members of a Hindu Undivided Family (HUF)
The deduction amount under section 80DD is fixed, not dependent on actual expenses incurred but cannot be nil. The extent of deduction varies based on the severity of disability:
Disabled Person: Individuals with at least 40% disability.
Severely Disabled Person: Individuals with at least 80% disability.
Taxpayers can claim this deduction to alleviate the financial burden associated with caring for dependents with disabilities, subject to the conditions specified under the Income Tax Act.
Category
Deduction Amount
Disabled Person
INR 75,000
Severly Disabled Person
INR 1,25,000
ITR Form Applicable for Section 80DD
Under section 80DD of the Income Tax Act, the following disabilities are covered for claiming deductions:
Autism
Cerebral palsy
Blindness
Low vision
Leprosy cured
Hearing impairment
Locomotor disability
Mental retardation
Mental illness
Taxpayers who meet the specified conditions can claim this deduction when filing their Income Tax Return (ITR). This deduction is applicable to individuals and Hindu Undivided Families (HUFs), and it can be claimed using any of the ITR forms such as ITR 1, ITR 2, ITR 3, or ITR 4, depending on their income sources and other factors.
Supporting Documents
To substantiate the claim for deduction under section 80DD, taxpayers need to submit the following documents along with the standard documents required for filing ITR:
Medical Certificate: Issued by a qualified medical practitioner specifying the disability.
Form 10-IA: This form needs to be filled and submitted along with the ITR, providing details of the expenditure incurred on the medical treatment, rehabilitation, etc.
Self-Declaration Certificate: A self-declaration stating that the dependent meets the criteria laid out under section 80DD.
Receipts of Insurance Premium: If any amount has been paid or deposited under an approved scheme of LIC or any other insurer for the maintenance of the dependent.
These documents collectively validate the taxpayer’s eligibility for claiming the deduction under section 80DD, thereby providing financial relief in recognition of the costs associated with caring for dependents with disabilities.
Comparison between 80U & 80DD
Parameters
80U
80DD
Eligible beneficiary
Taxpayer himself
Dependents of taxpayer
Type of beneficiary
Resident Individual
Resident Individual or HUF
Pre-requisiteof incurring expenses
Flat deduction irrespective of the expenses incurred
Flat deduction provided that expenses have been incurred for support & maintenance of dependent
Important Keyword: Chapter VI-A, HUF, Section 80DDB.
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Section 80DDB: Deduction for Treatment of Specified Diseases
Facing substantial medical expenses, particularly for serious illnesses, can pose a significant financial challenge in today’s times. These ongoing costs throughout a person’s life can impose a considerable economic burden. Therefore, Section 80DDB of the Income Tax Act offers a means to alleviate some of this financial strain by allowing you to deduct expenses incurred in treating specified severe diseases.
This provision is designed to provide relief to taxpayers who bear the brunt of medical bills associated with critical illnesses. It allows for deductions on expenses directly related to the treatment of these diseases, thereby reducing the taxable income and easing the overall financial impact.
For instance, if a taxpayer incurs substantial medical costs for treating conditions specified under Section 80DDB, such as cancer, neurological diseases, or chronic renal failure, they can claim deductions accordingly. This deduction helps in mitigating the financial burden that arises from extensive and recurring medical expenditures.
Section 80DDB of the Income Tax Act
Section 80DDB of the Income Tax Act offers a significant provision aimed at easing the financial burden of medical treatment for specified severe diseases. This deduction is available to individuals and Hindu Undivided Families (HUFs) who incur expenses towards the treatment of themselves or their dependent family members.
Diseases covered under 80DDB
The diseases covered under Section 80DDB include:
Neurological Diseases: Listed with a disability of at least 40% and above, such as Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, and Parkinson’s Disease.
Malignant Cancer
AIDS
Chronic Kidney Failure
Haemophilia
Thalassemia
Eligibility to claim 80DDB deduction
To be eligible for claiming the deduction under Section 80DDB, the taxpayer must meet the following criteria:
Individual: The individual taxpayer must either be undergoing treatment for one of the specified diseases or must be paying for the treatment of their dependent family members, which includes children, spouse, parents, or siblings.
HUF: The deduction can be claimed by the Karta of the HUF or any member of the HUF for the treatment of their dependent family members.
This provision acknowledges the financial strain associated with treating severe illnesses and aims to provide relief by allowing taxpayers to reduce their taxable income by the amount spent on medical treatment for these diseases. It underscores the government’s commitment to supporting healthcare expenses and providing financial assistance to individuals and families facing significant medical challenges.
Deduction limit for section 80DDB
The deduction amount will depend on the age of the person for whom such expenses are incurred.
Age of the person who is undergoing the treatment
Deduction Limit
< 60 years
INR 40,000 or actual expense whichever is less
>= 60 years
INR 1,00,000 or actual expense whichever is less
Section 80DDB of the Income Tax Act offers a crucial deduction specifically aimed at easing the financial burden of medical treatment for specified severe diseases. Here are some important points to understand about this provision:
Limitation to Actual Expenditure: The deduction under Section 80DDB is restricted to the actual amount spent on medical treatment for specified diseases. Taxpayers can claim this deduction only up to the extent of their expenses incurred.
Age Criteria for Deduction: The eligibility for deduction under Section 80DDB is determined based on the age of the individual receiving the medical treatment, not the age of the taxpayer claiming the deduction. This ensures that individuals of all ages facing severe diseases can benefit from this provision.
Prescription Requirement: Effective from 1st April 2016, a crucial requirement for claiming the deduction is obtaining a prescription for the treatment from a specialist. This specialist can be from any recognized hospital, not necessarily a government one. This measure ensures that the medical treatment is well-documented and legitimate.
Adjustment with Reimbursements: When claiming a deduction under Section 80DDB, taxpayers must adjust the claimed amount with any reimbursements received from insurance companies or employers. This prevents double benefits and ensures fair tax treatment.
Ineligibility under New Tax Regime: Taxpayers opting for the new tax regime introduced in recent years are not eligible to claim deductions under Section 80DDB. This highlights the differentiation in tax benefits between the old and new tax regimes.
Non-Applicability to Certain Incomes: Deductions under Section 80DDB cannot be used to offset taxes on short-term capital gains under Section 111A, long-term capital gains, or incomes taxed at special rates. This specifies the types of incomes against which this deduction cannot be applied.
How is the Deduction Calculated Under Section 80DDB?
Actual expenses for treatment
xxx
Maximum (INR 40,000/1,00,000)
xxx
Whichever is lower
xxx
Less: Insurance claim
(xxx)
Amount of deduction
xxx
To understand the calculation better, let us take an example:
Let’s break down the scenarios for Abhijeet and Ashutosh regarding their eligibility for deduction under Section 80DDB based on their medical expenses and reimbursements:
Scenario 1: Abhijeet
Abhijeet is 35 years old.
He incurred medical expenses of INR 70,000 on the treatment of a specific disease.
He received a reimbursement of INR 25,000 from the insurance company.
To calculate Abhijeet’s eligible deduction:
Total medical expenses incurred: INR 70,000
Reimbursement received: INR 25,000
Deductible amount under Section 80DDB:
Deductible amount = Total medical expenses – Reimbursement received
Deductible amount = INR 70,000 – INR 25,000
Deductible amount = INR 45,000
Since Abhijeet’s age (35 years) is less than 60 years, he can claim a deduction up to the permissible limit for his age category. Therefore, he can claim a deduction of INR 45,000 under Section 80DDB.
Scenario 2: Ashutosh
Ashutosh is 40 years old.
He incurred medical expenses of INR 70,000 on the treatment of a specific disease.
He received a reimbursement of INR 50,000 from the insurance company.
To calculate Ashutosh’s eligible deduction:
Total medical expenses incurred: INR 70,000
Reimbursement received: INR 50,000
Deductible amount under Section 80DDB:
Deductible amount = Total medical expenses – Reimbursement received
Deductible amount = INR 70,000 – INR 50,000
Deductible amount = INR 20,000
In this scenario, Ashutosh cannot claim a deduction under Section 80DDB because the reimbursement he received (INR 50,000) exceeds the permissible limit for deduction. According to Section 80DDB, the deduction is allowed only for the amount of expenditure incurred beyond any reimbursements received.
It’s important to note that if Ashutosh were a senior citizen (age 60 years or above), he would be eligible to claim a deduction up to INR 1,00,000, provided he meets the other conditions specified under Section 80DDB.
Required documents
For claiming the deduction under this section, the invoices are required for the expenditure. Further, it is mandatory to provide valid proof via the certificate of the disease. A medical practitioner can issue the certificate as shown in the table below.
Disease
Eligible Person who can issue certificate
Neurological Diseases where the disability level is proven to be 40% and above
any degree that the medical council of India recognizes as equivalent.
Malignant Cancers
Any specialist who has a postgraduate degree in general or internal medicine
Or
any degree that the Medical Council of India recognizes as equivalent.
AIDS (Full Blown Acquired Immuno-Deficiency Syndrome)
Any specialist who has a postgraduate degree in general or internal medicine
Or
any degree that the medical council of India reconizes as equivalent.
Chronic Renal Failure
Chronic Renal Failure A nephrologist who has an MD degree in Nephrology. Or a urologist who has a Master Chirurgiae (M.Ch.) degree in Urology
Or
any degree that the Medical Council of India recognizes as equivalent.
Hematological Disorders (i) Haemophilia (ii) Thalassaemia
A specialist who has an MD degree in Hematology
Or
any degree that the Medical Council of India recognizes as equivalent.
Content of Certificate
When claiming deductions under Section 80DDB for medical expenses incurred on specified severe diseases, it’s crucial to ensure that the necessary certificate contains the following details:
Name and Age of Patient: The certificate should clearly state the name and age of the patient for whom the medical treatment was undertaken.
Name of the Disease: It should specify the name of the disease for which the treatment was received. This ensures clarity on the nature of the medical condition being treated.
Details of the Specialist: The certificate must include comprehensive details of the specialist who issued the prescription. This should cover:
Name: Full name of the specialist.
Address: Complete address of the specialist’s place of practice.
Registration Number: Registration number of the specialist with their respective medical council or authority.
Qualification: Details of the specialist’s medical qualifications.
Hospital Details (if applicable): If the medical treatment was undertaken in a government hospital, the certificate should also include:
Name: Name of the government hospital.
Address: Complete address of the hospital.
These details are essential to substantiate the claim for deduction under Section 80DDB while filing Income Tax Returns (ITR). Taxpayers must ensure that the certificate provided by the specialist meets these requirements to validate their claim effectively.
ITR Form Applicable for Section 80DDB
Regarding the ITR forms applicable for claiming deduction under Section 80DDB, individuals and Hindu Undivided Families (HUFs) can file their tax returns using any of the following forms based on their income sources and complexity of finances:
ITR 1: For individuals having income from salaries, one house property, other sources (excluding winnings from lottery and income from race horses).
ITR 2: For individuals and HUFs not having income from business or profession.
ITR 3: For individuals and HUFs having income from business or profession.
ITR 4: For individuals, HUFs, and firms (other than LLPs) having presumptive income from business or profession.
