Section 80DDB: Income Tax Deduction for Specified Diseases
The income tax deduction under section 80DDB serves as financial help for those who are suffering from a severe disease or are taking care of such dependent family members suffering from any of these diseases and finally dependent on the taxpayer. Although the one thing to be taken note of is that his deduction cannot be claimed against capital gains, loans from winnings or lotteries and such other incomes as specifically excluded.
Eligibility:
In case some expenditure has been incurred by a resident individual or any member of HUF then income tax deduction can be claimed for the same. The expenditure incurred can be claimed as deduction for
Self or
Dependent Relative
The dependent relative here includes spouse, parents, siblings, and children.
Diseases Covered:
The following diseases are covered under the ambit of section 80DDB diseases, such as:
Acquired Immuno Deficiency Syndrome (AIDS)
Aphasia
Ataxia
Chorea
Dementia
Dystonia musculorum deformans
Hemiballismus
Hematological disorders
Haemophilia
Malignant cancers
Motor neuron disease
Parkinson’s disease
Renal failure
Thalassemia
Important Point:
In case you are claiming income tax deduction under section 80DDB and simultaneously you have also received any reimbursements from the insurance policy. In such a situation the income tax benefit allowed shall be adjusted against such reimbursements.
