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Tax Benefits Under Section 80D, Section 80DD and Section 80DDB

Complete guide for income tax deductions under sections 80D, 80DD and 80DDB which relate to medical expenses and health insurance or mediclaim. Good understanding will help you in substantial tax savings.Its always recommended to compare various health insurance policies in India before buying. Compare and get the best quotes from Policybazaar.com and InsuringIndia.

Section 80D

Every family has regular medical expenses. This may be towards a health insurance premium, or expenditure related to a family member’s disability/critical illness. The Income Tax Act of 1961 has made provisions to reduce this burden through tax deductions under section 80D, 80DD, 80DDB. Read on to understand how to use these sections to your benefit.

Section 80D in Respect to Health Insurance Premiums

Investments made towards payment of health insurance premiums, qualify for a tax deduction under section 80D.

(Also see: Health insurance policy exclusions)

Available Deduction - For individuals less than 65 years of age, amount of health insurance premium paid or Rs. 15,000, whichever is lesser. For senior citizens above 65 years, amount of health insurance premium paid or Rs. 20,000, whichever is lesser.

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A further deduction of Rs 15,000 could be claimed, for buying health insurance policy for your parents (Rs 20,000 if either of your parents is a senior citizen). This is irrespective of whether they’re dependent on you or not. No deductions can be claimed for in-laws.

Scope of Deduction – Individual assesses can claim deduction for premiums paid towards health insurance of self, spouse, parents and children.

For HUF assesses, premium paid for insuring the health of any member of the HUF, can be used for deduction.

Key Factors to keep in mind

1. The premium may be paid by any mode of payment, other than cash.

2.The health insurance premium that you pay must be from the taxable income applicable for the year you claim. Premiums should not be from gifts received by you.

3. Part payment of premium is allowed. For example, suppose your parents contribute 50% of their health insurance premium and you pay the balance 50% of their premium. In such a case, you could avail the deduction for the amount contributed by you and your parents too could avail deduction for their contribution.

(Also see: Employer provided health insurance vs Individual health insurance)

Section 80DD for Medical Treatment of Handicapped Dependents

If you are incurring expenditure for the treatment of your handicapped dependent, you could claim a deduction under section 80DD.

Available Deduction - Rs 50000, or actual expenditure incurred, whichever is lesser. For severe handicap conditions Rs. 1,00,000 is the deduction limit.

Scope of Deduction – Deduction can be claimed for dependent parents, spouse, children and siblings. Dependents must not have claimed any deduction for their disability.

Deductions are permissible in either of the following cases:

a) Costs incurred for medical treatment, training or rehabilitation of a disabled dependent, including amount spent for nursing.

b) Amount paid towards an insurance scheme for the maintenance of your disabled dependent in case of your untimely death.

Meaning of Disability- Disability means a person suffering from 40% or more of any of the below disabilities. A severe disability condition is  80% or more of the disabilities.

a) Blindness and Vision problems

b) Leprosy-cured

c) Hearing impairment

d) Locomotor disability

e) Mental retardation or illness

Key factors

a) Individuals would need to produce a copy of the disability certificate as issued by the central or state government medical board to claim deduction.

b) Mediclaim policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death.

c) If the disabled dependent predeceases you, the policy amount is returned to you, and treated as income for the year in which you receive it, thus fully taxable in your hands.

Section 80 DDB for Treatment of Specified diseases

Costs incurred for treatment of specified illnesses, could fetch you a tax benefit under section 80DDB.

Available Deduction - For individual assesses less than 65 years of age, a deduction limit of Rs. 40,000 is applicable. For a senior citizen, the limit is Rs. 60,000.

Scope of Deduction – Deduction is applicable for treatment of self, spouse, children, siblings, and parents, wholly dependent on you.

Diseases covered

a) Neurological Diseases (where the disability level has been certified as 40% or more).

b) Parkinson’s Disease

c) Malignant Cancers

d) Acquired Immune Deficiency Syndrome (AIDS)

e) Chronic Renal failure

f) Hemophilia

g) Thalassaemia

Key Factors

1. If you are already receiving any reimbursement for the treatment from your insurance company or employer, deductions cannot be claimed. If you are receiving partial reimbursement, the balance amount can be used for a deduction.

2.A certificate would be required from a specialist working in a government hospital, as proof for the specified ailment.

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  • Sajan

    I have a sister with 82% mental retardation,claiming for 80DD ,should i produce the certificate only or should i produce the medical bills as well ?

    • Yogi Cfp

      You just have to declare the amount while filing your taxes. However, keep the Certificate and medical bills handy in case IT department asks for it.

  • Sundar

    both my father and mother are dependant on me and come under severe disability category. Can I claim 100000 for each as 80DD tax benefit.

    • Av Suresh

      Total deduction limit specified by IT dept regarding section 80DD is Rs. 1 lakh.

  • gaju

    I have spend 1.5 lakhs for the heart bypass surgery and cancer stomach of my father in law in AIIMS delhi can I claim for the same. Can I fill the form 10(I)i any hospital as I already left that place and father in law recently passed away please suggest.

    • Av Suresh

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

      • Manas

        If parent in laws are declared as a dependend can it be the tax benefits under 80 D?

        • Av Suresh

          By law, in laws are are not permitted to be included as dependants for tax deduction purpose.

  • T R GAUTAM

    My douter is mental retardation with severe category she is dependant on me can I claim Rs 100000 as 80DD tax benefit.

    • Av Suresh

      Yes, you can claim Rs. 1,00,000 as deduction.

  • Vipin

    I spend 3 lacs on my father cancer treatment this year in private hospital. My father is getting pension but was unable to pay all the expenses from his pension. So will it be covered under 80DDB. If yes do i need to get this certified from Govt cancer hospital only.

    • Av Suresh

      Yes, you can claim under section 80DDB. Certificate from any recognized hospital would be enough.

  • rajat

    can expenses on treatment for CKD ( Chronic Kidney Disease) stage 3 be filed under chronic renal failure for benefit under 80DD

  • Jagadish Kumar Dasari

    My father suffered a severe stroke and has been totally bed ridden. Can I claim rebate under both Sections 80DD and 80DDB?

    • Av Suresh

      You cannot claim under 80DDB. However, you may claim the expenses under 80DD.

  • Rashmi

    my father had a angiplast done . can i clam that in 80ddb

    • Av Suresh

      No, it cannot be claimed.

  • Queryist

    Section 80DD – is this only for treatment? E.g. If I buy hearing aid device, can I claim deduction?

  • Srinivasan

    I have a kid who is having more than 40% heavy loss with medical ceritificate. Which section should i claim it under 80DD or 80DDB ? What would be the limit ?

    • Av Suresh

      Please check if the particular illness of your son is covered under section 80DD or 80DDB list mentioned above. The limits are Rs. 50,000 and Rs. 40,000 respectively for these two sections for more than 40% disability.

      • Srinivasan

        Thanks for your quick reply. Typo in my last post. He has a hearing loss which is more than 40%. Not a severe disability. I just require to know
        1. If it covers under 80DD or 80DDB
        2. Limit for 40% (Disability only) under that particular section

        • Av Suresh

          1. Section 80DD
          2. Maximum limit – Rs. 50,000

  • nishant

    is the deduction different from 80c deduction? i mean can i claim for exemption under 80DD if i have reached the limit of 1 lac in 80C.

    • Av Suresh

      Yes, its a different section. You can claim it even if you have reached the limit of Rs. 1 lakh in 80C.

  • Surekha

    Hi,My mother is 57 yrs of age dependent on me.She has undergone a surgery of uterus removal.Can i show it under 80DD?

  • Vasudevan

    My father has a hearing impairment from his childhood , can i claim Income tax for my parents . If so , in which section i can claim . Kindly clarify

    • Av Suresh

      Unfortunately, hearing impairment is not covered in this section.

  • Parth

    Down Syndrome through Steam Cell Treatment is covered or not can I declare under 80DD or 80DDB?

  • Rahul

    My brother is mentally challenged and as a dependent, im claiming benefit under section 80DD. My father receives pension and earnings from fixed deposit interests due to which he will be have to file IT returns this year. Can my father also claim for my brothers illness under section 80DD?

    • Av Suresh

      The same benefit cannot be claimed by two people. It can be claimed to the extent of amount contributed. For example, if you have contributed half of it and your father the other half, both of you can claim benefit of 50% each under section 80DD.

  • Ravi Thakor

    Great info sir. My sister is autistic (mentally challenged). So my father is eligible for section 80DD tax deduction. I just want to know what this tax deduction actually does??? Do they pay us money or they pay LIC premiums for the policy taken??? What is 1 lakh tax deduction mean actually means??? Does that mean my father dont have to pay Income tax or he will get relief of 1 lac per year from IT?? Plz help.

    • Av Suresh

      Ravi, deduction under section 80DD means the taxable income of the individual will reduce by Rs. 50,000 or Rs. 1,00,000, whichever is applicable. Hence, the individual would save on tax to be paid.

      • Ravi Thakor

        Ohhhhh…….thanks. Sir, what is the procedure to get help if we are eligible for Section 80DD. We are totally unaware of this. My sister’s school authority told us about this IT deduction. I know we need to get disability certificate for which we registered today in a hospital.They told us to give certificate within a week. What to do after getting certificate??? Is there any online procedure???

        • Av Suresh

          You can either claim this deduction through the employer or directly during tax filing. Certificates are not immediately needed by the IT department if you file directly. However, In case employer asks for it, you may have to produce it accordingly.