Claiming deduction of medical expenses & medical premium under sections 80D, 80DD, 80DDB, & 80U

Recent times have taught us all how important it is to focus on our health. People generally tend to forget about medical expenses and medical insurance premiums while filing tax returns. They don’t know that they can avail a deduction of medical expenses incurred & medical premium paid by them in a particular financial year. Today’s in this article we are going to explain the sections 80D, 80DD, 80DDB & 80U of the Income Tax Act, 1961 which entails the provisions related to such deduction.

So, without further ado let’s discuss. Happy reading!!

Section 80D – Deduction in respect of medical insurance premium, CGHS (Central Government Health Scheme) contribution, preventive health checkup & medical expenditure.

Who is an eligible assessee to avail deduction under section 80D?

Any Individual or HUF is an eligible assessee to avail deduction under section 80D. Please note that the non-resident individual assessee is also eligible for availing deduction under section 80D.

Which payments are eligible for deduction under section 80D?

The following payments are eligible for deduction under section 80D:-

Medical Insurance Premium - An Individual assessee can claim a deduction for the medical insurance premium paid for the health insurance of self, spouse, parents, and dependent children. In the case of a HUF assessee, a deduction can be availed in respect of the health insurance premium paid for any member of HUF.
Medical Expenditure - Medical expenditure incurred on the health of senior citizens (age 60 or more) can be claimed under section 80D, for self or any family member or parents in case of the individual assessee or members in case of HUF, if not covered under any health insurance.
Preventive Health Checkup - Payment for the preventive health checkup for self, spouse, dependent children & parents is also covered for individual assessee under section 80D.
Government Health Scheme - The contribution made to the CGHS (Central Government Health Scheme) or any other notified government scheme by an individual assessee.

What is the maximum limit of deduction allowed under section 80D?

The maximum limit of the amount allowed as deduction under section 80D, is given as below:-

Individual Assessee	Maximum Limit
Medical Insurance Premium (self, spouse & dependent children) + CGHS Contribution (if any) + Preventive Health Check-up	Up to Rupees 25,000/-
Additional deduction (Medical insurance premium for parents)	Up to Rupees 25,000/- (If the age of parents less than 60 years) Up to Rupees 50,000/- (If the age of parents is 60 or more)
Medical Expenditure of Senior Citizens (age 60 or more, if not covered under any health insurance plan)	Up to Rupees 50,000/-

P.S. In case both the individual assessee and his parents are senior citizens i.e., age 60 or above, then the maximum limit allowed to him as deduction under section 80D is Rupees 1,00,000/-.

Also, note the mode for payment of medical insurance or medical expenditure should be any other mode than cash to avail the deduction under section 80D, except for the preventive health checkup payment which can be made in cash up to the aggregate of Rupees. 5,000 for self, spouse, dependent children & parents.

HUF Assesses	Maximum Limit
Medical Insurance Premium	Up to Rupees 25,000/- (If the age of members insured is less than 60 years) Up to Rupees 50,000/- (If the age of members insured is 60 or more)
Medical Expenditure of Senior Citizen Members (age 60 or more, if not covered under any health insurance plan)	Up to Rupees 50,000/-

What will happen in case the medical insurance premium is paid in a lump sum for more than one year?

In case, the medical premium is paid for more than one year, the deduction for each relevant previous year shall be allowed, equal to the appropriate fraction of the amount i.e, lump sum premium paid divided by the total number of the relevant previous years in which insurance is in force.

Section 80DD – Deduction in respect of medical treatment and maintenance of handicapped dependent relatives.

Who is an eligible assessee to avail deduction under section 80DD?

As per section 80DDB, a resident Individual & HUF is an eligible assessee who can claim the deduction.

Which payments are eligible for deduction under section 80DD?

As per Section 80DD, the expenses incurred on medical treatment or maintenance of a handicapped dependent relative can be claimed by a resident individual or HUF. For the purpose of this section, relative means spouse, brother, sister, children, parents in case of individual and any member in case of HUF.

What is the amount of deduction allowed under section 80DD?

The amount of deduction allowed under section 80DD is:-

In case of normal disability i.e, where a dependent relative is disabled more than 40% but less than 80%	Rupees 75,000/-
In case of severe disability i.e, where a dependent relative is disabled more than 80%	Rupees 1,25,000/-

P.S. The aforesaid deduction is allowed irrespective of the actual expenditure incurred by the eligible assessee. Also, in case the dependent himself or herself claimed a deduction under section 80U then the deduction under section 80DD cannot be claimed.

Section 80DDB – Deduction in respect of the medical treatment of specified diseases.

Who is an eligible assessee to avail deduction under section 80DDB?

A resident Individual & HUF can claim the deduction under section 80DDB.

Which payments are eligible for deduction under section 80DDB?

The expenses incurred on medical treatment of specified diseases by Individual assessee for self, or dependent relative i.e, spouse, children, parents, brother or sister, and by HUF for any dependent member is eligible for deduction.

What is the maximum limit of deduction allowed under section 80DDB?

As per section 80DDB, the maximum amount of deduction allowed is as follows:-

In case the age of eligible assessee or dependent relative or member (if HUF), for whom expenses are incurred aged below 60 years	Up to Rupees 40,000/-
In case the age of eligible assessee or dependent relative or member (if HUF), for whom expenses are incurred aged below 60 years	Up to Rupees 1,00,000/-

P.S. A certificate from a concerned disease specialist is required to avail the deduction under section 80DDB. Also, in case any reimbursement of medical expenses incurred is received then it shall be reduced from the deduction.

Section 80U – Deduction for handicapped persons

Who is an eligible assessee to avail deduction under section 80U?

Resident Individuals suffering from physical disability can claim deduction under section 80U.

What is the amount of deduction allowed under section 80U?

As per section 80U, a fixed amount of Rupees 75,000/- is allowed as a deduction to resident individuals who have a normal disability. In case of a severe disability, a resident individual can claim the deduction of Rupees 1,25,000/-.

P.S. A certificate from a recognized medical authority is required to avail the deduction under section 80U.

Hope, this article has cleared all your doubts related to sections 80D, 80DD, 80DDB & 80U of the Income Tax Act, 1961, and now you will not forget to claim medical expenses while filing the return. In case of any queries please feel free to reach out to us, our team of professionals is always there to assist you.