Deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 My neighbouor's child has gone through Kidney transplant costing Rs.175000.

whether any deduction is available to him under income tax act???

Please give reply in detail with section.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 September 2012 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
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.
A certificate would be required from a specialist working in a government hospital, as proof for the specified ailment.

CA Ilayaraja

CA Ilayaraja (Expert)
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06 September 2012 Section 80 DDB for Treatment of Specified diseases covers Reanal failure(Kidney failures) so the treatment is eligible for deduction.

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 September 2012 Yes, Specially Not Mentioned of This Disease Under Income Tax Act, But I Think This Comes Under savior Disease, & Can Be Taken as Deduction.
But This Can be Contradictory.

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