Deduction u/s 80ddb

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 Mr. X is a bank employee and his wife is a cancer patient. he receives 60% of Medical expenses reimbursed from employer. what is the amount of deduction he can claim under sec80ddb? the amount alllowable u/s 80ddb is 40000 is that to b considered on 40% of amount or whole of 100% medical expense?

Santosh Mishra

Santosh Mishra (Expert)
Follow

27 February 2013 Exemption is equal to amount actually spent by you or 40000 whichever is less. This amount is reduced by any amount reimbursed by employer.

Hence, your exemption would be limited to 40%

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 sir can u plz give me an example to explain the calculation as for 80ddb...

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

20 July 2024 Certainly! Let's go through an example to understand how the deduction under Section 80DDB for treatment of specified diseases is calculated:

### Example:

**Scenario:**
Mr. Sharma, aged 60 years, is suffering from chronic renal failure and has incurred medical expenses for its treatment during the financial year 2023-24. He is eligible to claim a deduction under Section 80DDB for these expenses.

**Details:**
- Age of Mr. Sharma: 60 years (Senior citizen)
- Medical expenses incurred: Rs. 80,000

**Calculation of Deduction under Section 80DDB:**

1. **Maximum Deduction Allowed:**
- For senior citizens (age 60 years and above), the maximum deduction allowed under Section 80DDB is Rs. 1,00,000.

2. **Actual Expenses Incurred:**
- Medical expenses incurred by Mr. Sharma: Rs. 80,000

3. **Amount Eligible for Deduction:**
- The deduction allowed is the lesser of:
- Actual expenses incurred: Rs. 80,000
- Maximum deduction limit for senior citizens: Rs. 1,00,000

In this case, the actual expenses incurred are Rs. 80,000, which is less than the maximum deduction limit of Rs. 1,00,000.

Therefore, Mr. Sharma can claim a deduction of Rs. 80,000 under Section 80DDB for the financial year 2023-24.

### Key Points:
- **Eligibility:** The deduction under Section 80DDB is available to individuals for expenses incurred on the treatment of specified diseases for self or dependent family members.
- **Specified Diseases:** The diseases covered include chronic renal failure, cancer, AIDS, thalassemia, etc., as specified under the Income Tax Rules.
- **Documentation:** To claim the deduction, Mr. Sharma would need a prescription from a specialist doctor, along with the bills and receipts of the expenses incurred.
- **Tax Filing:** He should report the deduction under Section 80DDB while filing his income tax return for the relevant assessment year.

This example illustrates how an individual can calculate and claim deduction under Section 80DDB for medical expenses incurred on specified diseases. It's advisable to keep proper documentation and consult a tax advisor for specific guidance based on individual circumstances.