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Exemption items under medical assistance for 80DDB

Ars (Manager) (44 Points)

19 July 2020

Dear CA Club friends,

I have dependent parent (mother) with later stage Parkinson's. She is completely dependent on my support for day to day.

I got to know about 80DDB section, where one could get tax benefit for medical expenses on dependent. I have collected the bills and invoices for the following items...

1. Medicines
2. Mobility support equipments - Commode, walker
3. Day-to-day care - adult diapers, medical bedding
4. MRI Scans
5. Physiotherapy support (ongoing)

My Queries are

Q1) Looking for your help to know if I can claim deductions for the above items under 80DDB during the submission of ITR-1.
Q2) If there are items to be excluded from this list for deduction, please let me know the item number.
Q3) What proofs (apart from bills and invoices) do I need to preserve? Or is it needed during the ITR-1 submission? Is there a format/certificate etc?

Looking forward your advice and support....

Thank You.

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5 Replies

CA Raj Doshi (Practising CA) (8908 Points)
Replied 19 July 2020

Https://cleartax.in/s/get-certificate-claiming-deduction-section-80ddb

Answer 1 - Yes you can claim for above items under 80DDB during submission of ITR.

Answer 2 - While the law provides deduction for medical expenses pertaining to the specified disease only, it is practically difficult to bifurcate the same. e.g. which medicine/equipments/reports and treatments are for Parkinson and those which are for any other disease which the person is suffering from.

Based on quantum of expenses, you could practically decide whether to go ahead for
1. full claim under 80DDB or 80D
2. part claim under 80DDB and part under 80D

Answer 3. You should take a certificate from the doctor only for your permanent records about the disease and the severity of the disease ( % wise ) as required by the income tax act. The same is not required to be uploaded with IT return.

PS - You can claim medical expenses under 80D for parents provided no mediclaim policy is in force for the parent. Also, medical expenses must be paid in any mode other than cash for the purpose of 80D. Further, you can liberally interpret the term "medical expenses" for the purpose of Sec 80D.

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CA Payal Gupta (Chartered Accountant) (154 Points)
Replied 19 July 2020

For your understanding, please refer the provisions of section 80DDB under Income Tax Act, 1961.

Section 80DDB: Deduction in respect of medical treatment

Eligible Assessee: An Assessee who is a Resident of India, actually paid any amount for the medical treatment of such disease or any ailment as may be specified under Rule 11DD -

For himself or a dependent, in case of individual; or
For any member of a Hindu Undivided Family (HUF), in case of HUF.

Deduction allowed: Least of the following:

Amount actually paid;
INR 40,000 Or INR 1,00,000 in case of senior citizen.

Reduction in amount eligible for deduction:

Deduction amount – Amount received*

*From Insurer, reimbursed by employer for the medical treatment of a person.

Mandatory criteria for availing deduction: Proper Prescriptttion or evidence of such medical treatment shall be available, and a certificate of such disease shall be obtained from the doctors in their respective field recognised by Medical Council of India.

On the basis of above understanding and referring to your query, please consider the following answer pointwise:

Yes, you can take deduction u/s 80DDB while filing ITR-1
There are no such expenses are defined in law, but you can avail these expenses if it is specially for the Parkinson disease and you have proper bills.
You should preserve all the bills or invoices of the medical expenses and ensure that it should contain the complete details of patients and its disease. Further, these are not required while uploading ITR-1

If you have any concerns, please do let us know.

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Ars (Manager) (44 Points)
Replied 20 July 2020

Thank you very much for the detailed response, Raj! It helped clarify my thoughts...

For your Answer 2, I am adding more details here...
Mother does not have any other ailment other than Parkinson and the resulting mobility/fall issues and recuperation. She is 69 yrs of age. I am tracking medical expenses since last April to this March - it amounted to Rs.46545. The medical expenses are climbing though.

For your Answer 3, I am adding more details here...
I have doctor's prescripttion for all past consultations - he is a MD in neurology. It includes his recommendations for MRIs, Physio and assistive equipments. And he mentioned that he can provide me with detailed report, if it can help. However, is there any specific format/template that the certificate must be provided by him? Can you share any such detail?

I also pay for my mother's health insurance policy, but it covers only when there is a hospitalization situation. In case of her disorder, we have to take care at home with support of doctor consultation and physiotherapy - so these expenses are not covered by the insurance.

Ars (Manager) (44 Points)
Replied 20 July 2020

Thanks Payal, for your answer. I was able to get further with my queries here...

With your first part of response, I understand that the max limit is Rs100000 (my mother being Senior Citizen) and my current expenses stand at Rs.46545. So it should be well below that limit, right?

Also I am unclear with the term of certificate, I do have the prescripttions where the diagnosis is present. Can you help share a sample/template of the certificate, if any?

The invoices/bills contain mother name, but not the disease name itself. Since these are computer generated, they have standard bill format. However I have the support prescripttions for the same. Would that be ok?

Thanks once again for all your help.

Read more at: https://www.caclubindia.com/forum/exemption-items-under-medical-assistance-for-80ddb-552092.asp#reply

Rs.46545

Read more at: https://www.caclubindia.com/forum/exemption-items-under-medical-assistance-for-80ddb-552092.asp#repy

CA Payal Gupta (Chartered Accountant) (154 Points)
Replied 20 July 2020

Dear Sir,

Please see my views pointwise:

1. Yes, you can take a deduction of INR 46,545 u/s 80DDB.

2. There is no such template defined in law, it would be ok if you have the diagnosed reports along with the medical expenses bills.

3. Yes, the prescripttion is ok as you said, you have a prescripttion which mentions the disease.

Further, all such bills or invoices are not required to upload on Income Tax Portal, you can take the deduction of all the medical expenses expended on your mother as she was diagnosed and you have the report of such disease.

Do let us know in case of any concerns.

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