Tax Relief Expenditure on Serious Diseases

A deduction upto ₹ 40,000/- on account of expenditure on medical treatment of specified diseases is allowed from the total income of the assessee under the provisions of section 80DDB of the Income-tax Act, 1961. The limit is increased to ₹ 60,000/- and ₹ 80,000/- if the amount is paid on the treatment of a senior citizen (an individual of the age of 60 years and above) and very senior citizen (an individual of the age of 80 years and above) respectively. The diseases are specified in the Rule 11DD of the Income-tax Rules, 1962 which inter-alia, include cancer, AIDS, hemophilia etc. In addition to the above, a deduction upto ₹ 25,000 (30,000 in case of a senior citizen) is allowed under section 80D of Income Tax Act, 1961 on account of health insurance premium. In case of a very senior citizen, the deduction of ₹ 30,000 on account of medical expenditure is allowed under said section 80D if he does not have a health insurance policy.

 This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.