The Hindu Business Line : Deduction of medical expenses

IT WAS mentioned in these columns (Business Line, August 10) that the deduction under Section 80DDB would be Rs 40,000, and, in the case of senior citizens, Rs 60,000 or the sum actually spent, whichever is less. I understand that the deduction would be Rs 40,000 (Rs 60,000 for senior citizens) irrespective of the quantum spent. Kindly clarify whether my understanding is the correct position in law.

Srilakshmi. H

Reply

Section 80DDB permits a claim for deduction in respect of medical treatment of certain diseases and ailments incurred

by an individual on himself or his dependent spouse, children, parents, brothers and sisters; or

by a HUF on any member of the same dependent of the HUF for support and maintenance.

At present, the deduction under this section — that is, for the assessment year (AY) 2004-05 (previous year 2003-04) — is Rs 40,000 (Rs 60,000 in the case of senior citizens) or the sum actually incurred on the treatment, whichever is less. Up to the AY 2003-04 (previous year 2002-03) this deduction was a quantum deduction, that is, allowable up to the ceiling limits prescribed by the section whether or not the expenditure was incurred up to these limits.

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