The Hindu Business Line : Is medical expense tax exempt?

MY FATHER was suffering from cancer before his death. Can I claim the tax deduction under Section 80DDB in respect of the expenditure incurred on his treatment?

Jairam

Reply

The expenditure incurred on medical treatment by an individual for himself or a dependent where the assessee is a resident in India will qualify under Section 80DDB provided the disease or ailment is specified in Rule 11DD. The deduction that can be claimed will be Rs 40,000 and if the person undergoing the medical treatment is 65 years or more at any time during the previous year, it will be Rs 60,000.

The deduction will be available if a certificate is produced from a specialist as may be prescribed and working in a government hospital. One of the diseases mentioned in Rule 11DD is malignant cancer. If your father was suffering from a malignant cancer you would be able to claim the deduction. You may, however, note that the deduction cannot exceed the limits stated above and also will be restricted to the extent of money actually spent on the treatment.

You may also note that the amount of deduction will be reduced by any amount received as insurance from an insurer or reimbursement by an employer for the medical treatment of the person.

(Mail your queries to taxtalk@thehindu.co.in or by post to `Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.)

Jairam

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