Tax benefits: Section 80DDB allows tax benefits for specified illnesses; know details here

Apr 11, 2024, 11:57:15 PM IST

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Tax-saving: What is Section 80DDB?

Section 80DDB offers a beneficial tax deduction for medical expenses for treatment of specified diseases.
Text: Centre for Investment Education and Learning (CIEL)

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Which diseases are covered under Section 80DDB?

Cancer, dementia, motor neuron diseases, Parkinson’s disease, AIDS, and chronic renal failure are among the specified ailments.

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Who can claim tax deductions under Section 80DDB?

This deduction can be claimed by resident Indians for themselves, spouse, dependent children, dependent parents or dependent siblings.

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How much tax deductions can be claimed under Section 80DDB?

The deduction is up to Rs.40,000 or the actual amount paid (whichever is less) for patients under 60 and Rs.1 lakh or actual amount (whichever is less) for patients 60 and above.

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Tax deduction under Section 80DDB: How is it calculated?

If the patient is insured, the amount that is paid by the insurer or reimbursed by an employer has to be reduced from the actual payments for calculating the amount for eligible deduction.

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