Income Tax Rebates for Cancer Patients

Tax Benefits for Cancer Patients

Taxpayers who have dependants or self have cancer can get benefits under section 80DDB and have to submit a certificate regarding the same

How and from Whom to take certificate for claiming tax rebate

Certificates can be issued by
Certificate can be taken from a Specialist (Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India)
Private Hospital: Patients getting treated in a private hospital are not required to take the certificate from a government hospital
Government Hospital: Patients receiving treatment in a government hospital have to take the certificate from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognised by the Medical Council of India.
Certificate Pre-requisites
Certificate in Form 10I is no longer required
  • The certificate must have
    • Name and age of the patient
    • Name of the disease or ailment
    • Name, address, registration number and the qualification of the specialist issuing the prescription
    • If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.
  • Details of deduction allowed under section 80DDB

    Deduction under section 80DDB is allowed for medical treatment by

    • Can be claimed by an Individual or HUF
    • Allowed to Resident Indians
    • When taxpayer has spent money on treatment of the dependant
    • Dependant shall mean spouse, children, parents and siblings. Note: In case the dependant is insured and some payment is also received from an insurer or reimbursed from employer -> such insurance or reimbursement received shall be subtracted from the deduction.

    Patients are advised to reach out to the Income tax specialists to help out with the same

    Deduction limit

  • In normal cases, the assessee (individual or HUF) is eligible for tax deduction of Rs. 40,000 or the actual amount spent, whichever is less
  • In case the person subject to medical treatment of specified disease is a senior citizen, the assessee will be eligible for tax deduction of Rs. 60,000 or the actual amount spent, whichever is less.
  • In case the person subject to medical treatment of specified disease is a super senior citizen, the assessee will be eligible for tax deduction of Rs. 80,000 or the actual amount spent, whichever is less.
  • Age of Patient Deduction allowed to assessee (individual or HUF)
    Up to 60 years Least of actual amount spent or Rs. 40,000
    Senior citizen (60-80 years) Least of actual amount spent or Rs. 60,000
    Super senior citizen (above 80 years) Least of actual amount spent or Rs. 80,000

    © Copyright OncTag 2017

    Real Time Web Analytics