Section 80DDB of ITA, 1961 : Section 80Ddb: Deduction In Respect Of Medical Treatment, Etc

Explanation using Example

Imagine Mr. Sharma is a resident of India and 65 years old. In the previous financial year, he paid ₹80,000 for his own medical treatment for a specified disease. Mr. Sharma obtained the required prescription from a qualified neurologist. Since he is a senior citizen, under Section 80DDB of the Income-tax Act, 1961, he is eligible to claim a deduction of ₹100,000 or the actual amount paid, whichever is less, from his taxable income. However, since he has paid ₹80,000, he can claim the entire amount as a deduction because it is less than the maximum limit of ₹100,000 for senior citizens.

Additionally, if Mr. Sharma had received ₹30,000 as reimbursement from his health insurance, the deduction he could claim would be reduced by that amount. Therefore, he would be eligible to claim only ₹50,000 (₹80,000 - ₹30,000) under Section 80DDB.