Under the Indian income tax laws, you can claim deductions for medical expenses incurred for the treatment of specified illnesses. These deductions are available under Section 80DDB of the Income Tax Act, 1961.
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Specified Illnesses
These include diseases such as cancer, neurological disorders, chronic renal failure, AIDS, and certain specified conditions requiring specified medical treatment.
Eligibility Criteria
To claim deductions for medical expenses, you need to meet certain eligibility criteria. These include obtaining a certificate in Form 10-I from a specialty doctor appointed by a government hospital. The certificate should specify the disease, provide details of the treatment, and mention the amount of expenditure incurred.
Deduction Limit
You can claim a deduction for medical expenses incurred on specified illnesses, up to a maximum limit of Rs. 1 lakh or the actual amount spent, whichever is lower. This means that you can avail of a deduction for the amount you spent on medical treatment, with the maximum limit set at Rs. 1 lakh.
Conditions for Deduction
To avail of the deduction, the medical expenses can be incurred on behalf of yourself, your spouse, parents, children, or dependent siblings. The expenses can include hospitalization charges, medical tests, doctor's fees, nursing charges, and the cost of medicines and drugs prescribed for the treatment.
Supporting Documents
To claim the deduction, it is essential to maintain proper records and supporting documents. These may include bills, receipts, medical certificates, and the Form 10-I certificate obtained from the specialist doctor. These documents serve as evidence of the medical expenses incurred and support your claim during the tax assessment process.
Remember to meet the eligibility criteria, obtain the necessary certificates, and maintain proper documentation to support your claim. Consult a tax advisor or financial expert for personalized guidance based on your specific circumstances.
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