According to Indian tax legislation, medical costs incurred for the treatment of particular medical disorders may qualify for tax deductions. These deductions are primarily available under Section 80DDB of the Income Tax Act. Costs associated with treating particular diseases and ailments for an individual, their dependents, or any member of the Hindu Undivided Family (HUF) may be deducted under Section 80DDB.
Eligibility and Deduction Limits
To claim deductions under Section 80DDB, you must meet certain eligibility criteria. The deduction is available for individuals and HUFs who have incurred medical expenses for specified diseases such as cancer, neurological disorders, chronic renal failure, or AIDS. The deduction amount varies based on the age of the patient and the actual expenses incurred, subject to a maximum limit of ₹1,00,000. Senior citizens (aged 60 years or above) may be eligible for higher deduction limits.
Required Documentation
To claim deductions for medical expenses under Section 80DDB, it is essential to maintain proper documentation. Retain bills, receipts, medical certificates, and prescriptions as evidence of the expenses incurred. The documents should clearly mention the nature of the disease or ailment, the treatment received, and the corresponding expenses. These documents will help substantiate your claims during the tax filing process.
Claiming Deductions and Tax Filing
To avail the deduction for medical expenses, you need to file your income tax return using the appropriate form, such as ITR-1 or ITR-2. Accurately report your income, deductions, and exemptions, including the eligible medical expenses under Section 80DDB. Ensure that you provide the necessary details and supporting documents while filing your tax return.
By familiarizing yourself with the provisions under Section 80DDB, you can claim deductions for eligible expenses and reduce your overall tax liability. Maintain proper documentation, consult a tax professional, or refer to the Income Tax Act for personalized guidance based on your specific situation.
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