Under Section 80DDB of the Income Tax Act, you can claim deductions for medical expenses incurred in the treatment of specified critical illnesses for yourself, your spouse, children, parents, or dependent relatives. The eligible illnesses include diseases like cancer, chronic renal failure, neurological disorders, and specified heart ailments, among others. Ensure that the medical treatment falls within the specified illnesses mentioned in the Act.
Required Documents
To claim deductions, you will need to gather and maintain the necessary documents. These include:
- Medical Certificate: Obtain a medical certificate in the prescribed format (Form 10-I) from a specialist doctor working in a government hospital or a specialist working in a hospital approved by the government. The certificate should specify the name of the patient, the critical illness, and the expenses incurred.
- Prescription and Bills: Keep all the medical bills, prescriptions, and payment receipts as proof of the expenses incurred in the treatment of the critical illness.
Claiming Deductions
To claim deductions for critical illness expenses while self-filing your tax return, follow these steps:
- Total up the medical expenses incurred for the treatment of the specified critical illness during the financial year.
- In the tax return form, locate the section that allows deductions for medical expenses incurred for critical illnesses. Generally, this section is labeled as "Deductions" or "80DDB."
- Provide the necessary information regarding the critical illness, the name of the patient, the total amount of eligible expenses, and the relevant financial year. Ensure accuracy while entering this information.
- Based on the eligible expenses, the tax software or the tax return form will compute the deduction automatically. Verify that the deduction is correctly calculated.
- Before submitting your tax return, carefully review all the details, including the claimed deduction for critical illness expenses. Ensure that all the information entered is accurate.
It is important to consult the Income Tax Act and seek professional advice if you have any doubts or questions regarding claiming deductions for critical illness expenses. Remember to retain the necessary documents as proof of the expenses incurred for any potential future audits or verifications.
