Substitution of new section for section 80DDB

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Substitution
of new section for section 80DDB.

35. For section 80DDB of the Income-tax Act, the following section
shall be substituted with effect from the 1st day of April, 2004, namely:

80DDB. Deduction in respect of medical
treatment, etc.Where an assessee who is resident in India has, during the
previous year, actually paid any amount for the medical treatment of such
disease or ailment as may be specified in the rules made in this behalf by the
Board

(a) for himself or a dependant, in case the
assessee is an individual; or

(b) for any member of a Hindu undivided family, in
case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the
amount actually paid or a sum of forty thousand rupees, whichever is less, in
respect of that previous year in which such amount was actually paid :

Provided that no such deduction
shall be allowed unless the assessee furnishes with the return of income, a
certificate in such form, as may be prescribed, from a neurologist, an oncologist,
a urologist, a haematologist, an immunologist or such other specialist, as may
be prescribed, working in a Government hospital :

Provided further
that the deduction under this section shall be reduced by the amount received,
if any, under an insurance from an insurer, or reimbursed by an employer, for
the medical treatment of the person referred to in clause (a) or clause
(b) :

Provided also that where the
amount actually paid is in respect of the assessee or his dependant or any
member of a Hindu undivided family of the assessee and who is a senior
citizen, the provisions of this section shall have effect as if for the words
forty thousand rupees, the words sixty thousand rupees had been
substituted.

Explanation.For the
purposes of this section,

(i) dependant means

(a) in the case of an individual, the spouse,
children, parents, brothers and sisters of the individual or any of them,

(b) in the case of a Hindu undivided family, a
member of the Hindu undivided family,

dependant
wholly or mainly on such individual or Hindu undivided family for his support
and maintenance;

(ii) Government hospital includes a departmental
dispensary whether full-time or part-time established and run by a Department
of the Government for the medical attendance and treatment of a class or
classes of Government servants and members of their families, a hospital
maintained by a local authority and any other hospital with which arrangements
have been made by the Government for the treatment of Government servants;

(iii) insurer shall have the meaning assigned to it
in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(iv) senior
citizen means an individual resident in India who is of the age of sixty-five
years or more at any time during the relevant previous year..

Specified diseases and ailments for the purpose of deduction under section 80DDB.

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⁴³[Specified diseases and ailments for the
purpose of deduction under section 80DDB.

11DD. (1) For the purposes of section 80DDB, the following shall be the
eligible diseases or ailments :

(i) Neurological Diseases where the disability level has been
certified to be of 40% and above,

(a) Dementia ;

(b) Dystonia Musculorum Deformans ;

(c) Motor Neuron Disease ;

(d) Ataxia ;

(e) Chorea ;

(f) Hemiballismus ;

(g) Aphasia ;

(h) Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

(2) The
certificate in respect of the diseases or ailments specified in sub-rule (1)
shall be issued by the following specialists working in a Government hospital

(a)	for diseases or ailments mentioned in clause (i) of sub rule (1) - a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognised by the Medical Council of India;
(b)	for diseases or ailments mentioned in clause (ii) of sub rule (1) - an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognised by the Medical Council of India;
(c)	for diseases or ailments mentioned in clause (iv) of sub rule (1) - a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree, which is recognised by the Medical Council of India;
(d)	for diseases or ailments mentioned in clause (v) of sub rule (1) - a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognised by the Medical Council of India :

Provided that where in respect of any diseases or ailments specified in sub-rule (1),
no specialist has been specified or where the specialist specified is not
posted in the Government hospital in which the patient is receiving the
treatment, such certificate, with prior approval of the Head of that hospital,
may be issued by any other specialist working full-time in that hospital and
having a post-graduate degree in General or Internal Medicine, which is
recognised by the Medical Council of India.

(3) The certificate from the prescribed
authority to be furnished along with the return of income shall be in Form No.
10-I.]

Tax Relief for Expense on Renal Failure Patient?

There Any Tax Relief for Expense on Renal Failure Patient?

Taxworry.com

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A of Your Question,
Deductions

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My mother was hospitalised in July this year and she was
diagnosed as a Chronic Renal Failure (both kidneys are destroyed). She
is put on for dialysis twice a weak and this is supposed to be a life
long treatment for her. My questions are

• 1) She was covered under company’s group mediclaim
  policy but the claim was rejected by the Insurance company. Do I am
  eligible for any deduction under Indian Income Tax Act for the
  hospitalisation expenses?
• 2) Apart from that, can i claim for deduction under sec 80DD or 80U of Income Tax act.

Prateek Chaturvedi, Kolkata

Section 80DDB of the I T Act is for relief to people like you.In my view , you can get the deduction of Rs 40,000 (Rs 60,000 in case your mother is 65 years or more) u/s 80DDB of the I T Act because renal failure is one of the eligible disease u/s 80DDB.

The list of diseases eligible for deduction u/s 80DDB is prescribed in Rule 11DD of I T Rule, which is given as under:

11DD. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—

(a) Dementia ;

(b) Dystonia Musculorum Deformans ;

(c) Motor Neuron Disease ;

(d) Ataxia ;

(e) Chorea ;

(f) Hemiballismus ;

(g) Aphasia ;

(h) Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

Rule 11 D specifies that you have to get a certificate in Form 10-1 from – a Nephrologist having a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae
(M.Ch.) degree in Urology or any equivalent degree, which is recognised
by the Medical Council of India. So, you get a certificate from such
doctor.

The section prescribes that it should be enclosed iwth
the return, but now from Asst Yr 2007-08 ,no documents are required to
be attached with the return. Therefore, you get the certificate from
doctor and keep the proof of expenditure on your mother. You are are
advised to keep the letter of rejection of claim of insurance. The
reason is that the the dedcution is allowable as under

Expense minus Insurance claim received minus reimbursement by employer to the maximum extent of Rs 40,000 (Rs 60,000 in case of Sr. Citizen)

Can You claim deduction u/s 80DD or 80 U ?

I
think you will not get any of them- 80DD or 80U.Section 80DD provides
relief for expense on Disable person . The renal failure , in my view
is not listed within the meaning of disability . Read this answer to know the list of disease defines under the definition of disability for the purpose of section 80DD.

Section 80U is also for persons having prescribed disability .Section 80 U gives relief to patient i.e for the assessee himself/herself and not to persons who are spending but not having the disability.