<div><em><strong>The rule to claim deduction on medical treatment has been relaxed by allowing non-government specialist doctors to issue certificate, writes Sunil Dhawan</strong></em></div><div> </div><div>There's good news for taxpayers on the health front. Meeting documentary evidence in case of claiming deduction on medical treatment has been relaxed. Certain specific medical expenses are allowed to be claimed as deduction from income under section 80DDB of the Income tax Act, 1961. To claim such a deduction, one however has to furnish a certificate from a specialist working in a government hospital. This has been done away with. </div><div> </div><div>Central Board of Direct Taxes has issued a Notification relaxing the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a specialist working in a Government hospital. So, now onwards, the certificate can be issued by any specialist from a non-government sector too.</div><div> </div><div><strong>The limits for deduction</strong>: Amount incurred on medical treatment of certain specific ailments on self or dependant is allowed as deduction up to Rs 40,000 in a year. Dependant in the case of an individual would mean, the spouse, children, parents, brothers and sisters of the individual. For senior citizens who are above age 60, the limit stands at Rs 60,000. As announced in this year's budget of 2015-16, the limit in case of very senior citizens (above age 80) had been raised from Rs 60,000 to Rs 80,000. Importantly, the amount of deduction claimed under this section will be reduced by the amount received under section 80 D from any insurer. </div><div> </div><div><strong>Ailments covered</strong>: The specific ailments on whose treatment, the deduction is allowed is as per the Rule 11DD of Section 80DDB of the Income Tax Act, 1961. These are: (i) Neurological Diseases where the disability level has been certified to be of 40% and above, and including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea Hemiballismus, Aphasia, Parkinsons Disease.(ii) Malignant Cancers (iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;(iv) Chronic Renal failure ;(v) Hematological disorders like Hemophilia and Thalassaemia.</div><div> </div><div><strong>Certification</strong>: The certificate however still is to be issued by the specialist but can be a non-government hospital. For example, for Neurological Diseases a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, can issue the certificate. Similarly for Malignant Cancers an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree can issue it. </div><div> </div><div>At times, government hospitals might not have the specialist available with them. This move helps those who can benefit by claiming tax benefit. </div>
