Section 80DDB of Income Tax Act – Deduction Limit and Diseases Covered

Section 80DDB offers genuine financial relief for families managing the treatment cost of serious illnesses — but the deduction requires precise documentation, including a specialist certificate meeting exact criteria. Understanding exactly which diseases qualify, how insurance reimbursement affects your claim, and what the certificate must contain ensures you claim the full benefit you are entitled to.

This page covers:

• What Section 80DDB covers
• Who can claim the deduction
• Deduction limits by financial year and age category
• Specified diseases eligible for deduction
• How reimbursement affects your claimable amount
• How to obtain the required medical certificate
• Difference between Section 80DD and 80DDB

• Documentation required to claim the deduction

  
  
  

Section 80DDB is one of the deductions available under Section 80 of the Income Tax Act, aimed at easing the financial burden of serious illnesses. Individuals and HUFs can claim a deduction on expenses incurred for treating specific diseases listed under Rule 11DD.

Key overview

• Available to resident individuals and HUFs only — cannot be claimed by companies, partnership firms, or other entities
• Covers actual medical expenses for specified diseases like cancer, AIDS, chronic renal failure, Parkinson's disease, and certain neurological disorders
• Can be claimed for the taxpayer's own treatment or for a dependent family member
• If treatment costs are covered by insurance or reimbursed by the employer, the reimbursed amount must be deducted from the claimable amount
• The taxpayer must be a resident of India to be eligible

1. Residential status: Available only to resident individuals and HUFs — non-residents are not eligible
2. Treatment expenses for specified persons: Can be claimed for treatment of self or dependants (parents, spouse, children, siblings wholly or mainly dependent on the taxpayer)
3. Prescription from a specialist doctor: Must obtain a prescription specifying disease details, patient information, and disability level where applicable
4. Actual amount spent or specified limit: Deduction is limited to whichever is less

Worked example: If an individual spent Rs. 80,000 in FY 2024-25 treating a specified illness and received Rs. 30,000 from insurance, they can claim only Rs. 10,000 (Rs. 40,000 minus Rs. 30,000). For a senior citizen in the same situation, the claim would be Rs. 70,000 (Rs. 1,00,000 minus Rs. 30,000).

The list is not exhaustive — other diseases may be included based on disability severity and specialist certification, per Rule 11DD.

Eligibility hinges on adjustments made for insurer payments or employer reimbursement. If a taxpayer spends Rs. 60,000 on treatment, they can claim up to Rs. 40,000 under Section 80DDB. If they receive Rs. 30,000 from an insurer, the deductible amount reduces to Rs. 10,000 (Rs. 40,000 minus Rs. 30,000). If the insurer pays more than the applicable limit (e.g., Rs. 50,000 against a Rs. 40,000 cap for non-seniors), no deduction is possible under this section.

For managing medical expenses not fully covered by insurance, Bajaj Finance offers a top-up loan of up to Rs. 1 crore without any end-use restriction, providing flexibility for families facing significant treatment costs. Check your eligibility for a home loan from Bajaj Finance today.

1. For private hospital treatment: Obtain the certificate directly from a specialist doctor holding a postgraduate or equivalent degree in General Medicine or the relevant field
2. For government hospital treatment: The certificate must be issued by a full-time specialist working in that hospital with similar recognised qualifications
3. Certificate must include: Patient's name and age, name of the disease/ailment, specialist's name/address/registration number/qualification
4. For government hospital cases: Also mention the hospital's name and address

Form 10-I is no longer required, simplifying the process for taxpayers.

Section 80DD allows deductions for the care, support, and maintenance of a dependent family member with a permanent disability, including rehabilitation and training expenses. Section 80DDB relates specifically to expenses actually incurred for treating specific serious illnesses such as cancer or kidney failure. Deductions under 80DD are more regular and tied to long-term disability care, while 80DDB depends on active treatment of specified medical conditions.

Managing serious illness treatment requires careful financial planning, and many families find themselves needing additional funds beyond insurance coverage. Planning for medical expenses while building wealth through property investment is a smart financial strategy — home ownership provides both security and potential tax benefits beyond medical deductions. Bajaj Finance offers comprehensive financing solutions with processing approval in just 48 Hours*.

Section 80DDB provides valuable relief for taxpayers managing serious illness treatment costs — understanding the eligibility criteria, maintaining proper documentation, and following prescribed formats ensures you can access the full benefit available. Bajaj Finance offers home loans from 7.25% p.a.* with amounts up to Rs. 15 Crore* and tenures up to 32 years. Check your eligibility today.