Tax suggestion

[Guest]

I am a working single women and have rs one lakh of taxable income p.a..I have some LICs and other saving scheme through which I am investing around 50,000/- p.a.

I am interested to know whether I can claim tax rebate on medical expenditure done for myself or for my parents however my parents are not dependent on me.Around 20,000/- is spent on dental expenditure.

Kindly suggest for the same.Thanks in advance !

[Mahir S]

80DDB:
If you have incurred expenses for the medical treatment of self or your dependents, you can claim a deduction of up to Rs. 40,000 or the actual amount paid, whichever is less, under the section 80DDB. For a senior citizen, the maximum exempted amount is Rs. 60,000, or the amount actually paid for medical expenses. To claim a deduction under this section, you need to submit a medical certificate from a doctor working in a government hospital.

[Harish Chander Bhatia]

As far as Income Tax Act is concerned no deduction except Medi-claim Insurance premium is available for you. If you are salaried and are in receipt of any Medical Allowance, then your employer may give you a total amount of Rs: 15000/- in a year subject to submissions of bills. However for dental treatment no special deduction is available.. At last NO relief from Tax Department. Section 80DDB, as explained below is for critical life threating diseases

Medical treatment of specified ailments under Section 80DDB – Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB. The maximum amount of deduction allowed from gross total income is restricted to Rs 40,000 (which goes up to Rs 60,000 if the age of the person treated is 60 years or more) on condition that no medical reimbursement is received from any insurance company or employer for this amount. In case of reimbursement the amount paid should  be reduced by the amount received if any under insurance from an insurerer or reimbursed by an employer.

For the purpose of this section in the case of an employee “dependant” means individual, the spouse, children, parents, brothers and sisters of the employee or any of them, dependant wholly or mainly on the employee for his support and maintenance.

In order to claim this deduction, however, you will have to submit Form 10-1 from a specialist doctor working in a government hospital in India, confirming the treatment of the disease.

Specified diseases and ailments for the purpose of deduction underSection 80DDB- For the purposes ofSection 80DDB, the following shall be the eligible diseases or ailments :

 (i)  Neurological Diseases where the disability level has been certified to be of 40 percent 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.

 

AI Summary

Medical expense deduction under 80DDB requires government doctor certification; reimbursements reduce deduction and dental costs excluded. Medical expense deduction applies only for treatment of specified serious ailments and requires a specialist's certificate from a government hospital; the deductible amount is capped and must be reduced by any reimbursement from an insurer or employer. Mediclaim insurance premiums may be separately allowable and employer medical allowance requires substantiation. Routine dental treatment is generally excluded and dependants must be financially dependent on the taxpayer to qualify.