Tax rebate norms on serious ailment expenses relaxed

Tribune News Service

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New Delhi, October 14

The government has made it easier to claim tax benefit on expenditure with regard to ailments such as thalassaemia, cancer, AIDS and haemophilia by doing away with the requirement of obtaining a certificate from a government hospital.

The Central Board of Direct Taxes has issued a notification amending Rule 11DD of the Income Tax Act to facilitate this. The amended rule relaxes 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, the Finance Ministry said.

“As per amended Rule 11DD, the prescription can be issued by any specialist mentioned in the amended rule. Henceforth, it will not be mandatory to obtain a certificate from a specialist working in a government hospital,” it said.

The Finance Ministry said in a statement that one of the pillars of the of the taxation proposals included in the Budget for 2015-16 was extension of benefits to the middle class. In this process, the Finance Minister announced extension of certain benefits in respect of medical treatment under Section 80DDB.

Under Section 80DDB, a deduction of up to Rs 40,000 is allowed for treatment of ailments of serious nature. The deduction is in case of senior citizen is Rs 60,000 and Rs 80,000 for very senior citizen (above age of 80 years).