QUESTION: I am a senior citizen, who had to undergo serious surgical treatment involving total expenses of Rs.3.73 lakh while I was compensated by an amount of Rs.1.10 lakh through Retired Employees Group Medical Scheme through my employer. Am I entitled to any further deduction for expenses personally met by me for the balance of Rs.2.63 lakh. I am advised that Sec. 80DD may permit deduction up to Rs.75,000. Is this advice correct?
ANSWER: Sec. 80DD referred by the reader is a deduction for maintenance and medical treatment of a disabled dependant. It has no application to reader's case.
Sec. 80DDB allows expenses on medical treatment for self or dependant up to an amount of Rs.40,000 or actual expenses whichever is less. The limit is Rs.60,000 for senior citizens. The eligibility is for the amount “actually paid” as reduced by any amount received from the insurer or employer. The diseases covered are listed under Rule 11DD. Rule 11DD lists specified neurological diseases to be supported by a neurologist or urologist with prescribed qualifications recognised by Medical Council of India. Other ailments covered are malignant cancer, AIDS, chronic renal failure or hematological disorders being hemophilia and thalassaemia certified by a specialist. The certificate has to be filed in Form 10-I and has to accompany the return for the claim.
The deduction is limited to what is actually paid or Rs.40,000-60,000 for treatment of these specified ailments only and that too subject to reduction of what is met by the employer or insurer.
If the reader has received from the insurer for such specified diseases more than Rs.60,000, there is no further deduction permissible under Sec. 80DDB. Mercifully any excess amount over and above Rs.60,000 received from the insurer is not taxable in law.