ITR Filing 2024: Taxpayers can claim an income tax deduction of Rs 40,000 in a financial year under Section 80DDB if they spend on the treatment of a dependent who has a serious illness like neurological disease, cancer, dementia, Parkinson’s, AIDS etc.
New Delhi. The last date for filing Income Tax Return (ITR) for the financial year 2024 is 31 July 2024. Salaried people and taxpayers are looking for ways to claim deductions in income tax. Apart from the limit of Rs 1.5 lakh under Section 80C, taxpayers can claim additional tax benefits using several other methods.
There are many sections and provisions in the Income Tax rules that can help taxpayers save their money. One such provision is given under Section 80DDB. Using this, people filing income tax returns can get income tax exemption on the money spent for the treatment of any serious illness of themselves or dependents.
ITR Filing 2024: You can save Rs 40,000
Taxpayers can claim an income tax deduction of Rs 40,000 in a financial year under Section 80DDB if they spend on the treatment of themselves or a dependent. This benefit is available for the treatment of critical illnesses such as neurological diseases, cancer, chronic renal failure, dementia, motor neuron disease, Parkinson’s disease and AIDS.
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This special benefit is given only to Indian citizens residing in India. A person can claim it if he has spent money on the treatment of his dependents spouse, children, parents and siblings. The deduction limit is Rs 40,000. In case of senior citizens, it is Rs 1 lakh.
This income tax deduction is applicable even if you have taken a health insurance policy and the money for the treatment is received from the insurance company. The amount of deduction is reduced by the amount received from the insurer or the amount paid by the employer for the treatment of the person.
For example, if a person spent Rs 80,000 on the treatment of a critical illness, he received Rs 30,000 from the insurance company. Under this section, he can claim a deduction of only Rs 10,000. Because the exemption limit in a financial year is Rs 40,000.
