80DDB Deduction Explained: How to Claim Tax Relief on Medical Expenses FY 2025-26

Healthcare costs in India have risen significantly, and for families dealing with critical or long-term illnesses, the financial burden can be overwhelming. To provide relief, the Income Tax Act, 1961 allows taxpayers to claim a deduction under Section 80DDB for medical treatment of specified diseases.

This guide explains the eligibility rules, deduction limits, covered diseases, and documentation required to claim the 80DDB deduction in FY 2025-26. All details are based on current provisions of the Income Tax Act and are subject to amendments.

80DDB Deduction Eligibility Criteria

The 80DDB deduction is available to:

• Resident individuals or Hindu Undivided Families (HUFs) in India.
• The expenditure must be incurred for medical treatment of the taxpayer or their dependents.

Dependents include:

• In the case of an individual: spouse, children, parents, and siblings who are wholly or mainly dependent.
• In the case of an HUF: any member of the HUF.

Important Notes

• Deduction is available only if the medical expenses are actually incurred.
• If the taxpayer has received reimbursement (e.g., from an employer or insurance), the deduction is reduced to that extent.
• For situations involving dependents with disabilities, you may also want to check out our detailed guide on Tax Benefits for Disabled Dependents.

In short, Section 80DDB aims to ensure that taxpayers who are genuinely incurring high healthcare expenses for specified diseases receive some relief through a deduction for medical expenses in income tax.

For situations involving dependents with disabilities, you may also want to check out our detailed guide on Tax Benefits for Disabled Dependents.

Medical Conditions Covered under 80DDB Deduction

The diseases eligible under Section 80DDB are specified by Rule 11DD of the Income Tax Rules. This disease list includes only critical, life-threatening, or chronic medical conditions that require long-term treatment and specialized care. The government has intentionally restricted the scope to ensure that the deduction is directed toward those with the highest medical burden.

Explanation of the Disease Categories

• Neurological Diseases: These conditions severely affect brain and nervous system functioning. Tax relief is allowed if disability levels are certified as at least 40%.
• Cancers: Includes malignant cancers, which often require expensive chemotherapy, radiotherapy, or surgery.
• AIDS: Covers full-blown AIDS where treatment is prolonged and costly.
• Kidney Diseases: Chronic renal failure usually requires dialysis or kidney transplant, both of which are financially draining.
• Hematological Disorders: Hemophilia and Thalassemia are lifelong blood disorders requiring recurring treatments.

Note: Only illnesses included in the official disease list are eligible. Common medical conditions like diabetes, hypertension, or general hospitalizations are not covered under 80DDB deduction.

This shows how Section 80DDB specifically addresses the deduction for medical expenses in income tax for critical and long-term illnesses.

80 DDB Deduction Limits in FY 2025-26

The deduction amount under Section 80DDB is capped, depending on the age of the patient receiving treatment and chosen tax regime.

Detailed Notes on 80DDB Deduction Limit

• The 80 DDB deduction limit is either the actual amount spent or the maximum allowed, whichever is lower.
• Example: Example: If the patient is a 55-year-old (e.g., the taxpayer or their dependent) and spends ₹60,000 on cancer treatment with no reimbursement, only ₹40,000 can be claimed. If the patient is a senior citizen (age 65 or above), up to ₹1,00,000 can be claimed, regardless of the taxpayer’s age.
• If the same treatment was for a senior citizen (age 65), up to ₹1,00,000 can be claimed.
• If reimbursement is received, say ₹20,000 from insurance, the claimable deduction is reduced accordingly.

Thus, taxpayers must carefully assess whether the old regime offers greater benefit, especially when large healthcare expenses are involved. The new regime disallows this deduction entirely.

For a broader understanding of deductions on medical expenses beyond critical illnesses, you can also refer to our guide on Section 80D: Income Tax Deduction for Health Insurance Premiums.

Required Documentation to Claim for 80DDB Deduction

To claim 80DDB deduction, the taxpayer must obtain:

1. Certificate of Diagnosis from a qualified specialist with the required degree (recognized by the Medical Council of India), who may work in a private or government hospital.
   • Neurological diseases: Neurologist with a Doctor of Medicine (DM) degree.
   • Cancer: Oncologist with DM degree.
   • AIDS: Specialist with postgraduate degree in general or internal medicine.
   • Kidney failure: Nephrologist with DM degree or a urologist with M.Ch degree.
   • Hematological disorders: Specialist with DM in hematology.
   If the treatment is in a government hospital, the certificate can alternatively be issued by any full-time specialist there with a postgraduate degree in general or internal medicine.
2. The certificate must include:
   • Name and age of the patient.
   • Name of the disease/ailment.
   • Name, address, registration number, and qualification of the specialist issuing the certificate.
   If applicable, the name and address of the hospital (required only if treatment is in a government hospital and using the alternative specialist option). This documentation is mandatory for the claim of 80DDB deduction.

Old vs. New Tax Regime: Key Difference for the Section 80DDB Deduction

• Old Regime: Section 80DDB deduction is available (₹40,000 / ₹1,00,000 depending on age).
• New Regime: Section 80DDB deduction is not available.

This means that if you want to claim the 80DDB deduction, you will need to opt for the old regime while filing your ITR.

Comparison: Section 80DDB vs Section 80D vs Section 80DD

The Income Tax Act has multiple provisions related to medical expenses and healthcare. While they sound similar, Section 80D, Section 80DD, and Section 80DDB serve different purposes.

Quick Pointers to Differentiate

• 80D = Insurance premium deduction.
• 80DD = Relief for dependent family members with disability.
• 80DDB = Deduction for treatment of a specified disease.

Example Scenarios

• If you pay for your parents’ health insurance, you claim under 80D.
• If you support a dependent with a permanent disability, you claim under 80DD.
• If you spend on cancer treatment for a dependent, you claim under 80DDB.

This structured view helps taxpayers avoid confusion and ensures they maximize their available deductions without overlap.

How to Claim the 80DDB Deduction in ITR

Follow these steps to claim the deduction under Section 80DDB:

1. Obtain the medical certificate from a recognized specialist in a government hospital.
2. Calculate the eligible amount: Actual expenditure or maximum deduction allowed (₹40,000 / ₹1,00,000), whichever is lower.
3. Adjust for reimbursements: Deduct any reimbursements from employer or insurance.
4. Fill in ITR Schedule 80DDB: Enter the details under Section 80DDB in the appropriate field of the ITR form.
5. File before due date: Submit the return before the prescribed deadline to avoid penalties.

Checklist Before Filing

• Confirm that the illness is listed under Rule 11DD.
• Obtain the certificate of diagnosis in the correct format.
• Check whether reimbursement applies.
• Decide between old and new regime carefully.
• Attach supporting documents (retain for assessment if required).

Section 80DDB provides critical tax relief to taxpayers incurring medical expenses for specified diseases. The deduction limits are capped at ₹40,000 for patients below 60 years and ₹1,00,000 for patients aged 60 years and above, easing some of the financial burden associated with treatment.

If you are planning to claim this benefit in FY 2025-26, ensure you have the proper documentation and evaluate whether the old tax regime is more beneficial for your overall tax planning.

Disclaimer: Tax benefits are subject to provisions of the Income Tax Act, 1961, and amendments made from time to time. Consult a tax advisor for personalized guidance.

Try PNB MetLife’s Income Tax Calculator

Simulate your tax liability easily using PNB MetLife’s free Income Tax Calculator.

• Estimate your tax liability quickly
• Compare old vs new income tax slabs
• Strategize deductions effectively

This tool helps ensure you maximize savings and file with confidence.

Plan Ahead: Secure Your Health and Finances

Section 80DDB provides valuable tax relief for those incurring medical expenses for critical illnesses. But true financial wellness goes beyond tax deductions — it’s about ensuring your family’s health, security, and peace of mind, no matter what life brings.

At PNB MetLife, we understand the importance of protecting your loved ones from both health and financial uncertainties. Along with providing life and health insurance plans that safeguard your future, we also help you plan smarter for taxes.

👉 Explore our Life Insurance Plans to complement your tax-saving strategy while ensuring comprehensive protection.

Take charge of your finances today — because every step toward better planning means greater security for tomorrow. Consult a MetLife tax advisor to check your eligibility for medical tax deductions today!