Section 80DDB Deduction for AY 2026-27: Medical Expenses for Specified Diseases

What is the Section 80DDB deduction?

Section 80DDB of the Income-tax Act, 1961 allows a deduction for eligible expenses actually paid during the financial year for medical treatment of certain specified diseases. For Assessment Year (AY) 2026-27, the relevant period is Financial Year (FY) 2025-26, from 1 April 2025 to 31 March 2026.

The deduction is available to a resident individual or Hindu Undivided Family (HUF), subject to the conditions below. An individual may claim for themselves or an eligible dependent; a HUF may claim for a qualifying member. It is not a general deduction for all medical bills, hospital stays or chronic conditions. The disease must be listed in the prescribed rules, the required medical prescription must be available, and the deduction is limited to eligible expenses actually paid.

Section 80DDB is generally available only under the old tax regime. It cannot be claimed if you calculate tax under the default new regime under section 115BAC.

How much can you claim?

The maximum deduction depends on whether the person receiving treatment is a senior citizen. The claim is limited to the lower of the eligible expense paid, after relevant reimbursements, and the applicable limit.

The higher limit depends on the patient’s age, not automatically the age of the person claiming the deduction. For this purpose, a senior citizen is a resident individual who is at least 60 years old at any time during FY 2025-26.

For example, if you pay for qualifying treatment for a dependent parent who is 62, the senior-citizen limit may apply even if you are under 60. If you are 65 but the patient is a dependent child under 60, your age alone does not increase the limit.

The limit is not available separately for each disease or invoice. Do not multiply it by the number of medical bills. If treatment relates to more than one eligible person, calculate the claim using the conditions of the section and the applicable overall limit.

Which diseases qualify?

The deduction applies only to diseases and conditions specified under Rule 11DD.

For the listed neurological diseases, the patient must have a disability level of 40% or more, certified as required under the applicable rules. A diagnosis alone should not be assumed to meet this condition.

A serious illness that is not included in Rule 11DD does not qualify under section 80DDB merely because it involves expensive or ongoing treatment. Check the diagnosis against the prescribed list before claiming the deduction.

Who can claim it?

Individual taxpayers

A resident individual may claim eligible expenses for treatment of themselves or a dependent spouse, child, parent, brother or sister. The dependent must meet the requirement of being wholly or mainly dependent on the individual for support and maintenance.

HUF taxpayers

A resident HUF may claim qualifying expenses paid for treatment of a member who is wholly or mainly dependent on the HUF for support and maintenance.

A person does not qualify simply because the taxpayer paid that person’s medical bill. Keep evidence of the relationship and dependency where relevant, particularly if the support arrangement may not be clear from other records.

Reduce the claim by insurance or employer reimbursement

The deduction must be reduced by any amount received from an insurer or reimbursed by an employer for the same treatment. You cannot claim a deduction for expenses that have been reimbursed.

For example, suppose qualifying treatment costs ₹90,000 and an insurer reimburses ₹35,000. The unreimbursed expense is ₹55,000. If the patient is not a senior citizen, the maximum deduction is ₹40,000. If the patient is a senior citizen, the possible deduction is limited to the lower of ₹55,000 and ₹1,00,000, subject to the other conditions.

Keep the insurance settlement and employer reimbursement records with your calculation. If a reimbursement is received after you file the return, review how it affects your earlier claim and retain the supporting documents.

What medical documentation is needed?

Rule 11DD requires a prescription from a specialist appropriate to the disease. It should include the patient’s name and age, the disease, and the specialist’s name, address, registration number and qualification. Keep the prescription and supporting medical records with your tax documents.

For treatment in a government hospital, Rule 11DD allows the prescription to be issued by a full-time specialist there with a postgraduate qualification in General or Internal Medicine, or an equivalent recognised qualification. The prescription must state the hospital’s name and address. In other treatment settings, obtain the prescription from the specialist prescribed for that disease category.

The current rule requires the prescribed medical particulars; do not assume an old form is required. Form 10-I has been omitted from the current rules. If you are unsure whether the specialist’s qualification or prescription meets the requirements, check before claiming the deduction.

Which expenses count?

Section 80DDB concerns amounts actually paid during the previous year for medical treatment of a specified disease. An unpaid bill or treatment estimate is not an expense actually paid.

Keep a calculation showing:

• Qualifying treatment expenses paid during FY 2025-26;
• The portion covered by insurance or reimbursed by an employer;
• The net eligible amount; and
• The deduction limit applicable to the patient.

Retain invoices, receipts, proof of payment and reimbursement statements. If treatment continues across financial years, identify the payments made in each year rather than claiming the entire treatment plan in one return.

Section 80DDB is different from section 80D, which mainly covers health insurance premiums and certain medical expenses for senior citizens. You may be able to claim both deductions if you meet their separate conditions, but do not claim the same expense twice or include reimbursed amounts. See TaxClear’s Section 80D guide for AY 2026-27 for information about that separate deduction.

How does the tax regime affect the claim?

The new tax regime under section 115BAC is the default for AY 2026-27. Section 80DDB is not available under that regime. To claim the deduction, you generally need to choose the old regime and meet the applicable requirements for opting out of the default regime.

For a taxpayer without income from business or profession, the old-regime choice is generally made in the income tax return filed by the due date under section 139(1). Taxpayers with business or professional income have additional regime-election requirements, including Form 10-IEA and applicable deadlines. The rules may also depend on whether an option was exercised in an earlier year.

Do not choose the old regime only because section 80DDB is available. Compare the tax under both regimes using your total income and eligible deductions. If you miss the applicable deadline for choosing the old regime, you may not be able to claim section 80DDB for that year. Filing due dates vary by taxpayer category and may be extended, so check the current date that applies to you.

How to report section 80DDB in your ITR

Report the deduction under section 80DDB in the Chapter VI-A deductions section of the applicable ITR. The AY 2026-27 form or utility may ask for the eligible category or other particulars. Use the form and utility for the relevant assessment year and enter the amount you are entitled to claim, not simply the total on the hospital bills.

The correct ITR form depends on your income and filing circumstances, not just this deduction. Income from business or profession, certain capital gains, or other income may affect which form you can use. TaxClear’s ITR form guide for AY 2026-27 can help with form selection, while its online ITR filing guide explains the filing process.

Before submitting, check that:

• You have selected the old regime if you are claiming section 80DDB;
• The patient and relationship meet the eligibility conditions;
• The disease is listed in Rule 11DD;
• Any special condition, such as the neurological disability threshold, is met;
• The claim does not exceed the applicable limit;
• Insurance and employer reimbursements have been deducted; and
• Your records support the amount entered.

Records to keep

Medical documents are generally not attached to the online ITR. Keep them in case the Income Tax Department asks for supporting evidence. Retain:

• The specialist’s prescription with the required particulars;
• Medical records supporting the diagnosis and treatment;
• Treatment bills, invoices and receipts;
• Bank, card or other proof of payment;
• Insurance policy and claim settlement details;
• Employer reimbursement details, if applicable;
• Proof of the patient’s age and relationship to you; and
• A calculation of the net expense and deduction claimed.

A clear record helps you support the amount in your return and reconcile it with medical bills and reimbursements. Keep the documents for the period relevant under applicable record-retention rules and any pending proceeding.

Common mistakes to avoid

• Claiming section 80DDB under the new tax regime;
• Treating the deduction as available for every serious illness;
• Using the claimant’s age instead of checking the patient’s age for the higher limit;
• Claiming ₹1 lakh when the patient is not a senior citizen;
• Claiming the full bill when insurance or an employer paid part of it;
• Claiming a separate maximum for each disease or invoice;
• Using a prescription that does not identify the disease or the specialist’s qualifications;
• Overlooking the 40% disability condition for a listed neurological disease; and
• Assuming that the ITR filing date automatically allows a late choice of the old regime.

Frequently asked questions

Can I claim section 80DDB if I use the new tax regime?

No. Section 80DDB is generally available under the old regime, subject to its conditions. Compare the regimes and meet the applicable deadline to choose the old regime.

Is the ₹1 lakh limit based on my age?

No. The higher limit depends on the patient’s senior-citizen status. If the patient is another person, your age does not automatically increase the limit.

Are all cancer or kidney treatment bills eligible?

The disease and treatment must meet Rule 11DD and the other eligibility and documentation requirements. Keep the specialist’s prescription and proof of eligible expenses.

Can I claim expenses reimbursed by insurance?

No. The deduction is reduced by any amount received from an insurer or reimbursed by an employer for the treatment.

Do I need to attach the prescription to my ITR?

You generally report the deduction in the ITR and keep the prescription and supporting records. Provide them if requested.