Income Tax - Deduction for Medical Treatment - Private Doctors' Certificates acceptable
AS per Section 80DDB of the Income Tax Act, a deduction of actual cost of treatment or forty thousand rupees, whichever is less is allowed for treatment of certain diseases as may be prescribed in the rules.And the diseases are:
1. Dementia;
2. Dystonia Musculorum Deformans;
3. Motor Neuron Disease;
4. Ataxia;
5. Chorea;
6. Hemiballismus;
7. Aphasia;
8. Parkinsons Disease;
9. Malignant Cancers;
10. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS);
11. Chronic Renal failure;
12. Hematological disorders.
No deduction was allowed unless the assessee furnished with the return of income, a certificate in such form, as may be prescribed, from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed, working in a Government hospital. The certificate was to be issued by doctors having a Doctorate of Medicine (D.M.) degree working in Government hospitals.
In the Finance Act 2015, this provision was amended to stipulate that no such deduction shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed.
No more certificates, but only prescriptions and that too not necessarily from Government doctors.
Now they have relaxed the rules to prescribe that the prescription in respect of the diseases or ailments shall be issued by doctors having a Doctorate of Medicine (D.M.) degree for certain ailments and having a post-graduate degree in General or Internal Medicine for certain other diseases.
The prescription shall contain the name and age of the patient, name of the disease or ailment along with the name, address, registration number and the qualification of the specialist issuing the prescription.
Maybe it is far better to die of those diseases than trying to claim income tax deduction. Dementia is almost lunacy or memory loss and the Government wants that patient to remember that his doctor has a DM and he has to keep that prescription for god knows how many years.
Instead of all this bureaucratic maze, can't the Government exempt these sick people and all those who are above 75 years of age from Income Tax? Should the Government survive on tax from demented old citizens? How cruel!
CBDT Notification No. 78/2015., Dated: October 12, 2015