Tax Benefits Available for Cancer Treatments In India

The cancer journey is often emotionally and financially draining. The expenditure of the treatment usually puts families under long-term economic stress. In these difficult moments, understanding the tax benefits available for cancer care can provide valuable information to patients. This can help patients focus on recovery instead of worrying about costs.

Financial relief provided by section 80DDB

Section 80DDB of the Income Tax allows individuals to claim tax deductions for expenses incurred on treatment in case of critical illness or cancer. The deduction is claimed by the taxpayer or a dependent family member and is limited to the amount spent during a single financial year. Under the scheme, individuals below 60 years of age can claim up to Rs. 40,000, while seniors and super seniors can claim up to Rs. 100,000. Chemotherapy, surgery, radiation therapy, and prescribed medicine are the expenses included, provided a valid medical certificate from a qualified specialist is submitted.

Who is eligible to claim the deduction

Individuals and undivided families are eligible to claim the deduction, provided they have incurred expenses for cancer treatments. This deduction is also applicable to taxpayers, along with patients, paying for the treatment of dependent members like children, spouses, or siblings. On the contrary, deduction can be claimed for any dependent member in the case of HUFs. This ensures meaningful tax relief for the families supporting their loved one during their cancer journey.

Documents required to claim the deduction

To successfully claim the tax benefits, it is essential to maintain proper documentation. Keeping all the records organized ensures a smoother claim process and avoids long waits and unnecessary rejections.
The following are the documents required for the claim process:

• Medical certificate issued by a professional linked to cancer care.
• Hospital and bill receipts related to treatment.
• Prescription and medical bills related to the diagnosis.
• Form 10-1, whenever applicable, to support the deduction claim.
• Proof of payment in the form of a bank statement.

How to claim tax benefits and mistakes to avoid

Claiming tax benefits for cancer treatment can be a straightforward and simpler process when followed carefully. A structured approach is essential to ensure deduction is applied correctly and to reduce the probability of rejections.

How to claim tax benefits:

• Gather necessary documents, including medical certificates, hospital bills, or prescriptions.
• Check your eligibility under section 80DDB.
• Enter your deduction details accurately in the correction section of the income tax return.
• Submit Form 10-1, wherever applicable, with the required documents.

Common mistakes to avoid:

• Beware of the incomplete documentation, as it is more common for claim rejection.
• Ensure the correct tax section is selected.
• File all the necessities within deadlines to avoid eligibility deduction.
• Retain all important records for future verifications.

Taking the financial burden off during cancer care

Cancer treatment is filled with uncertainties and financial strain. Amid all this, understanding and using available tax benefits can ease the stress and help the patients focus solely on their treatment. While taxes cannot eliminate the treatment challenges, they can offer valuable support during tough treatment times.