Tuesday, August 20, 2013

IT relaxation for the expense of serious diseases including cancer

IT relaxation for the expense of serious diseases including cancer

Income Tax relaxation on the expenditure of serious diseases, the ‘diseases prescribed under Rule 3A (2) of the Rules include cancer’.

On 13th August 2013, the Minister of Health and Family Welfare has replied to a question above mentioned that "Under the provisions of section 80DDB of the Income-tax Act, 1961 (the ‘Act”), a deduction upto Rs.40,000/-, on account of medical treatment of specified diseases is allowed from the total income of the assessee.

The limit is increased to Rs.60,000/- if the amount is paid on the treatment of a person who is of the age is 60 years or more. The diseases specified in the Rule 11DD of the Income-tax Rules, 1962 (the “Rules”) include malignant cancers and expenditure on its treatment is eligible for deduction under section 80 DDB.

Further, for the salaried class, as per section 17(2) of the Act, any amount paid by the employer in respect of any expenditure incurred by the employee on his medical treatment or treatment of any member of his family in respect of prescribed diseases is not treated as perquisite in the hands of the employee. The diseases prescribed under Rule 3A (2) of the Rules include cancer".

Source: http://centralgovernmentemployeesnews.in/

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