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Information verified as of: 14 August 2026
Taxpayers who incur expenditure on the medical treatment of certain specified diseases or ailments may be eligible to claim a deduction from their total income.
Under the Income-tax Act, 2025, this deduction is provided under Section 128 – Deduction in respect of medical treatment, etc. Section 128 broadly corresponds to Section 80DDB of the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026.
Which provision applies?
| Period | Applicable provision |
|---|---|
| FY 2025-26 / AY 2026-27 | Section 80DDB of the Income-tax Act, 1961 read with Rule 11DD of the Income-tax Rules, 1962 |
| Tax Year beginning 1 April 2026 onwards | Section 128 of the Income-tax Act, 2025 read with Rule 62 of the Income-tax Rules, 2026 |
Accordingly, taxpayers filing a return for FY 2025-26 / AY 2026-27 should continue to apply Section 80DDB of the Income-tax Act, 1961. Section 128 becomes relevant for tax years beginning on or after 1 April 2026.
Who can claim deduction under Section 128?
The deduction is available to an assessee who is resident in India and is:
- An Individual
- A Hindu Undivided Family (HUF)
In the case of an individual, eligible medical expenditure may be incurred for:
- Self
- Spouse
- Children
- Parents
- Brothers
- Sisters
The relative should be wholly or mainly dependent on the individual for support and maintenance.
In the case of an HUF, the medical expenditure should relate to a member of the HUF who is wholly or mainly dependent on the HUF.
How much deduction can be claimed?
- Up to ₹40,000 where the person undergoing treatment is below 60 years of age.
- Up to ₹1,00,000 where the person undergoing treatment is a senior citizen.
The deduction is restricted to the amount actually paid or the applicable maximum limit, whichever is lower.
For this purpose, a senior citizen means an individual resident in India who is 60 years of age or more at any time during the relevant tax year.
Important: If any amount is received from an insurer or reimbursed by an employer towards the medical treatment, the deduction available must be reduced by such amount.
Specified diseases and prescribed specialists
Rule 62 of the Income-tax Rules, 2026 specifies the diseases and ailments that qualify for the deduction and the specialist from whom the required prescription should be obtained.
| Specified disease or ailment | Prescribed specialist |
|---|---|
|
Neurological diseases where the disability has been certified at 40% or more:
|
Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or an equivalent recognised degree |
| Malignant cancers | Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or an equivalent recognised degree |
| Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | Specialist having a post-graduate degree in General or Internal Medicine, or an equivalent recognised degree |
| Chronic renal failure | Nephrologist having a D.M. degree in Nephrology or a Urologist having an M.Ch. degree in Urology, or an equivalent recognised degree |
|
Haematological disorders:
|
Specialist having a D.M. degree in Haematology or an equivalent recognised degree |
Special provision for treatment in a Government hospital
Where the patient is receiving treatment for a prescribed disease or ailment in a Government hospital, the prescription may also be issued by a full-time specialist having a post-graduate degree in General or Internal Medicine, or an equivalent recognised degree, subject to the prescribed conditions.
Therefore, merely obtaining a certificate from any medical practitioner is not sufficient. The prescription should be obtained from the specialist prescribed for the relevant disease or ailment.
Is this deduction available under the new tax regime?
No. The deduction under Section 128 is generally not available while computing total income under the default new tax regime under Section 202 of the Income-tax Act, 2025.
Therefore, a taxpayer who wishes to claim this deduction would generally need to be taxable under the regular provisions after validly opting out of the new tax regime, wherever such an option is available.
Section 80DDB vs Section 128
| Particular | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Relevant section | Section 80DDB | Section 128 |
| Relevant rule | Rule 11DD | Rule 62 |
| Eligible taxpayers | Resident Individual or HUF | Resident Individual or HUF |
| Normal maximum deduction | ₹40,000 | ₹40,000 |
| Senior citizen maximum deduction | ₹1,00,000 | ₹1,00,000 |
| Senior citizen age | 60 years or more | 60 years or more |
| Insurance/employer reimbursement | Deduction reduced accordingly | Deduction reduced accordingly |
Example
Suppose a resident taxpayer spends ₹1,20,000 on the treatment of a specified disease for his dependent father, aged 68 years.
Since the father is a senior citizen, the maximum eligible deduction is ₹1,00,000.
If the taxpayer receives an insurance reimbursement of ₹30,000, the eligible deduction would be:
₹1,00,000 − ₹30,000 = ₹70,000
The deduction would, however, be available only if all other prescribed conditions are satisfied and the taxpayer is eligible to claim the deduction under the applicable tax regime.
Key points to remember
- The deduction is available only to resident Individuals and HUFs.
- The disease or ailment must be one of the prescribed diseases.
- A prescription from the appropriate prescribed specialist is required.
- The normal maximum deduction is ₹40,000.
- The maximum deduction for treatment of a senior citizen is ₹1,00,000.
- Insurance or employer reimbursements reduce the eligible deduction.
- The deduction is not generally available under the default new tax regime.
- For FY 2025-26 / AY 2026-27, Section 80DDB of the Income-tax Act, 1961 continues to apply.
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