Section 128 — Medical Treatment Specified Disease | ITA 2025

Section 128 — MEDICAL TREATMENT OF SPECIFIED DISEASES (1961 s. 80DDB SUCCESSOR)

Section 128 is the substantive equivalent of 1961 s. 80DDB. Resident individual / HUF allowed deduction for medical treatment of specified diseases (cancer, AIDS, neurological diseases, chronic renal failure, hematological disorders, etc.) for self / dependant. Limit: ₹ 40,000 per FY; ₹ 1,00,000 per FY if patient is SENIOR CITIZEN (60+). Reduced by amount received from insurance / employer-reimbursement. Form 10-I or specialist's prescription required. Available ONLY in OLD regime.

Statutory text — Income-tax Act, 2025

Marginal note — Deduction in respect of medical treatment, etc.

(1) An assessee who is resident in India, shall be allowed a deduction of the amount actually paid during the tax year or a sum of ` 40000, whichever is less, from income chargeable to tax of that tax year, for the medical treatment of such disease or ailment as may be prescribed—

(a) for himself or a dependant, in case the assessee is an individual; or

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family.

(2) A deduction shall be allowed under this section only if the assessee obtains the prescription for the medical treatment from a neurologist, oncologist, urologist, haematologist, immunologist, or any other specialist, as may be prescribed.

(3) The deduction under this section shall be reduced by any amount received un- der an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person as referred to in sub-section (1)(a) or (b).

(4) If the amount actually paid is in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is senior citizen, the amount of deduction as referred to in sub-section (1) shall be substituted with “` 100000” for “` 40000”.

(5) For the purposes of this section,—

(a) “dependant” shall have the meaning as assigned to it in section 127(9);

(b) “insurer” shall have the meaning assigned to it in section 2(9) of the Insurance Act, 1938 (4 of 1938).

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 — s. 128	INCOME-TAX ACT, 1961 — s. 80DDB
₹ 40,000 standard / ₹ 1,00,000 senior-citizen	1961 s. 80DDB — same since FA 2018
Specified diseases per Rule 11DD	1961 Rule 11DD
Net of insurance reimbursement / employer reimbursement	1961 s. 80DDB(2) proviso
Specialist prescription / Form 10-I	1961 Rule 11DD

SPECIFIED DISEASES (Rule 11DD equivalent under Income-tax Rules, 2026)

(i) Neurological diseases: dementia, dystonia musculorum deformans, motor neuron disease, ataxia, chorea, hemiballismus, aphasia, parkinson's disease (with disability ≥ 40%); (ii) Malignant cancer; (iii) Full-blown AIDS; (iv) Chronic renal failure; (v) Hematological disorders: hemophilia, thalassemia. Specialist prescription required from: oncologist (cancer), nephrologist (renal), neurologist (neurological), hematologist (blood), or specialist with relevant DM/MD qualification.

PLANNING NOTES

(i) Deduction is NET of insurance / employer reimbursement — track all reimbursement entries before computing net deductible. (ii) Senior-citizen ₹ 1 lakh limit (post FA 2018) — significant for senior parents with serious illness; coordinate with s. 126 medical-expenditure deduction. (iii) Form 10-I or specialist prescription mandatory — maintain copies in tax file. (iv) Multi-year treatment: each year's expenditure separately deductible up to limit; cumulative is per FY, not per disease.

CROSS-REFERENCES

Section 126 — Health insurance + senior-citizen medical expenditure.
Section 127 — Disabled-dependant maintenance.
Income-tax Rules, 2026 — Rule equivalent of 11DD (specified disease list).

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