Section 128 Income Tax Act 2025: Deduction for Medical Treatment of Specified Diseases
Section 128 of the Income-tax Act, 2025 allows a qualifying resident individual or Hindu undivided family (HUF) to claim a deduction for amounts actually paid for medical treatment of specified diseases or ailments. It is the current provision corresponding to Section 80DDB of the Income-tax Act, 1961.
What does Section 128 provide?
Section 128 permits a resident assessee to deduct the amount actually paid during the tax year for medical treatment of a prescribed disease or ailment, subject to the statutory ceiling. For an individual, the payment may relate to the taxpayer or a dependant. For an HUF, it may relate to a member of the HUF.
The basic ceiling is Rs. 40,000. If the person receiving the treatment is a senior citizen, the ceiling becomes Rs. 1,00,000. The deduction is not a flat allowance: it is restricted by the amount actually paid and is further reduced by qualifying insurance receipts or employer reimbursement.
Who can claim the deduction?
The deduction is available only to a taxpayer who satisfies the residence and other conditions in Section 128. Broadly, it covers:
- a resident individual paying for eligible treatment for himself or herself or for a dependant; and
- a resident HUF paying for eligible treatment of a member of the HUF.
For this deduction, the dependant concept covers the prescribed family relationship and dependency conditions. Under the corresponding framework, this includes spouse, children, parents, brothers and sisters who are wholly or mainly dependent on the individual for support and maintenance; for an HUF, it concerns a member dependent on the HUF.
How much deduction can be claimed?
| Person receiving treatment | Maximum statutory deduction | Basic calculation |
|---|---|---|
| Person who is not a senior citizen | Rs. 40,000 | Lower of eligible amount actually paid or Rs. 40,000, after applying the reimbursement rule. |
| Senior citizen | Rs. 1,00,000 | Lower of eligible amount actually paid or Rs. 1,00,000, after applying the reimbursement rule. |
A senior citizen for this purpose is a resident individual aged 60 years or more at any time during the relevant tax year.
Tax-regime point: Chapter deduction availability should be checked against the tax regime applicable to the taxpayer. The default/new tax regime restricts many deductions, while the old tax regime preserves a wider set of deductions. Taxpayers should verify the regime selected for the relevant return before claiming this deduction.
Specified diseases and prescribed specialists under Rule 62
Rule 62 of the Income-tax Rules, 2026 identifies the eligible diseases or ailments and the specialist from whom the prescription should ordinarily be obtained.
| Specified disease or ailment | Prescribed specialist |
|---|---|
| Neurological diseases with certified disability of 40% or above, including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia and Parkinsons Disease | Neurologist having a D.M. degree in Neurology. |
| Malignant cancers | Oncologist having a D.M. degree in Oncology. |
| Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) | Specialist having a post-graduate degree in General or Internal Medicine. |
| Chronic renal failure | Nephrologist having a D.M. degree in Nephrology or Urologist having an M.Ch. degree in Urology. |
| Haematological disorders: Haemophilia and Thalassaemia | Specialist having a D.M. degree in Haematology. |
Rule 62 also recognises an equivalent medical degree where recognised by the competent medical regulator. Where the patient is receiving treatment in a government hospital, the rule contains an additional route for prescription by a full-time specialist with the specified post-graduate qualification in General or Internal Medicine or a recognised equivalent degree.
What should the prescription contain?
Rule 62 prescribes a simple information format. The prescription should record the patient and disease details and identify the specialist. The required particulars include:
- name and age of the patient;
- description of the disease or ailment;
- signature, name, qualification, address and registration number of the specialist; and
- name and address of the hospital where applicable when the specialist is working in a government hospital.
Taxpayers should retain the prescription and supporting medical and payment records with their tax documents even where the return form does not require every document to be uploaded with the return.
Effect of insurance or employer reimbursement
The deduction must be reduced by an amount received under insurance or reimbursed by an employer for the medical treatment covered by the provision. This prevents the same medical cost from generating a deduction to the extent that the taxpayer has already recovered that cost.
Examples of the deduction calculation
Section 80DDB of the Income-tax Act, 1961 and Section 128 of the Income-tax Act, 2025
The original page dealt with Section 80DDB of the Income-tax Act, 1961. That Act has been replaced for the current statutory framework by the Income-tax Act, 2025 with effect from 1 April 2026. The corresponding current provision is Section 128, titled Deduction in respect of medical treatment, etc.
Old Section 80DDB remains relevant when examining a year, proceeding, claim or legal issue governed by the Income-tax Act, 1961. For current tax years under the 2025 Act, Section 128 and Rule 62 of the Income-tax Rules, 2026 should be read.
Official references
- Income-tax Act, 2025 and official comparison utilities - Income Tax Department
- Income-tax Rules, 2026 - CBDT Notification G.S.R. 198(E), dated 20 March 2026
- Income Tax Department guidance for individual taxpayers
This article is a general statutory guide. Eligibility depends on the law applicable to the relevant tax year, the taxpayer's residential status, tax regime, medical condition, prescription and reimbursement facts.