Chapter VIII - Deductions to be Made in Computing Total Income
Section 128
Section 128: deduction for medical treatment of specified diseases
Section 128 is the Income-tax Act, 2025's version of the deduction long known as "80DDB" - for a resident assessee who actually pays for the medical treatment of certain prescribed diseases or ailments, for themselves or a dependant.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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 under 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.
Introduction
Section 128 covers actual payment for prescribed disease or ailment treatment by a resident individual or HUF. The ordinary ceiling is ₹40,000, replaced by ₹1 lakh where the treated person is a senior citizen, with insurance or employer reimbursement reducing the claim.
Key takeaways
Specified disease treatment
A resident individual or Hindu undivided family can deduct actual payments for treatment of a prescribed disease of a qualifying person, subject to the statutory limit and specialist prescription.
Limits and reimbursements
The ordinary ceiling is ₹40,000 and becomes ₹1,00,000 for a senior citizen; insurance receipts and employer reimbursements reduce the deduction.
What Section 128 allows
A resident assessee can deduct the amount actually paid during the year for medical treatment of a prescribed disease or ailment, capped at ₹40,000 (₹1,00,000 if the person treated is a senior citizen) - whichever is lower than the amount actually spent.
For an individual, this covers treatment for themselves or a dependant (as defined in Section 127). For an HUF, it covers treatment for any member of the family.
Conditions
- A prescription for the treatment must be obtained from a neurologist, oncologist, urologist, haematologist, immunologist, or other specialist as may be prescribed.
- The deduction is reduced by any amount received from an insurer or reimbursed by an employer for the same treatment - you can only deduct the out-of-pocket portion.
- "Dependant" and "insurer" carry the same meanings as under Section 127(9) and the Insurance Act, 1938 respectively.
Net the reimbursements
Compute the lower of actual qualifying spending and the applicable ceiling, then reduce the deduction by insurance proceeds or employer reimbursement for that treatment.
Step-by-step flow for applying Section 128
- 1
Is the assessee a resident individual or HUF, and is the patient eligible?
For an individual: self or a dependant (as defined in Section 127(9)); for a HUF: any member.
- No: No deduction.
- Yes: Go to the next step.
- 2
Is the disease or ailment one prescribed by the rules, with a prescription from a qualifying specialist?
The list of diseases and any additional specialists are left to the rules; the Act names neurologist, oncologist, urologist, haematologist and immunologist.
- No: No deduction.
- Yes: Go to the next step.
- 3
Take the lower of amount actually paid and the ceiling
Ceiling ₹40,000, or ₹1,00,000 where the patient is a senior citizen.
- 4
Reduce by insurance and employer reimbursement
Subtract any amount received from an insurer or reimbursed by an employer for that treatment; the result cannot go below nil.
Practical checklist
Do
- Obtain the prescribed specialist's treatment prescription and retain payment records.
- Identify the patient's age and deduct relevant insurance or employer reimbursement.
Avoid
- Do not claim unrelated illness costs absent the prescribed disease or ailment test.
- Do not claim reimbursed spending as if it were borne by the assessee.
Illustrative example
Worked example: treatment for a senior-citizen parent with partial insurance
Hypothetical facts (illustration only, not a real taxpayer): Mr. Verma, a resident individual, pays ₹1,60,000 for his dependant father's treatment for an ailment covered by the rules, on an oncologist's prescription. His father is a senior citizen. An insurer reimburses ₹80,000.
Ceiling
Because the patient is a senior citizen, the ceiling is ₹1,00,000.
Lower of paid and ceiling
Lower of ₹1,60,000 and ₹1,00,000 = ₹1,00,000.
Reduce by reimbursement
₹1,00,000 − ₹80,000 = ₹20,000.
Outcome
- Deduction under Section 128: ₹20,000.
- If the patient were not a senior citizen, the ceiling would be ₹40,000; after deducting ₹80,000 of reimbursement, nothing would be deductible.
Glossary
- Prescribed ailment
- A disease or ailment covered by the applicable rules for this deduction.
- Reimbursement
- Insurance or employer payment that reduces the allowable deduction.
Frequently asked questions
Is this the deduction people used to call "80DDB"?
Yes - the same underlying deduction for specified-disease medical treatment, now numbered Section 128 under the Income-tax Act, 2025.
What's the maximum deduction?
₹40,000, or ₹1,00,000 if the person receiving treatment is a senior citizen - capped at whatever was actually spent, whichever is lower.
Can I claim this if my insurer already reimbursed part of the cost?
You can only claim the portion you actually paid out of pocket - the deduction is reduced by any amount received from insurance or reimbursed by an employer.
Need help applying this provision to your situation?
Check your Section 128 medical treatment deduction with our tax teamLast updated 10 October 2026