(G) Deduction In Respect Of Medical Treatment Of Terminal Ailments, Etc. — Section 80DDB

Deduction is available to a person who is—
1. Resident in India, and
2. Is either an individual or HUF.
Deduction is allowed in respect of any expenditure Actually incurred for the medical treatment of the following persons for such disease or ailment as may be specified in the rules made in this behalf by the Board:

In the case of individual — for himself or a dependant

In the case of HUF — for any member of the HUF

No deduction under section 80DDB shall be allowed unless the assessee obtains the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed.
Quantum of Deduction under Section 80DDB :
1. Amount actually paid or
2. Rs. 40,000
  
  whichever is Less.
(A) However if the person for whom such expenditure is incurred happens to be a Senior Citizen, the maximum deduction shall be allowed for a sum of Rs. 60,000 instead of Rs. 40,000.

In other words, the deduction in this Senior Citizen case shall be ..
1. Actual amount incurred or
2. Rs. 60,000, [ Rs.1,00,000 w.e.f. A.Y. 2019-20]
  
  whichever is Less.
(B) On the other hand, if the person for whom such expenditure is incurred happens to be a Very Senior Citizen, the maximum deduction shall be allowed for a sum of Rs. 80,000 instead of Rs. 40,000 or Rs. 60,000, as the case may be.

In other words, the deduction in this Very Senior Citizen case shall be ..
1. Actual amount incurred or
2. Rs. 80,000,
  
  whichever is Less
Further, if any amount is received under an insurance from the insurer or reimbursed by an employer for the medical treatment of the person mentioned in point (2) above, the amount so received shall be reduced from the deduction allowable under this section.

Amenment made by the Finance Bill, 2018 . W.e.f A.Y. 2019-20

The term "very senior citizen" has been omitted.
The monetary limit of Rs. 60,000 has been raised to Rs. 1,00,000 for a Senior Citizen.

Dependant means—
1. in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,
2. in the case of a Hindu undivided family, a member of the Hindu undivided family,
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance.
Senior Citizen means an individual resident in India who is of the age of 60 years or more at any time during the relevant previous year.
Meaning of Very Senior Citizen: “Very senior citizen” means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year. Hence in the case of an individual who is of the age of 60/80 years or more and is a non-resident in India, the deduction will be limited to Rs. 40,000 as he will not be considered to be a senior citizen/very senior citizen for this purpose.