Section 128 of the Income Tax Act, 2025 provides a deduction for medical treatment of specified diseases or ailments. The deduction is available to resident individuals for themselves or their dependants, and to Hindu undivided families for any member of the family. Rule 62 of the Income Tax Rules, 2026 specifies the specialist qualifications required for issuing prescriptions for different diseases. Understanding these requirements is essential for claiming the deduction.
The Statutory Framework
Section 128: Deduction for Medical Treatment
Section 128 allows a resident assessee a deduction of the amount actually paid during the tax year or Rs. 40,000, whichever is less, for the medical treatment of prescribed diseases or ailments. Where the assessee or dependant or member is a senior citizen, the deduction is increased to Rs. 100,000.
Rule 62: Prescription Requirements
Rule 62 specifies that for claiming deduction under Section 128, the prescription for medical treatment must be obtained from specified specialists for the respective diseases or ailments.
Specialist Qualifications by Disease
Neurological Diseases
Eligible Diseases:
- Dementia
- Dystonia Musculorum Deformans
- Motor Neuron Disease
- Ataxia
- Chorea
- Hemiballismus
- Aphasia
- Parkinsons Disease
Qualified Specialist: A Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology
Disability Level Required: Disability level must be certified to be of 40% and above
Malignant Cancers
Eligible Disease: All malignant cancers
Qualified Specialist: An Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology
Full Blown Acquired Immuno Deficiency Syndrome (AIDS)
Eligible Disease: Full Blown AIDS
Qualified Specialist: Any specialist having a postgraduate degree in General or Internal Medicine
Chronic Renal Failure
Eligible Disease: Chronic renal failure
Qualified Specialist: A Nephrologist having a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology
Hematological Disorders
Eligible Diseases:
- Hemophilia
- Thalassaemia
Qualified Specialist: A specialist having a Doctorate of Medicine (D.M.) degree in Hematology
Equivalent Qualifications
The prescription for eligible diseases may also be issued by a specialist holding a degree equivalent to the specified degree, if such equivalent degree is recognised by the Medical Council of India.
Government Hospital Treatment
In cases where a patient is receiving treatment at a Government hospital for specified diseases or ailments, the prescription may be issued by a full-time specialist with a postgraduate degree in General or Internal Medicine, or any equivalent degree recognised by the Medical Council of India.
Prescription Format
The prescription must be issued in the following format:
Name of the patient Age of the patient Description of Disease/Ailment
Certified by: Signature of Specialist Name: Qualification: Address: Registration Number: Name and address of the hospital, if the specialist is working in a government hospital
Practical Compliance Requirements
For Claiming Deduction
Valid Prescription: The prescription must be issued by the qualified specialist for the specific disease.
Timely Issue: The prescription must be issued during the tax year for which the deduction is claimed.
Proper Format: The prescription must be in the prescribed format.
For Reimbursement
Reduction for Insurance: The deduction shall be reduced by any amount received under an insurance policy or reimbursed by an employer.
No Double Deduction: No deduction is allowed for amounts already claimed under any other provision.
Common Pitfalls and Compliance Issues
Incorrect Specialist: Prescription issued by a specialist who is not qualified for that disease.
Incorrect Diagnosis: Prescription for a disease not covered under Section 128.
Expired Prescription: Prescription issued in a different tax year.
Incorrect Format: Prescription not in the prescribed format.
No Disability Certification: For neurological diseases, the disability level must be certified at 40% or above.
Expert Legal Guidance
Understanding the medical prescription requirements for Section 128 deduction is essential for taxpayers claiming this deduction. Anuj Desai & Associates provides expert advisory services on Direct Tax Code compliance, helping taxpayers obtain proper prescriptions and ensure compliance with all requirements.