According to section 80 DD of Income Tax Act, 1961, if any individual has incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant during the previous year then individual shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of 75000 rupees from his gross total income in respect of the previous year.
As you have incurred expenditure for your parents they are consider as your dependents & you can claim the deduction u/s 80 DD.
Yes, you can get the tax deduction for the medical treatment, nursing, and rehabilitation expense etc. done for the “DEPENDANT” who is a person with a disability u/s 80DD. Here DEPENDANT means in case of an Individual SPOUSE, CHILDREN, PARENTS, BROTHER & SISTER. In your case, you have expended the amount for the Treatment of PARENTS which will be covered under section 80DD and hence you would get the deduction. Further, the Deduction amount would be RS. 1,25,000/- (FLAT AMOUNT i.e. irrespective of the actual amount expended) because your parents’ Disability is 80% which comes under PERSON WITH SEVERE DISABILITY. Further, to substantiate the claim, you have to get the certificate of Disability issued by the Medical authority. Although, such medical certificate need not to be submitted with the return itself but it may be asked later on. THANKS!