The Income tax act provides some relief to person who incurs medical expenditure on himself or his/her dependent relatives suffering from specific diseases.
Who Can Claim?

How much?
Rs 40,000 in general and in case of patient being a senior citizen Rs 60000.
For what?
This deduction is for specific diseases .These are :
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—

(a) Dementia ;
(b) Dystonia Musculorum Deformans ;
(c) Motor Neuron Disease ;
(d) Ataxia ;
(e) Chorea ;
(f) Hemiballismus ;
(g) Aphasia ;
(h) Parkinsons Disease ;

(ii) Malignant Cancers ;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
(iv) Chronic Renal failure ;
(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

What are the procedure?

1. Keep Evidence of all bills or other evidence of medical expenditure
2. Attach a certificate in Form 10-I from from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist,who are having post graduate degree and working in a Government hospital with the return of income .