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What is Section 80DD, covering Deduction for Medical treatment and Maintenance of Handicapped dependent relatives?
Section 80DD of the Income Tax Act allows deductions for expenses incurred on the medical treatment, rehabilitation, and maintenance of a dependent with a disability.
Who is eligible to claim Deduction under Section 80DD related to treatment Of Handicapped ?
The deduction is available to Resident Individuals and Hindu Undivided Families (HUFs).
What are the Requirements to Qualify for the Section 80DD Deduction related to treatment Of Handicapped ?
Here are the requirements you must fulfill to claim this deduction:
1. The deduction is applicable for a dependent of the taxpayer, not the taxpayer themselves.
2. Only resident individuals of India are eligible to claim the deduction.
3. The deduction cannot be claimed if the dependent has already availed of a deduction under Section 80U.
4. A dependent, in the case of an individual taxpayer, refers to the taxpayer's spouse, children, parents, siblings, or any family member. For a Hindu Undivided Family (HUF), a dependent is any member of the HUF.
5. The taxpayer must have incurred expenses for medical treatment (including nursing), training, and rehabilitation of the differently-abled dependent, or made contributions to an insurance scheme (such as LIC) for their maintenance.
6. The dependent?s disability must be at least 40%.
7. Disability is defined according to Section 2(i) of the Persons with Disabilities Act, 1995.
What is the highest deduction amount permitted under Section 80DD related to treatment Of Handicapped ?
Under Section 80DD, fixed deduction amounts are allowed, regardless of the actual expenses incurred. The deduction varies based on the severity of the disability:
1. For a disability between 40% and 80%, the deduction is Rs 75,000.
2. For a disability of 80% or more, the deduction is Rs 1,25,000.
What are the Disabilities Covered under Section 80DD related to treatment Of Handicapped ?
Section 80DD of the Income Tax Act, 1961 covers the following types of disabilities:
1. Mental illness
2. Hearing impairment
3. Mental retardation
4. Cerebral palsy
5. Leprosy-cured
6. Autism
7. Locomotor disability
8. Blindness
9. Low vision
What are the Essential Documents Required to Claim Tax Deduction Under Section 80DD related to treatment Of Handicapped ?
To claim tax benefits under Section 80DD of the Income Tax Act, 1961, the following documents are required:
1. Medical Certificate: A copy of the medical certificate must be provided to confirm the disability of the dependent.
2. Form 10-IA: If the dependent has autism, cerebral palsy, or multiple disabilities, Form 10-IA must be submitted.
3. Self-Declaration Certificate: The taxpayer needs to submit a certificate declaring the expenses incurred for the medical treatment, including nursing, rehabilitation, and training of the disabled dependent.
4. Receipts for Insurance Premium Paid: While a self-declaration is usually sufficient for most expenses, if insurance premiums for the disabled dependent are claimed, the actual receipts must be maintained as proof.
Who is Authorized to Issue the Medical Certificate for a Dependent with a Disability for under Section 80DD?
The following medical authorities are authorized to certify a person as disabled:
A Civil Surgeon or Chief Medical Officer (CMO) from a government hospital.
A Neurologist with a Doctor of Medicine (MD) degree in Neurology. For children, a Pediatric Neurologist with an equivalent degree.
What happens if the Disabled person died under Section 80DD?
If a dependent passes away then under section 80DD of the Income Tax Act, you receive any insurance policy proceeds, those funds are subject to income tax according to the applicable tax brackets.
What are point to remember for Section 80DD related to treatment Of Handicapped
The deduction under Section 80DD can be claimed in addition to other tax deductions available under different sections of the Income Tax Act. However, Section 80U and Section 80DD cannot be claimed simultaneously for the same disabled person.
What is Section 80U, Deduction for Handicapped Assessee?
Section 80U of the Income Tax Act, 1961, provides a tax deduction to individuals with a disability. It allows a deduction of up to Rs. 1,25,000 for taxpayers with specified disabilities, subject to certain conditions and certification from a medical authority.
Note: This deduction is applicable only if you choose to follow the old tax regime.
Who is eligible to claim Deduction under Section 80U for Handicapped Assessee?
Resident Individual is eligible to claim Deduction under Section 80U for Handicapped Assessee: An individual who is a resident and has been officially recognized as having a disability by the medical authorities is eligible to avail the tax deduction under Section 80U. According to this section, a person is considered to have a disability if they have a minimum of 40% disability, as certified by the relevant medical authorities.
What is Disability and Severe Disability under Section 80U?
Under Section 80U, disability is categorized into the following conditions:
1. Blindness
2. Low vision
3. Leprosy-cured
4. Hearing impairment
5. Locomotor disability
6. Mental retardation
7. Mental illness
8. Additionally, the section defines severe disability as a condition where the disability is 80% or more. Severe disability also encompasses multiple disabilities, autism, and cerebral palsy.
What is the Amount of Deduction for Handicapped Available Under Section 80U?
Following is the amount of deduction for Handicapped available under Section 80U for Normal & Severe Disability:
1. Normal Disability: Rs. 75,000
2. Severe Disability: Rs. 1,25,000
What is the Criteria for Availing Deductions Under Section 80U related to Handicapped Assessee?
To claim the deduction under Section 80U, the only required documentation is a certificate of disability from a recognized medical authority, in Form 10-IA. There is no need to provide bills for treatment costs or any other related expenses.
When making a claim under this section, the individual must submit the medical certificate verifying the disability along with their income tax returns filed under Section 139 for the relevant assessment year (AY). If the disability certificate has expired, the deduction can still be claimed for the year in which the certificate expires. However, a new certificate will be required in the subsequent year to continue claiming the benefits under Section 80U.
The required certificate can be obtained from a medical authority, which includes a neurologist with a Doctor of Medicine (MD) in Neurology, a pediatric neurologist (for children), or a civil surgeon or Chief Medical Officer at a government hospital.
Note: If the disability is temporary and needs reassessment after a specific period, the validity of the certificate begins from the assessment year corresponding to the financial year in which it was issued and ends in the assessment year corresponding to the financial year when the certificate expires.
Which Medical Authorities Are Authorized to Issue Certificates Under Section 80U for Handicapped Assessee?
The following medical authorities are authorized to issue a disability certificate under Section 80U:
A neurologist with an MD (Doctor of Medicine) in Neurology
A civil surgeon in a government hospital
A Chief Medical Officer in a government hospital
A pediatric neurologist with an MD (Doctor of Medicine) in Neurology, specifically for disabled children.
What is the Difference between Section 80U for Handicapped Assessee and 80DD for treatment of family member disability?
Section 80U and Section 80DD both provide tax benefits for individuals with disabilities, but they have key differences:
Eligibility:
1. Section 80U: Available to individuals who are resident and certified as having a disability by medical authorities.
2. Section 80DD: Available to residents who incur expenses for the treatment, training, or rehabilitation of a dependent family member with a disability.
Type of Benefit:
1. Section 80U: Provides a direct deduction to the individual with a disability.
2. Section 80DD: Provides a deduction for the care and support of a dependent family member with a disability.
Amount of Deduction:
1. Section 80U: Offers a fixed deduction of ?75,000 for individuals with a disability, and ?1,25,000 for those with a severe disability (80% or more).
2. Section 80DD: Provides a deduction of ?75,000 for a dependent with a disability, and ?1,25,000 for a severe disability (80% or more).
Documentation:
1. Section 80U: Requires the individual to provide a disability certificate from a recognized medical authority.
2. Section 80DD: Requires proof of expenses incurred for the treatment or rehabilitation of the disabled dependent, along with a certificate of disability for the dependent.
In summary, Section 80U is for individuals with disabilities, while Section 80DD is for those supporting dependents with disabilities.
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