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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.
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