Section 80DD - Deduction for Disabled Dependent
Roshni Bhagtani
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Section 80DD - Deduction for Disabled Dependent
According to Section 80DD of the income tax act of 1961, a taxpayer can claim a deduction for a disabled dependent. A disabled dependent can be an individual's brother or sister, spouse, parents, or children.
Who can claim deduction under section 80DD
Any individual or a member of HUF can claim deduction under this section.
An individual must be a resident of India. NRIs (non-resident Indians) are not eligible for the deduction under Section 80DD.
Conditions to be met before claiming deduction
The individual should be dependent on the taxpayer to some extent.
The taxpayer must bear the dependent’s expenses, which includes either the treatment and training & rehabilitation, or has paid the premium for a specific medical insurance policy designed for such cases.
Dependents include sister, brother, spouse, parents, or children of the taxpayer.
If the dependent has claimed deduction under section 80U, the taxpayer cannot claim deduction under section 80DD.
Quantum of Deduction
Before the financial year 2015-2016, the deduction for those with at least 40% disability was Rs. 50,000 and Rs. 1,00,000 for those with more than 80% disability.
Disabilities Covered Under Section 80DD
The following are the disabilities covered under section 80DD:
Documents need to submit for claiming deduction under section 80DD
The following documents need to be submitted to claim deduction under section 80DD
Self-declaration certificate: Taxpayers are required to produce a self-declaration certificate indicating the amount spent on medical treatment, including nursing, rehabilitation, and training for the disabled dependent.
Form 10-IA: Form 10-IA must be presented in the instance of a disabled dependent who has cerebral palsy, autism, or multiple disabilities.
Medical certificate: Individuals must present a copy of a medical certificate issued by a medical expert to validate the disability.
Insurance premium receipts: It is not required to preserve the actual receipts of insurance premium as for most of the expenses self-declaration certificate will suffice. However, the deduction claimed for the insurance policies, taken for disabled dependents in that case receipts will need to be filed along with other documents.
Medical Certification
Medical professionals who can certify the disabled person:
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