A resident Individual/ HUF can claim an income tax deduction u/s 80DD for any expenses incurred on the treatment of dependent family members. A family member includes children, spouse, parents, siblings.
Who is Eligible to Claim Deduction Under Section 80DD?
An individual/ HUF are eligible. Provided a taxpayer has incurred expenditure on a dependant family member. And a member is suffering from any of the following disabilities:
- Cerebral palsy
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
What are the Conditions to Claim Section 80DD Deduction?
- This deduction can be claimed in two conditions:
- When the person has incurred any expenses for medical treatment, nursing, rehabilitation, or training of the differently-abled dependant
- When the person has paid or deposited any amount under a scheme framed by LIC or any other insurer on behalf of a dependant
- A copy of the certificate issued by medical authorities certifying the ‘person with a disability’ has to be submitted along with income tax return
What is the deduction limit?
Below deduction limits are applicable irrespective of the amount of expenditure incurred during the year. There are two categories for a person with a disability under section 80DD:
- Disabled Person: An individual suffering from at least 40% of disability.
- Severely Disabled Person: An individual suffering from at least 80% of disability.
|Disabled Person(40% or more of the disability)||Rs. 75,000|
|Severely Disabled Person(80% or more of the disability)||Rs. 1,25,000|
ITR Form Applicable for Section 80DD
The taxpayer can claim deductions u/s 80DD while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80DD in any of the ITR forms, i.e, ITR 1, ITR 2, ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.
- Medical Certificate
- Form 10-IA
- Self-Declaration Certificate
- Receipts of Insurance Premium
Income Tax Rule 11A prescribed the certificate format for deduction u/s 80DD. You can download it from the Income Tax Department.
The deduction amount is fixed at INR 75,000 for a disabled dependent and @ Rs. 1,25,000 for a severely disabled dependant. This amount is fixed irrespective of the amount you spend on the treatment of disabled dependants.
No. An NRI can not claim the deduction, this deduction is only available to resident taxpayers.