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Section 80DD

Under section 80DD of the income tax act, any resident individual or HUF can claim tax deduction for the medical treatment of an individual dependent on him having disability or severe disability. This deduction amount also includes the premium paid towards the insurance plans specifically designed for disabled dependents.

Section 80DD

Eligibility Criteria for Deduction under Section 80DD

The eligibility criteria for deduction under section 80DD are as follows –

  • Any individual or HUF who is a resident of India can claim this deduction
  • NRI’s are not eligible for deduction under section 80DD of the income tax act, 1961.

Who qualifies as a dependent as per income tax laws?

  1. In case of individual - Spouse, children, parents, brother & sister will be considered as dependents.
  2. In case of HUF, any member of Hindu undivided family (HUF) will be considered as dependent.

What kind of disabilities or severe disabilities covered under Section 80DD?

The following disabilities or severe disabilities are covered under section 80DD of the income tax act, 1961 –

  1. Low vision
  2. Blindness
  3. Leprosy-cured
  4. Hearing impairment
  5. Loco motor disability
  6. Mental illness
  7. Mental retardation
  8. Autism
  9. Cerebral palsy

Who can certify an individual as a disabled person?

The following medical authorities can certify an individual as a disabled person –

  1. A Neurologist with MD in neurology
  2. A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital
  3. A Pediatric Neurologist (in case of children) having an equivalent degree

Deduction Amount under Section 80DD

In order to claim deduction under section 80DD, you need to know that whether the dependent person is suffering from disability or severe disability -

  • Dependent Person with Disability

    • A dependent person will be considered as disabled when the dependent person has at least 40% of any of the specified disabilities.
    • A maximum deduction of Rs.75000 can be claimed byindividual taking care of the medical expenses of the disabled dependent person.
  • Dependent Person with Severe Disability

    • A dependent person will be considered as severely disabled when the dependent person has at least 80% of any of the specified severe disabilities.
    • A maximum deduction of Rs.125000 can be claimed by the individual taking care of the medical expenses of the severely disabled dependent person.
  • Conditions for Claiming Deduction under Section 80DD

    In order to claim the deduction, you need to meet the following conditions mentioned below -

    • The deduction is applicable only for dependent of the taxpayer and not for the taxpayer himself.
    • In case the dependent has already claimed deduction under section 80U for him/her, a taxpayer cannot avail this deduction.
    • In case of disability, an individual’s disability should not be less than 40%.
    • In case of severe disability, an individual’s disability should not be less than 80%.
    • The cost a tax payer can claim under this deduction are as follows –

      • Expenses levied on medical treatment
      • Expenses levied on training and rehabilitation of the disabled dependent individual
      • Premium paid by a tax payer for a specific insurance policy.
    • Documents necessary to Claim Deduction under Section 80DD

      1. Form 10-IA ( if the disabled person is suffering from Autism, Cerebral palsy or multiple disabilities)
      2. Medical certificate
      3. Self-declaration certificate
      4. Receipts of insurance premium paid

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