Introduction
Section 80DD is designed especially for those people who are facing personal challenges in their life. For providing with the required support in order to continue their Treatment and quest to survive like others. Section 80DD is said to offer that support by providing a flat deduction and not taking into consideration the expenditure incurred for the dependent disabled person.
Considering the large expenses, it sometimes becomes troublesome or burdensome for a few families out there. For them, section 80DD deduction comes across as a savior for people with disabilities. Let’s dive into the section to get a better understanding of this topic.
What does Section 80 D.D. of Income Tax Stand for?
This section 80DD is the deduction that is given to any individual or HUF for the medical Treatment they are availing in order to take care of their dependent disabled family member. The conditions set for availing the benefits under this section 80DD are:
- Remember, when it comes to section 80DD, only the dependants are allowed to enjoy the benefits. However, the taxpayer himself is not allowed to enjoy the benefits that come through section 80DD.
- The dependants could be parents, brothers, sisters, spouses and children of the individual who is considered the taxpayer. All of the HUF members are taken into consideration under this section.
- Medical expenses incurred on training, rehabilitation, and nursing for disabled dependants.
- Keep in mind that disabled persons shouldn’t be under 40%, or else they wouldn’t be given deductions under this law.
Although each point that is mentioned above is important, if the disabled individual is already claiming deductions under section 80U, they wouldn’t be allowed to get the benefits under section 80DD deduction.
Check out the Eligibility Criteria for Section 80DD
- Residential individuals and all members of a HUF are given deductions under section 80DD for the dependant disabled. However, the NRIs in question are not given any deduction under this section.
- Considering the eligibility of dependants, they need to be spouses, children, parents, brothers, and sisters. But all members of the HUF are also dependents of disabled persons. Nonetheless, the dependency could depend upon the extent of disability for the person to ask for support.
- However, the taxpayers aren’t given any claims under this section for the medical expenditure they have incurred on themselves.
- The assesses who is looking to claim the deduction under section 80DD must carry a copy of the disability certificate that is given by the medical authority in Form 10IA.
Learn about the diseases that are covered under section 80DD
-
Autism
One of the first diseases that are given importance under sec 80DD is autism, which is a neurological behavioral condition. It is impairment during social interaction that disrupts the ability of an individual to communicate properly while showing rigid and repetitive behaviors.
-
Blindness
This is visual impairment, where the person isn’t able to see anything compared to a healthy person. Their field of vision could be subtending an angle of 20 degrees or worse, given attention under section 80DD of the Income Tax Act.
-
Hearing impairment
Loss of up to sixty decibels or more in your two ears would be considered a hearing impairment. This would mean the individual isn’t able to hear and properly respond to any normal conversation that is occurring in front of them.
-
Locomotor disability
Locomotor disability refers to the disabilities that are present in our bones, joints, or muscles throughout our body. Those bones or muscles could be restricting the movement of our limbs, thereby causing them to feel disabled.
-
Mental illness
People who are suffering from mental disorders are subjected to attain the benefits under mental illness through section 80DD.
-
Mental retardation
Mental retardation is slightly different from mental illness, where the individual is facing issues with complete mind blockage. They don’t possess any intelligence and are continuously facing issues communicating normally. These categories of people are refurbished under section 80DD of income tax act.
-
Leprosy cured
From the term leprosy cured, you can probably understand that the person’s leprosy has been cured, but the person continues to face physical challenges. Even the person also goes through loss of sensation in both of their hands and feet while a sensation in the eye also takes place.
However, there could be sufficient mobility left in their limbs that allows them to continue moving without being completely disabled. But in case there is complete disability certain conditions should be considered.
Tax deductions for Treatment of a dependent with a disability under section 80DD
Section 80DDlimit of the Income Tax Act doesn’t only offer tax deductions for eligible individuals but also for people with active disabilities. You can claim up to Rs.75, 000 in tax deductions for the medical expenses that are incurred through the Treatment of a dependent who is suffering from a disability.
Moreover, if the person in question is going through severe disabilities of 80% and above, their maximum deductions would be increased above Rs.1, 25,000 every financial year. Among those dependents could be your spouse, children, parents or siblings.
Understand the process of claiming deductions under Section 80DD
The individual who is looking to claim the deduction under section 80DD limit must keep a copy of the certificate that is given to them by the medical authority in the form of 10-IA. It would be prescribed in a manner that people can easily find their way through the problems while claiming the benefits that come under their quota.
Taxable amount that can be received after the death of disabled dependant
Unfortunately, if the dependant disabled expires before an individual is able to claim the deductions, then the person would be liable for showing it as income while carrying the receipt during their income tax filing.
Conditions to look out for claiming deductions under section 80DD
Any insurance or deposits that are made under section 80DD would be liable for deductions. However, certain conditions must be looked at when depositing that amount to claim suitable deductions.
- The health insurance scheme they have applied for must provide the whole amount or the annuity to the dependent in case the taxpayer who was taking care of the disabled dependent expires due to unforeseen circumstances.
- The taxpayer should at least make a nominee for the person who is facing disability while on behalf of the assessee to enjoy the benefits that come through this section 80DD.
- Certain provisions were added to the deductions, thereby making it clear that the disabled person would receive the lump sum payment if the dependent manages to survive over the age of 60 years or above.
Medical Certificate required to submit for Section 80DD Deductions
In order to claim your deductions under section 80DD, remember some points mentioned below.
- Getting a medical certificate from a neurologist with a doctor of medicine degree in neurology.
- Showing a medical certificate from a pediatric neurologist for children while having a degree that is equivalent to an M.D. in neurology.
- Civil surgeons from any government hospital can also issue the medical certificate required to be eligible under section 80DD.
Documents needed to Claim Deductions under Section 80DD
Here are some of the documents that you must submit in order to get yourself eligible under section 80DD.
Medical certificate
In order to prove yourself disabled, you need to bring a medical certificate that is issued by the respective authorities. Otherwise, you won’t be able to get the benefits that can be availed under this act.
Form 10-IA
If the person is disabled and is suffering from autism, blindness and hearing impairment, they must have the form 10-IA with them. This would be crucial for them to avail themselves of the benefits that come under section 80DD.
Self-declaration certificate
Alongside the other documents that have been discussed, the dependent disabled person must submit a self-declaration certificate detailing the expenses incurred throughout the financial year. This would include the payment given to nursing, training, physiotherapy, and other related forms of treatment.
Insurance premiums paid receipts
Although a self-declaration certificate is considered enough for most of it. Sometimes, you might have to show the insurance premium receipts paid by the taxpayers. This will help you get everything online while continuing to receive the benefits that can be found under section 80DD.
Here are a few pointers to look out for when getting your section 80DD deductions
- In case the dependent disabled dies in the middle of a fiscal year, the individual can tax those payments under the income tax brackets that are usually followed.
- The deductions that are given through sections 80DD and 80U can be availed over and above any other deductions that are defined under the Income Tax Act.
- Deductions saw themselves increased after A.Y. 2015-16 in multiple categories of disabilities. Previously, the amount was Rs.50, 000 for disabilities, which was under 40-80%.
However, that was soon increased to Rs.75, 000 for severely disabled persons suffering from 80% disability. Meanwhile, that amount also increased from 1 lakh to 1.25 lakh in case of maximum deductions.
Also, Read – Section 80U – Tax Deductions for Disabled Individuals FY 24-25
FAQs
Who is eligible for 80DD?
The taxpayers, i.e., the individuals or members of HUFs who are taking care of the dependant disabled, will be eligible under section 80DD. However, considerable proof needs to be shown before they can come under the evaluation of this section under the income tax act.
What are the diseases included in 80DD?
The diseases that are covered under section 80DD are blindness, hearing impairment, intellectual disability, AIDs, chronic kidney disease, dementia, locomotor disability, breast cancer, leprosy cured, aphasia, cerebral palsy, chorea, motor neuron disease, hemophilia, thalassemia and neurological disorders.
Who is eligible for deduction under 80DD?
The families of dependant disabled are eligible for deduction under 80DD.
Do we need to submit proof for 80DD?
Yes, you need to submit enough proof that is defined under section 80DD to show yourself disabled while availing of the benefits that come through it.
