This deduction is available to all Residents Individual or HUF, for medical treatment of disabled dependent relatives.
- In case of Individual - Disabled dependent can be Spouse, Children, Parents, Brother/Sister (siblings).
- In case of HUF - Any member of the HUF
Disability under section 80DD- The disability should be prescribed by specialized Doctor of specific diseases or having Doctorate of Medicine degree or equivalent qualification etc.
- Low vision
- Hearing Impairment
- Mental retardation
- Loco motor disability
- Metal illness
- Cerebral palsy
- Multiple disabilities
Amount of Deduction under section 80DD-
Deduction allowed varies depending on whether the dependent person has disability or severe disability-
Amount of Deduction
Dependent Person suffering at least 40% of Disability
Dependent Person suffering at least 80% of Disability
Other Conditions to claim deduction under Section 80DD:
- For claiming the deduction in respect of the above, you have to furnish a medical certificate of disability from a Government Hospital certifying the disability of the dependant. The certificate needs to be renewed periodically.
- For people having Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up.
- People have to furnish self declaration certifying the expenditure incurred on account of medical treatment (including nursing), training and rehabilitation of the handicapped dependant.
- You do not have to preserve the actual receipts for expenses incurred. However you will have to produce the actual receipts in case you have any insurance policy or claim amount of expenses from the Insurance Company.
During the financial year 2018-19, Mr. X spent Rs. 40,000 on medical treatment of depended brother who is suffering from disability around 65%. What amount can Mr. X claim for deduction under section 80DD?
Mr. X can claim deduction under section 80DD of Rs. 75,000 (Disability is 65%).
Example 2: During the financial year 2018-19, Mr. X spent Rs. 70,000 on medical treatment of depended brother who is totally blind. What amount can Mr. X claim for deduction under section 80DD?
Mr. X can claim deduction under section 80DD of Rs. 1,25,000 (Disability is 100%).
Tags :Income Tax