24 December 2018
My mother in law is tax payer. Her two unmarried daughters who are suffering from severe disability obtained.State Government certificate for their severe disability by the Government authorized panel of doctors which was 80% and more.
My query: 1) This disability certificate issued for severe disability by State Government is enough to claim deduction under section 80DD ?
2) Whether eligible to claim deduction for Rs. 1250000.00 or Rs. 250000.00 for two daughters?
Grateful, if the above queries could be looked into and provide your valuable advice on this matter.
25 December 2018
Disability for Section 80 DD is defined under clause (i) of section 2 by the ‚ÄúPersons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995‚ÄĚ as well as disabilities includes in clauses (a), (c) and (h) of section 2 of National Trust for welfare of Person with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.
Hence this includes the following disabilities: Cognitive or severe mental disabilities Low vision Blindness Leprosy-cured Hearing impairment Locomotor disability Mental illness Autism Cerebral palsy Or Multiple disabilities It is essential to note that person must not suffer less than 40% of any of the above disabilities. When it comes to sever disability 80% or above of one or more of the mentioned illnesses or disabilities is considered. The income tax deduction which is allowed, under section 80DD is Rs. 50,000 for what is defined earlier as severely disabled dependant (80% and over disability) This limit went upto Rs. 1,25,000 since 2016. Deduction is not dependant on the amount of expenses incurred regardless the real expenses disabled dependent relative is lesser than amount mentioned above, the tax assessed will be eligible for the full deduction. For Individual:the spouse, children, parents and siblings(brother,Sister) of the assessee who are dependant on him for maintenance.
If above condition satisfy you can claim Maximum Rs.125000/- Deduction under 80DD
10 January 2019
Thanks for the reply. As you mentioned in your reply, the conditions for arriving severe disability for deduction under 80DD is found to be satisfied in our case. As two children are affected by Locomotor disability more than 80% and permanent in nature as certified by the panel of 4 state government deputed doctors in different filed of specialization and obtained the severe disability certificate.which says there was no need for further reassessment in this case.
My clarification is sought for claiming this deduction od Rs. 125000.00 under 80DD, the State Government issued severe disability certificate is enough if Income tax official asked for a proof of claiming the same or required to make another certificate as mentioned in IT rule 11A i.e., Form no.10-IA.