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What to qualify under 80DD

Kishore (SSE) (29 Points)

26 April 2011

My son is diagnosed with hearing loss in Apr'2011; loss is more than 80% for both ears. I got him hearing aid (1 Lakh) and he is undergoing speech thrrapy (2,000 INR monthly). Can I claim these expenses under IT section 80 DD or/and 80 DDB for the current financial year 2011-12? If so, what proof should be asubmitted for each of the claims?

Can you please explain the difference between 80DD and 80 DDB?

Regards, Kishore

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5 Replies

CA. Arpita Singhal (Partner) (100 Points)
Replied 26 April 2011

Section 80DD for Medical Treatment of Handicapped Dependents

If you are incurring expenditure for the treatment of your handicapped dependent, you could claim a deduction under section 80DD.

Available Deduction -50000. For severe handicap conditions1,00,000 is the deduction limit.

Scope of Deduction - Deduction can be claimed for dependent parents, spouse, children and siblings. Dependents must not have claimed any deduction for their disability.

Deductions are permissible in either of the following cases.

a) Costs incurred for medical treatment, training or rehabilitation of a disabled dependent, including amount spent for nursing.

b) Amount paid towards an insurance scheme for the maintenance of your disabled dependent in case of your untimely death.

Meaning of Disability- Disability means a person suffering from 40% or more of any of the below disabilities. A severe disability condition is 80% or more of the disabilities.

a) Blindness and Vision problems

b) Leprosy-cured

c) Hearing impairment

d) Locomotor disability

e) Mental retardation or illness

Key factors

a) Individuals would need to produce a copy of the disability certificate as issued by the central or state government medical board to claim deduction.

b) Insurance policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death.

c) If the disabled dependent predeceases you, the policy amount is returned to you, and treated as income for the year in which you receive it, thus fully taxable in your hands.

Section 80 DDB for Treatment of Specified diseases

Costs incurred for treatment of specified illnesses, could fetch you a tax benefit under section 80DDB.

Available Deduction - For individual assesses less than 65 years of age, a deduction limit of40,000 is applicable. For a senior citizen, the limit is Rs. 60,000.

Scope of Deduction - Deduction is applicable for treatment of self, spouse, children, siblings, and parents, wholly dependent on you.

Diseases covered

a) Neurological Diseases (where the disability level has been certified as 40% or more).

b) Parkinson’s Disease

c) Malignant Cancers

d) Acquired Immune Deficiency Syndrome (AIDS)

e) Chronic Renal failure

f) Hemophilia

g) Thalassaemia

Key Factors

If you are already receiving any reimbursement for the treatment from your insurance company or employer, deductions cannot be claimed. If you are receiving partial reimbursement, the balance amount can be used for a deduction.
A certificate would be required from a specialist working in a government hospital, as proof for the specified ailment.

ars (CS) (445 Points)
Replied 26 April 2011

Mr Kishore,

To add to what Arpita said is that in your case you need to have certificate from a doc. of a Gov. hospital- in Mumbai it is J.J. hospital. The certif. must mention the % of loss.

as u said it is more than 80% then u can avail dedction up to Rs. 1 lac. p.a.- kindly read the provisions of 80DD

Further, pl.note that your child with one escort will get railway concession- cert. from J.J.

U may be in touch, as I hv a son with profound loss in both the ears.

tel.: 9322216541

KIYOSH (TAX CONSULTANT) (332 Points)
Replied 26 April 2011

THANKS ARPITA & ARS FOR INFORMATION

REGARDS,

KIYOSH

Kishore (SSE) (29 Points)
Replied 03 November 2011

Dear ars,

I got the disbaility/medical certificate from KGH, Vishakhapatnam. When I loked into IT website, it talks about Form10IA towards 80DD duduction. Is it mandatory. Can't I submit just the obtained medical certificate as a proof?

Please guide me.

Regards, Kishore

Praneet Kumar Bajpaie (CA Final, CS) (23 Points)
Replied 16 January 2012

Originally posted by : Kishore

Dear ars,

I got the disbaility/medical certificate from KGH, Vishakhapatnam. When I loked into IT website, it talks about Form10IA towards 80DD duduction. Is it mandatory. Can't I submit just the obtained medical certificate as a proof?

Please guide me.

Regards, Kishore

Hi Kishore,

No Form 10IA is mandatory.