The Income tax department is lenient towards the taxpayers who have a disability or have a disabled family member dependent on them. If you have a dependent person in your family who is suffering from a disability, then you can avail tax benefit under section 80DD. This deduction is offered to help you take care of your disabled family member who is dependent on you.
If the individual himself is suffering from a disability, then he can claim tax benefits under section 80U.
Note: The disabled person should be dependent on the person claiming deduction. The disabled person should not have claimed deduction under section 80U.
Deduction allowed varies depending on whether the dependent person has disability or severe disability.
Table Showing Tax Deduction under section 80DD
|Type||Amount (in Rupees)|
|Dependent person with disability||Rs. 75,000|
|Dependent person with severe disability||Rs. 1,25,000|
The following disabilities are covered under section 80DD of the Income Tax Act, 1961:
The following kinds of medical authorities can certify a person to be disabled:
The section 80DD deals with providing tax deductions to individuals and/or HUFs for caring for a disabled dependent. You will require the following documents to claim tax benefits of section 80DD.
You will be required to produce / submit a medical certificate authenticating the disability of your dependent from a certified medical authority as defined by the law.
In case your disabled dependant is suffering from Autism, Cerebral Palsy or multiple disabilities, you will need to produce form number 10-IA.
You also need to furnish a self-declaration certificate stating the expenses incurred by you on your handicapped dependant for his medical treatment (including nursing), training and rehabilitation.
Since self-declaration certificate is enough for claiming most expenses, you do not need to keep actual receipts of those expenses. However, if you want to claim any deduction payment towards any insurance policies taken for a disabled dependant, then you need actual receipts of expenses.
I have spent Rs.35,000 as expenses for caring for my disabled dependent. How much deductions can I claim u/s 80DD?
You can claim the full amount of Rs.75,000 as deductions under this section for disabled dependent and Rs.1.25 lakh for severely disabled dependents, irrespective of the amount actually spent during the year on care.
Just like section 80DD, there are several other tax saving provisions covered under the Income Tax Act, but you might fail to claim the tax benefits in the absence of proper knowledge and procedures. So, you should take help of tax experts for this job. Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. You can visit any of our retail offices to get your taxes filed and avail year-round support in tax related matters.