Under section 80dd income tax deduction act, the taxpayer avails the tax benefit of expenditure made against disabled family member dependent on them.
There is a separate slot available in ITR form (changed from FY 2017-18) to enter the amount u/s 80DD.
The person is dependent with a disability – What does it mean u/s 80DD.
According to “Disabilities Act of 1995” if the person includes following disabilities said to be disabled.
- Mental disabilities
- Low vision
- Hearing impairment
- Locomotor disability
- Mental illness
Also Read: Section 80D Income-tax Act – Tax benefit for (Health, Medical Treatment)
These disability are allowed under section 80DD by income tax authority.
Individual or a Hindu undivided family, who is a resident in India are elegible to claim u/s 80DD.
Section 80dd income tax deduction consists of two sub-sections.
Income tax department u/s 80DD required information considering two subsections.
- The dependent person with a disability
- The dependent person with a severe disability
Documents required to claim u/s 80DD
For the purpose of claiming u/s 80DD some paper trail is mandatory.
Also Read: What is Fees u/s 234F? (Penalty for Late Filing Income Tax Return)
A proper certificate in a prescribed format (Form 101A) required to submit by the authorized person which certified the disability of the person.
Authorized person include:
- Chief Medical Officer (CMO) or Civil Surgeon of a government hospital.
- Neurologist having a degree of “Doctor of Medicine” (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree).
Click here to download of Form 10 1A :
You need to submit a self-undertaking certificate which states the details of expenditure and the information is correct and verified.
Amount of Deduction under Section 80DD and Tax Saving
The deduction allowed u/s 80DD:
Also Read: Tax deduction u/s “80G” of Income Tax Act (relief on charity)
- If the person (dependent) has at least 40% of any of the specified disability (mentioned above in the article), then he is considered a person with a disability.
- If the person (dependent) has at least 80% of any of the specified disability (mentioned above in the article), then he is considered a person with a severe disability.
Note:- If the dependent died and the amount received by the individual, the amount received is taxable under the account of the individual as income.