Who can claim a deduction under section 80DD?

 

What is the maximum amount of deduction allowed under Section 80DD?

Fixed amount of deductions are allowed under Section 80DD, irrespective of the actual expenditure. However, the amount of deduction depends on the severity of the disability.

• Where the disability is more than 40% and less than 80%: Rs 75,000.
• Where the disability is more than 80%: Rs 1,25,000.

Note: Before the Financial Year (FY) 2015-16 (FY 2014-15 & earlier years) – The deduction limit was Rs 50,000 where disability was at least 40% and Rs 1,00,000 where there was more than 80% disability.

Necessary Documents to Claim Tax Deduction Under Section 80DD

The following documents will be required to be submitted to claim tax benefits under Section 80DD of the Income Tax Act, 1961:

• Medical Certificate: In order to avail of tax deduction under Section 80DD, the taxpayer is required to provide a copy of the medical certificate as evidence of the dependent's disability.
• Form 10-IA: If the dependent with a disability is affected by autism, cerebral palsy, or multiple disabilities, it is necessary to submit Form No. 10-IA.
• Self-Declaration Certificate: Taxpayers must provide a self-declaration certificate stating the expenses incurred on the medical treatment, which includes nursing, rehabilitation, and training, of the disabled dependent.
• Receipts of Insurance Premium Paid: While a self-declaration certificate is generally sufficient for claiming most expenses, it is not necessary to keep the actual receipts. However, if the individual claims expenses for insurance policies taken for the disabled dependent, it is important to maintain the actual receipts as proof of the expenses.

• Disabilities covered under Section 80DD

  The following disabilities are covered u/s 80DD of the IT Act, 1961:

  • Mental illness
  • Hearing impairment
  • Mental retardation
  • Cerebral palsy
  • Leprosy-cured
  • Autism
  • Loco motor disability
  • Blindness
  • Low vision