Monday, February 11, 2013

Deduction Section 80DD Maint- Medical treatment Handicapped Dependant


on Monday, February 11, 2013

Section 80DD Deduction under this section is available subject to following conditions
  1. Eligible Taxpayers to whom deduction is Available:This deduction can be claimed By Resident Individual/HUF.  He may be ordinary resident Indian or Not ordinary resident Indian. He may be foreign citizen or Indian citizen. However Non resident can not claim this deduction.
  2. Options:Taxpayer may have done any (or both) of following options
    1. The taxpayer has incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant; or  
    2. Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme,
  3. Amount of deduction : A deduction of Rs 50,000 is available. The amount of deduction is fixed irrespective of the amount deposited/expenditure incurred  under option 2.1 or 2.2 as above.(read Circular /clarification issued by CBDT on section 80DD ) Where the dependant is with a severe disability, a deduction of Rs 1,00,000 is allowed. ( Rs 75000/- up to AY 2009-10)
  4. Death of the dependant occurs before that of the assessee:  If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.
  5. Certificate :An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed,However as per new rule 12 no document is to be attached with Income tax return .
  6. Dependant Meaning :The term 'dependant' here refers to 
    • For Individual:the spouse, children, parents and siblings(brother,Sister) of the assessee who are dependant on him for maintenance.
    • For HUF : menber of  HUF  who are dependant on him for maintenance
  7. Depended claim of 80U :Further Dependant themselves haven't claimed a deduction for the disability under section 80U in computing their total incomes.
  8. Disability :Normal disability not less than 40 % and severe disability means more than and equal to 80 %
Example-1: X incurred  an expenditure of Rs 15000/- on medical treatment of his brother who is disabled 56% in Fy 2011-12. Calculate deduction available  ?

Ans: X can claim Rs 50000/- as deduction even though he has incurred an expenditure of 15000 only.However his brother must be wholly and mainly depended on him and his brother has not claimed deduction u/s 80U fo his disability .

Example 2: X purchased a policy with annual premium  of Rs 10000/-  for maintenance  of his handicapped brother who is disabled 56% in Fy 2011-12. Calculate deduction available  ?

Ans: X can claim Rs 50000/- as deduction even though he has paid premium of Rs 15000 only.However his brother must be wholly and mainly depended on him and his brother has not claimed deduction u/s 80U fo his disability .
Check other deduction

DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VIA):

Sl.No.
I.T. Sec.
Nature of Deduction
Amount of deduction
1.
a.




b.
c.
80 CCE
80 C




80 CCC
Limit on Deduction u/s.80C, 80CCC & 80CCD 

Life Insurance Premia, PF, PPF, NSC, ELSS, Units of Mutual Fund referred to u/s.10(23D), Tuition Fees(max. 2 Children), Repayment of Principal of Housing loan, Bank Fixed Deposit of 5 yrs period, notified Bonds of NABARD, Deposit in an account under Senior Citizens Savings Scheme rules, 5 year time deposit in an account under Post Office Time Deposit Rules, 1981 etc.
Premium paid towards approved Pension Fund (like LIC’s Jeevan Suraksha) max. 1 lakh.
Contribution to Central Government Pension Schemes. Upto 10% of salary with matching contribution from Government.                                                 
Maximum overall
Deductions
allowed u/s. 80C,
80CCC & sub-
section (1) of
sec.80CCD

 
2.
Deduction in respect of investment made under an equity savings scheme(only for Resident Individual) (subject to conditions)
50% of the amount invested subject to a maximum of Rs.25,000
3.
(a) Health Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of the assessee(self) or his family(spouse & dependant children) for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000.
(b) Medical Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of his/her parent or parents for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000.
(c) For Senior Citizens in respect of (a) & (b) above
Preventive health check up 
Upto Rs.15,000





Upto Rs.15,000




Upto Rs.20,000







up to 5000/- included in above limit.
4.
(a) Any expenditure for Medical, Nursing & Rehabilitation incurred on dependant suffering from permanent disability including blindness, mental retardation, autism, cerebral palsy or multiple disabilities

(b) Deposits under LIC, UTI’s Scheme & other IRDA approved insurers for the benefit of physically handicapped dependant
Rs.50,000 (Rs.1,00,000 if the disability is severe exceeding 80%)
5.
(a) Actual expenditure incurred on Medical treatment of Self or dependant or a member of HUF suffering from terminal diseases like Cancer, AIDS, Renal failure etc.
(b) For Senior Citizens(self or dependant on whom expenditure on medical treatment is taken)
Upto Rs.40,000


Upto Rs.60,000
6.
Interest on loan taken from Financial/Charitable Institutions for Self/Spouse/Children for pursuing Higher Education (for a max. period of 8 yrs)
Actual Interest repaid

7.
(a) Donations made to National Defence Fund, Prime Minister’s Relief Fund, approved Funds of reputed Educational Institutions, National Trust for Welfare of persons with Autism, Cerebral Palsy etc.
(b) Donations made to Jawaharlal Memorial Fund, PM’s Drought Relief fund, Any approved Charitable Institution/Trust, Religious Institutions, a corporation established by the Government for promoting interest of the members of a Minority Community
100% of Donation



50% of Donation restricted to 10% of Adjusted Gross Total Income  
8.
Deduction in respect of rents paid, provided the assessee is not in receipt of HRA and no house is owned by self, spouse, minor child or HUF in the place of work subject to filing of declaration in Form No.10BA
25% of income
or rent paid in excess of 10% of income
or ceiling of Rs.24,000 p.a whichever is less
9.
Deduction in respect in interest on deposits(not being time deposits) in a savings account with a banking company, a co-operative society and a post office
Rs.10,000
10.
80 U
Persons certified by the medical authority to be a person with disability
Rs.50,000 (Rs.1,00,000 in case of severe disability)


Complete section is reproduced here under


[Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.
80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,—          (a)  incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or
          (b)  paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,
the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year:

Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words “fifty thousand rupees”, the words[“one hundred thousand rupees”] had been substituted.
(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:—
          (a)  the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;
          (b)  the assessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.
(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.
(4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed:

Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income.
Explanation.—For the purposes of this section,—          (a)  “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
          (b)  “dependant” means—
       (i)  in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
      (ii)  in the case of a Hindu undivided family, a member of the Hindu undivided family,
                dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;          (c)  “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) and includes “autism”, “cerebral palsy” and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
          (d)  “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub-section (8) of section 88;
          (e)  “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)[or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
           (f)  “person with disability” means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
      [(g)  “person with severe disability” means—
       (i)  a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or
      (ii)  a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);]          (h)  “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).] 

57 comments: Post Yours! Read Comment Policy ▼
PLEASE NOTE:
We have Zero Tolerance to Spam. Chessy Comments and Comments with Links will be deleted immediately upon our review.

  1. My spouse and my mother are residing and are dependent on me. Disability of both are 40%. Can I claim rebate of Rs. 50,000/- for each disable making a total deduction of Rs. 1,00,000/- from my income under Sec 80DD

    ReplyDelete
    Replies
    1. Total deduction is available 50000/- .You can not claim 50000 for each disable dependent

      Delete
  2. Can I get exemption toward medical treatment for my mother (age 59) for eye cataract operation?

    ReplyDelete
    Replies
    1. You should ask to doctor whether cataract operation is covered under disability or not

      Delete
  3. My daughter is suffering with hearing loss with more than 95% disability (Certified by Govt.Civil hospital), can i claim income tax benefit, under which section and how much amount ?

    ReplyDelete
    Replies
    1. You can claim above deduction amounting to rupees one lakh.Obtain necessary certificate on prescribed performa form prescribed authority

      Delete
  4. MY FATHER IS SUFFERING WITH MULTIPLE DISABILTY CERTIFIED BY NEUOROLOGIST, CAN MY WIFE CLAIM INCOME TAX BENEFIT UNDER 80DD.

    ReplyDelete
  5. MY father has 75% disability can i claim income tax benefit ,and how much ?

    ReplyDelete
    Replies
    1. YES ,you can claim deduction u/s 80DD if your father is depended on you . The deduction is 50000/- standard .

      read more here
      http://www.simpletaxindia.net/2012/02/deduction-section-80dd-maint-medical.html

      Delete
  6. My elder brother is blind handicapped more tha 100% and he is in my guardianship. I expand much money to his ttreatment for multiple decease, Can I claim income Tax benefit undwer 80DD, if yes what requirement need to furnish,
    Sanjay Kumar

    ReplyDelete
    Replies
    1. yes , you are eligible for deduction u/s 80DD for RS 1,00,000.

      You have to arrange a certificate of your brother blindness under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act,

      which I think you may already have,

      if not, then get it from your local Govt Hospital.They have prescribed forms to certify this.



      Delete
  7. My son of 9 yrs old has 50% disability can i claim income tax benefit ,and how much ?.... Do I need to produce certificate from doctor...?.

    ReplyDelete
    Replies
    1. If your son is mainly and wholly depended on you then you can claim deduction under this section for Rs 50000/- irrespective of amount of expenditure.

      You should get a certificate from medical authority(contact nearest govt hospital) for your son's disability .

      The certificate should only be obtained ,not to produce any where .Keep it in safe custody ,and show it if demanded at later stage .

      Delete
  8. My Brother is 40% disabled,i have already given the Disability certificate to company for TDS deduction. Should i need to produce bills for the same & he is not undergoing any treatment. Is that complusory to produce bills to get Rs 50000/- deduction U/s 80 DD . Pls suggest

    ReplyDelete
    Replies
    1. Deduction under section 80DD is fixed irrespective to amount of expenses incurred ,so no need to submit expenses bill for Rs 50000/- or any other amount.

      Delete
  9. My dad is dependent on me. His left leg and left hand are paralysed. I have disability certificate. Am I eligible for it?

    ReplyDelete
  10. Dear Sir,

    My father is 80% hearing disabled and till last year it was assumed to be in Severe Disable category. Could you please clarify for 2012-13 will I be able to get 50,000 or 1,00,000 exemption?

    Best regards,

    Ravindra

    ReplyDelete
    Replies
    1. 80% DISABILITY is also covered in severe disability .so you are eligible for 100000 deduction

      Delete
  11. Dear Sir,

    My son is 2 years old and suffering from Cerebral Palsy. He is fully dependant on me.

    Can I claim rebate iunder 80DD ? How Much - Rs50000 or Rs.100000 ? Only Medical Certificate is enough to claim this or do I need receipts as well?

    What about 80DDb? Can I claim from 80DDb as well? Needs receipts or only Medical certificate is enough.

    Regards,

    ReplyDelete
  12. Dear Sir,
    My son is suffering from down syndrome (M.R.). He is getting informal education from a reputed public school. I spent Rs. 5500/- (including transport. development fee etc.) per month on his informal education. Can I claim rebate under 80DD and how much amount I can claim?

    With regard

    ReplyDelete
  13. Dear Sir,
    My son is suffering from down syndrome (mental retardation). He is getting informal education from a public school. I spend Rs. 5500/- (including transportation, development fee etc.) per month on his education. Can I claim rebate under 80DD and how much?

    With regards

    ReplyDelete
  14. My son is suffering from schizophrenia,OCD and epilepsy. The doctor attending him at NIMHANS, Bangalore has certified that he has more than 75% disability .How much tax rebate can be claimed by me?
    SUKUMARAN> THALASSERY

    ReplyDelete
  15. My sister (60%) & brother (80%) disability. Can i claim rebate both & how much? For both i have govt doctor certificate but not 10 IA.
    Sushan

    ReplyDelete
  16. My wife was suferring from Choroidal Neovascularization to her right eye. Her let eye vision is already very weak. So at the time of admition to hospital, she was not able to see anything. After giving treatment for three months, now she is able to see. The total treatment expenditure was Rs.135000/- How I can claim for deduction under 80DD? Please reply urgently.

    ReplyDelete
    Replies
    1. If have certificate of disability under (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or can get this from medical officer as prescribed .

      after this certificate you can get 500000 deduction fixed if disability is more than 40% but less than 80 %.

      and 1000000 deduction if disability is 80%

      wife must be dependent on you

      Delete
  17. I am residing in my own house .Can I claim in come tax exemption . If so how much?

    ReplyDelete
    Replies
    1. No ,you can not claim exemption/deduction for house rent allowance

      Delete
  18. My husband is a heart patient having undergone stenting and pacemaker implantation.He is dependent on a lot of medicines and occasionally has to undergo lots of tests.Can I claim I.Tax rebate on the expenditure incurred?

    ReplyDelete
  19. my cousin is mentally retired. can my uncle can claim for tax rebate??

    ReplyDelete
  20. my father is 100 % disale and he is a govt empoloy i want treatment of stem cell thearphy its cost is 25 lacks to 25 lacks hamre pas itne pase nahi h govt medical treatment ke liye kitna pasa de sakti h plz sir reply me i realy thanful to u

    ReplyDelete
  21. mere father govt employ h or vo 100% disable h plz muje bataiye ke hum income kese bacha sakte h plz tell me

    ReplyDelete
  22. My Nephew ( Brother's son) is 85% disablity and they are depondent on m. can i claim tax examption ? (as a individual)

    ReplyDelete
    Replies
    1. Nephew is not covered in relative list as per section 80DD

      Delete
  23. My Grandmother is completely Bed-ridden following a Surgery. Can i claim exemption u/s 80DD

    ReplyDelete
    Replies
    1. Grand Mother is not covered in relative list as per section 80DD

      Delete
  24. My father was bedridden since 13 july 2009 with locomotar disability and he expired on july 8,2012 at the age of 89.he was dependent on me.can i claim exemption. please guide

    ReplyDelete
    Replies
    1. yes , you can claim deduction .However you have to arrange certificate from govt hospital.

      Delete
  25. My elder brother and his family(wife and a daughter doing graduation)are dependent on me.can i claim exemption.

    ReplyDelete
    Replies
    1. This deduction is available if relative depended on you is handicapped.
      From above relatives, only your brother falls under definition of
      section 80DD .

      so if your brother is handicapped then you can claim deduction

      Delete
  26. I have my dependent's Doctor Certificate which we obtained in the year 2008. Is that valid now? or should I get a new one?

    ReplyDelete
    Replies
    1. if disability of your relative needs review then you should obtain fresh certificate .But if no such review has been refereed in the certificate (means disability is shown as permanent ) then old certificate remains Good

      Delete
    2. Thanks Raja. That helps! A good site indeed..

      Delete
    3. Question related to above question.
      We have taken certificate from authorised medical officer in 2009 for permanent disability. But it is not on Form No 10-IA. Should we take fresh certificate on form 10-IA.

      Delete
    4. As per rules the certificate must be on form 10IA so if you have not taken it earlier then you should take it now

      Delete
    5. As this is financial year end. I have to submit this to my HR in weeks time. But my brother is staying very far & he is bedridden. Also we need to take him to doctor for collecting this certificate. Any possibility that i can submit old certificate (above mentioned) for current year?

      Delete
    6. If your HR is ready to accept it then no need discuss details with them and avail deduction on the basis of old form.

      As you may aware of that nothing is to be attached with Income tax return now.

      So avail the deduction and try to get it on prescribed performa next year.

      Delete
  27. My dad is dependent on me. His left leg and left hand are paralysed. am i eligible for tax exemption? is yes under which clause? how is the amount exempted? please clarify.

    ReplyDelete
    Replies
    1. you can claim deduction u/s 80DD after getting a certificate from govt hospital .

      If disability is 40-79 % then deduction available is 50000 ,if disability is 80 % or more then deduction is 1 lakh

      Delete
  28. My Baby (New Born) Died with Disabilities and Can i claim the medical expenditure under 80DD. I have the Death Summary report with medical provisional bill,.. total expenditure 3.5 laths.

    ReplyDelete
    Replies
    1. if you can arrange certificate as prescribed above then yes you can claim deduction which can be maximum 1,00,000

      Delete
  29. My son is suffering from Muscular Dystrophy since 2003 and I need to apply for tax deduction under 80 DD now. And how fast I can get the required certificate.

    ReplyDelete
    Replies
    1. if your son has disability due to above reason or otherwise then you can claim deduction

      Delete
  30. I HAVE PHYSICALLY HANDICAPPED CHILD.DISABILITY ABOVE 60%.MY SPOUSE EMPLOYED.IF I AND SPOUSE CAN CLAIM THIS BENEFIT UNDER 80DD

    ReplyDelete
    Replies
    1. Either your wife or you can claim this deduction .This deduction can not be claimed by both of you as it is be given to person on whom disabled person is dependedent wholly and mainly.

      So deduction can be claimed either by you or your wife ,but not by both of you.

      Delete
  31. The assesse is expending on the handicap however, the handicap does have income and files his own returns.

    Can deduction us 80dd to the assessee be declined if:-
    1. Hanicap dependant files his own returns &
    2. Handicap Dependant does NOT claim deduction us 80u?

    ReplyDelete
  32. Expenditure incurred on Eye Cataract operation can be claimed under IT rebate??

    ReplyDelete