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People with disabilities are among the most marginalised groups in the world. People with some disability have to suffer not only because of their physical condition moreover society also plays its part in discouraging these people. Financial expenses of the disabled ones and their family member also go up because of the medicinal charges. If such expenses are made taxable, it becomes difficult for the person to manage the budget in such adverse conditions. To avoid this hike in medicinal charges, Indian Law has laid down a provision in the Income-tax Act, 1961. Section 80DD of the Income Tax Act specifically deals with disabled people. The percentage of disability determines the income tax deductions provided to the relatives of the disabled.
Table of Contents
Diseases covered under Section 80 DD are as follows :
for the disabled dependant is given by :
An individual who belongs to a Hindu Undivided Family (HUF) and the person taking care of the
disabled in the family can claim for Deduction under Section 80 DD.
Deductions made under Section 80 DD of the Income Tax Act, apply
to the expenses made on medicines and other medical bills. The amount also
includes the insurance premium paid
to the insurance companies to cover the cost of money spent on maintenance of
the disabled person.
related to insurance premium
Not every insurance scheme qualifies for the claim of
deduction under Section 80 DD. The policy should insure the life of the
taxpayer and should be on his name.
The premium of the insurance should be paid annually or in a
lump sum amount to benefit the dependent disabled.
The nomination of the policy should be made on the name of
disabled dependent or any other person or trust that would receive the benefit of
the disabled person.
The amount of deduction allowed under section 80 DD of the
Income Tax Act depends upon the severity of the disability.
The family of a person with a disability percentage above 40
but less than 80 can claim tax deduction up to Rs 75,000
The family of a person with a disability percentage above 80
can claim tax deduction up to Rs 1,25,000
To claim the deductions under Section 80 DD of the Income Tax Act, the taxpayer
will have to submit a copy of the medical certificate given by the related
Form 10-IA: If a person is suffering from Autism,
cerebral palsy or multiple disabilities, then Form 10-IA needs to be submitted.
Certificate: Taxpayers, before applying for deductions under Section 80 DD has
to provide a self- declaration certificate mentioning the expenses made on the
Receipts of Insurance
Premium Paid: Taxpayers will also
have to provide the receipts of Insurance Premium Paid, to avail deductions
under Section 80 DD.
The pain and agony through which the disabled person and his
family members go through cannot be expressed in words. The society in which we
live in adds on to the agony of disabled ones and their family members by
passing unnecessary remarks. As a remedy to this situation, Indian Law added
Section 80DD to the Income Tax Act which deals explicitly with disabled people.
This section provides deductions in expenses made on medicines and the
maintenance of the disabled person. This support from the government and other
authorities cannot end the actual pain and suffering of disabled people and
their family members. However, these efforts can help them in managing financial
expenses to some extent.
A passionate legal content writer, a nature enthusiast, an avid reader, and a part-time thinker. By means of conducting in-depth research on industry related topics, Shubham often builds flawless and intelligible legal content for populace from all walks of life.
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