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In India, taxes play an important role, as a major part of the government income is formed out of the taxes paid by the citizens. That’s why an individual is expected to file Income Tax Return (ITR) on time, in order to make payment of taxes, as per the prevailing tax slab rates, if he or she is earning above the exempted amount. Further, the concept of Income Tax Deduction helps the taxpayer in reducing the overall tax liabilities and assist in tax saving. Chapter VI A of the Income-tax Act, 1961, deals with the concept of deductions to be made while computing the total income. This chapter includes deductions from section 80 C to 80 U.
In this blog, we will be talking about section 80DD of the Income Tax Act, 1961. This section deals with the maintenance and medical treatment of the person under disability. All the Indian residents are entitled to claim tax deductions under Section 80DD of the Income Tax Act, 1961. Further, in order to claim the tax deduction, an individual is required to submit the medical bill, medical certificates, and all other required supportive documents. Furthermore, the cost of medical treatment, in the past few years has been rapidly rising, which has made quality medical treatment a difficult task, especially for the lower and middle-class section of the Indian society.
The Indian Government with the aim of providing relief to these groups of people especially the people dependent with some disability or with severe disability may now be offered some help by way of section 80 DD of the Income Tax Act, 1961. Before going into depth, it is significant to note that the Income Tax Authorities have the autonomy to make changes in the rates and minor amendments, but the relief aspect had to always be based on 1961.
Table of Contents
To be qualified for claiming the deduction under the section 80DD of the Income Tax Act, 1961, one must –
The following are the listed expenses that are exempted from the income tax under section 80DD of the Income Tax Act, 1961–
If a person falls under any of the following circumstances, he or she is entitled to be called as a disabled dependent under the section 80DD of the Income Tax Act, 1961 and hence the person’s caretaker can avail the benefit income tax deductions –
Disability required for the Section 80 DD is well defined under Section 2 clause (i) of the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995” and also includes disabilities mentioned in clauses (a), (c) and (h) of the Section 2 of the National Trust for welfare of Person with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. Hence, the following are the disabilities which are included under section 80 DD of the Income Tax Act, 1961 –
Further, it is significant to note that the person concerned must not suffer less than 40 per cent of any of the above-mentioned disabilities. Furthermore, when it comes to severe disability, 80 per cent or above one or more of the above-mentioned illnesses or disabilities are considered.
As per the Income Tax Laws, following are the people who can help an individual in getting a medical certificate in order to claim tax deductions provided under Section 80DD of the Income Tax Act, 1961 –
Before going into depth, it is essential and necessary to understand that in the case where a disabled dependant dies prior to the taxed individual, then the concerned individual will be taxed regarding the premium amount paid in that financial year, as this would be considered as the survivor’s income for that financial year. Hence, all the income will be completely taxable.
Following are the Conditions which are required to be fulfilled for availing Tax Deduction –
Also, Read: A Complete Overview of Section 80DD of the Income Tax Act, 1961
Shivani has completed her B com LLB (Hons) and has the experience of writing various research papers during her college time. Earlier she was working as an Associate in a law firm, but her interest in writing made her pursue content writing as a career. Her core area of interest is in writing about various legal enactments, tax and finance.
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