What is section 80DD?
There are several sections of the income tax act of 1961. Section 80DD is one of them that allows deductions for the medical expenses of a dependent individual with disabilities or a differently abled person. Under Section 80DD any person can claim a deduction who is paying for the treatment of conditional suffering from a disability.
Who is eligible for deduction under section 80DD?
To avail of the deduction under section 80DD, a person should meet the following conditions.
- An individual can not claim a deduction under section 80DD if he/she already had claimed a deduction under section 80U for herself/himself.
- Residents individuals and Hindu Undivided Families can claim the deduction for disabled persons. But notably, non-residents are not eligible to avail of deductions under section 80DD.
- Individuals can not claim deductions for the paid medical expenses on themselves as per section 80DD.
- Any individual who wants to claim the deduction has to furnish a copy of the certificate provided by the medical authority.
- A person or any individual should have a disability of more than 40%.
Covered diseases under section 80DD
There are several disabilities mentioned in section 80DD for individuals to avail of the tax deductions under section 80DD. Some of the major disabilities are given below- Blindness - This is a condition when an individual can not see anything because of the absence of sight. Those individuals have limited vision eyesight of 20 angles. These individuals are eligible to avail the tax benefits. Locomotor disability - This is a disability that restricts movements of the body’s parts and any form of cerebral palsy because of the inability of bones and joints muscle. Leprosy-cured - Those individuals who have recovered from this disease but due to the present effects, they are still going through it such as losing eyesight functioning, and hands movements along with feet can avail of the tax deductions under 80DD. Hearing impairment - Individual who suffers from are unable to hear the sound/frequencies of more than 60 decibels. These individuals fall under the category of section 80DD. Mental retardation - Individuals who have limited or incomplete mental development are considered under this disability. Mental illness - Mental illness means a disorder related to mental health except for mental retardation. Low vision - An individual with low vision who has impairment of visual functioning even after treatment or standard refractive modification but who uses or is capable of using eyesight to plan or execute a task with an appropriate device or gadget.
What details are mentioned in the certificate?
Once you get a certificate, Make sure to go through certain mandatory details that should be in the certificate. Following are the important details-
- Patient’s name and age
- Address
- Name of the parents
- Name of the disease or disability
- Registration number and address
- What kind of disability patient is suffering from (progressive/improvable/non-progressive)
- Signature of the patient
- Name of the hospital or institution
How to get a certificate under section 80DD?
As per section 80DD, It is mandatory to get a certified certificate of medical authority. A neurologist who is having a degree of Doctor of Medicine (MD) in Neurology (in the case of children, a Paediatric Neurologist has an equivalent degree) is a Government hospital’s civil surgeon.
Deduction limit under Section 80DD
| Type of Disability | Deduction Limit |
|---|---|
| Non-Severe Disability | 75,000 |
| Severe Disability | 1,25,000 |
Important things about section 80D
As per section 80DD, Individuals and Hindu undivided Families are eligible to claim the deductions. NRI or non-residents can not claim deduction under section 80DD. If an individual is qualified for a refund for the disability or disease then he/she must undergo a refund and get a new certificate. During the fiscal year, the disability must be applicable. You don't have to furnish any medical proof. Regardless, you must get the certificate in Form 10-IA from the mentioned medical authorities. If the dependent individual dies before the taxpayer then an amount equal to the amount paid or deposited will be taxable as income.
