Section 80DD: A helping hand for differently abled

Most people know Section 80D to be a great instrument for tax saving in the form of rebates that it gives helping hand on medical insurance premiums. But there is a provision under section 80DD which extends this benefit even further for people who are supporting a dependent suffering from disability.

 

1. What is Section 80DD and how much tax can you save under its provisions?
2. Who is eligible for rebates under Section 80DD?
3. What is the definition of a dependent under section 80DD?
4. Which disabilities are allowed for rebate under section 80DD?
5. What expenses are allowed under the definition of Maintenance in section 80DD?
6. What documents are needed to claim rebate under section 80DD?
7. Download Form 10-IA for Section 80DD rebates

What is Section 80DD and how much tax can you save under its provisions?

Rebates under 80DD are available to taxpayers who have dependents with a certified disability and money has been spent on maintenance of said dependents. Under this section the quantum of tax break is as follows

• If the disability is between 40% to 80%: Rs 75000
• If the disability is 80% or more: Rs 125,000

The nature and degree of disability is certified by a registered medical practitioner  

Who is eligible for rebates under Section 80DD?

 The definition of tax payer under 80DD is as follows: 

1. Individual with Disabled Dependant: An individual taxpayer can claim a deduction under Section 80DD for expenses relating to a disabled dependent, who can be a spouse, child, parents or sibling.

1. 1. HUF with Disabled Dependant: If the taxpayer is a member of a HUF (Hindu Undivided Family), then the deduction can be claimed for supporting a disabled dependent who is a member of the said HUF.

One important aspect to note is that the taxpayer is not allowed deductions under section 80DD if the dependent himself has availed tax rebate under Section 80U.

What is the definition of a dependent under Section 80DD?

Under section 80DD dependents include Oneself, one’s spouse, dependent children, dependent parents, and dependent siblings. This person should be clearly dependent on the tax payer for support.

Which Disabilities are allowed for rebate under section 80DD?

For the purpose of Section 80DD tax rebate, following disabilities are covered:

1. Mental illness
2. Hearing impairment
3. Mental retardation
4. Cerebral palsy
5. Leprosy-cured
6. Autism
7. Locomotor disability
8. Blindness
9. Low vision

What expense are allowed under definition of Maintenance in section 80DD?

Expenses allowed as deduction under Section 80DD include nursing, training and rehabilitation of a dependant. Also, premium paid for any insurance policy with purpose of supporting the maintenance of dependent, immediately or in the future, also qualifies for deduction under section 80DD.

What documents are needed to claim rebate under section 80DD?

1. Medical Certificate: The taxpayer is required to provide a copy of the medical certificate as evidence of the dependent’s disability

1. Self-Declaration Certificate: Taxpayers must provide a self-declaration certificate stating the expenses incurred on the medical treatment (nursing, rehabilitation, and training etc) of the dependent.

1. Receipts of Insurance Premium Paid: While for other expenses self-declaration is considered enough, a receipt issued by the insurance company is mandatory if you are claiming section 80DD rebate on an insurance policy.

1. 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.

Download Form 10-IA for Section 80DD rebates

Share this with anyone who is taking care of a disabled person

Caring for a family member who is disabled is a burden of love. And so many people do it without complaints or expectations. The tax rebate under section 80DD is a small contribution from the government and society towards making that burden lighter, even if by a small amount. Sharing this with someone who can benefit from this information can be of great help.

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