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Are you taking care of a disabled dependent? Are you paying exorbitant medical bills for a disabled dependent? If yes, then it’s very much important for you to know about the deductions available for such expenses while filing returns.
If you have a disabled dependant, then you can get tax benefit under section 80DD of the Income Tax Act. This deduction is available only when the dependant is disabled and he is wholly dependent on the individual/ HUFs claiming such deductions. This deduction is allowed to help you to take care of your disabled dependents and their special needs. Section 80U of Income Tax Act allows the disabled individual to get tax benefit. So one thing that should be kept in mind is that an individual cannot claim deduction for disabled dependant under section 80DD if the disabled dependant has already availed the deduction under section 80U. Who can claim deduction under section 80DD? Deduction under this section can be claimed only by a resident individuals or HUFs for a disabled dependent who is wholly dependent on the individual/ HUF. (NRI i.e. non-resident Indian cannot claim this deduction) Who is a disabled dependent?
Disabilities mentioned under section 80DD The following is the list of disabilities covered under section 80DD:
Conditions for claiming this deduction Deduction under section 80DD can be claimed only when:
Amount of deduction The amount of deduction allowed depends on whether the dependant is disabled or severely disabled. Disabled dependant Disabled person is the person with 40% or more of one or more disability. In case of disabled dependant, the taxpayer can claim the deduction of fixed amount of Rs 75,000, irrespective of the actual expense incurred. Severely disabled dependent Severely disabled person is the person with 80% or more of one or more disability. In case of severely disabled dependant, the taxpayer can claim the deduction of fixed amount of Rs 1,25,000 irrespective of the actual expense incurred.
Documents required to claim this deduction
Example If Mr Rahim spends Rs 55,000 for the treatment of his disabled dependant. How much deductions can he claim under section 80DD? Answer: Mr. Rahim can claim the deduction of full amount of Rs 75,000 under section 80DD for disabled dependant and Rs 1,25,000 for severely disabled dependant, irrespective of the actual expense incurred by him. In this way, you can avail the tax benefits of fixed amounts of either Rs 75,000 or Rs 1,25,000, depending upon the disability, under section 80DD, for caring for a disabled dependant at the time of filing ITR online.
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AuthorPravin Jagtap is a Tax expert, who writes about tax-efficient strategies in diverse business situations in his Articles. His write-ups throw light on fiscal changes and overall development of the economy. A B.Com.(Taxation) graduate, is an anticipator for changes in the tax legislation, is well-versed with the tax-classification and responds quickly to the queries of people regarding tax and personal finance. ArchivesCategories |