FINANCIAL PLANNING FOR SPECIAL NEEDS FAMILIES SERIES – BLOG 6
Hello Friends!
Continuing with my series, “Financial Planning for Special Needs Families”, in today’s blog I have discussed in detail Deduction under Section 80DD of the Income Tax Act, 1961 for Disabled Dependent.
– What is this benefit under Income Tax Act, 1961?
This benefit is in the form of a deduction from the taxable income to an Individual/HUF who has a dependent with disability.
– Who can claim deduction under Section 80DD?
This Deduction can be claimed by
• a Resident Individual/HUF
• has a dependent with disability
• has incurred any expenditure for medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability or
• has paid or deposited any amount towards an approved scheme (i.e. insurance policy etc) for the maintenance of a disabled dependent.
– Who is dependent under section 80DD?
Person, who is dependent, wholly or mainly, for support and maintenance and has not claimed deduction under section 80U during that year.
In case of an individual, dependent can be Spouse, Children, Parents, Brothers & Sisters or any of them. In case of HUF, dependent can be any member of HUF.
– What is the amount of deduction?
The Amount of deduction depends on the level of disability of the dependent
However, this deduction cannot be claimed if the disabled dependent has claimed deduction under section 80U.
– What are the disabilities eligible for deduction under section 80DD?
Autism
Celebral Palsy
Blindness
Low vision
Leprosy cured
Hearing impairment
Locomotor disability
Mental retardation
Mental illness
– What document is needed to claim this deduction?
A valid certificate from a medical authority.
– Which medical authority issues this certificate ?
o MD in Neurology
o Paediatric Neurologist in case of children
o A Civil Surgeon or CMO of a govt Hospital
– Is the deduction available to NRIs?
No
– Whether filing of Income Tax Return mandatory to claim this deduction?
Yes
I hope, the detailed information about Deductions available under Sections 80U (previous blog) & 80DD have been useful to everyone. However, for any other information or clarification., feel free to get in touch on WhatsApp number +91 9910353219 or email shivanilohia.slohia@gmail.com
Author Shivani Lohia
Shivani Lohia is a Chartered Accountant by profession and mother to 8 years old child on the autism spectrum. The cause of autism awareness is very close to her heart and she strongly believes in equal education for all & strongly advocates inclusion. She has been homeschooling her son since he was 5 years old.
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