DEDUCTION U/S 80DD AND US 80DDB- EXPENCES FOR DISABILITY AND CRITICAL ILLNESS

SECTION 80DD DEDUCTION FOR DISABILITY:-
 

Section 80DD deduction can be claimed by individuals who are resident in India and HUFs for maintenance and medical treatment of a disabled dependent. The maximum deduction under section 80DD is Rs.75,000 for disabled dependants. In case the disabled dependent is a person with

severe disability, the maximum deduction allowed is Rs.1.25 lakhs. Deduction under Section 80DD is not dependant on the sum of expenses incurred. Hence, even if the actual expenses on the above mentioned disabled dependent relative is less than the amount mentioned, a full deduction can be claimed under Section 80DD.

The ‘dependents’ in respect of this section would include spouse, his children, his parents, brothers and sisters of the individual or any of them. The dependent as the world suggests should be ‘dependent on the individual’ for his or her maintenance and support.

DISABILITY MEANS:-        

The following disability include in under section 80DD

• Cognitive or severe mental disabilities
• Low vision
• Blindness
• Leprosy-cured
• Hearing impairment
• Loco-motor disability
• Mental illness
• Autism
• Cerebral palsy
• Or Multiple disabilities

It is essential to note that person must not suffer less than 40% of any of the above disabilities. When it comes to severing disability 80% or above of one or more of the mentioned illnesses or disabilities is considered.

DOCUMENTS REQUIRE FOR CLAIMING 80DD:-

• A medical certificate is mandatory when one wishes to claim the deduction with respect to the mentioned disabilities from any Government Hospital. The document should certify the disability of the dependant and the person they are dependant on. The certificate needs to be renewed periodically.
• Individuals suffering from Autism, Cerebral Palsy or any multiple disabilities, would require form number 10-IA to be filled and submitted for them.
• There are also 2 formats other than the one mentioned earlier, for an individual who is suffering from any sort of severe mental illnesses and the rest of the disabilities.
• Individuals also have to submit a self-declaration, signed and certifying the expenses incurred pertaining to the medical treatment which includes nursing, rehabilitation as well as training of the disabled dependent.
• It is not required to preserve the actual receipts for the disabled dependant's expenses. But the actual receipts need to be submitted in case the claim deduction with respect of payment made to an insurer such as LIC, UTI, and others for getting insurance plans or schemes for the maintenance of the disabled dependent. 

 80DDB TREATMENT EXPENCES FOR CRITICAL ILLNESS:-

Section 80 DDB includes expenses occurred for specified diseases or for critical illness for individual or HUF for himself or for his dependant.

Under Section 80DDB an Individual can claim a deduction up to Rs 40,000/- for normal citizen and up to Rs. 1,00,000/- for senior or Super senior citizen for the expenses for specified diseases listed in INDIAN INCOME TAX ACT FOR THE ASSESSMENT YEAR 2019-20.

The ‘dependents’ in respect of this section would include spouse, his children, his parents, brothers and sisters of the individual or any of them. The dependent as the world suggests should be ‘dependent on the individual’ for his or her maintenance and support.

DOCUMENTS REQUIRE FOR 80DDB:-

• A certificate of the disease is required to claim the deduction in your income tax return. The process of getting this certificate has now been simplified by the income tax department.

• For patients who are receiving treatment in a private hospital, the certificate can be taken from the private hospital itself. They don’t have to take a certificate from a government hospital. Certificate must be taken from a specialist with a degree in the specialized field. This degree must be recognized by the Medical Council of India.

• For patients getting treated in a government hospital, the certificate must be taken from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in general or internal medicine or any equivalent degree, which is recognized by the Medical Council of India.

• Certificate in Form 10I is no longer required. The tax department has specified some details that the certificate must include. The certificate must have the name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a government hospital, it should also have the name and address of the government hospital.

DECEASE LISTED ON 80DDB:-

The nature of diseases and ailments which are included for deduction under Section 80DDB are mentioned in Rule 11DD of Income Tax and the same are as follows :

•  Neurological diseases where the disability level has been certified to be of 40% and above - (a) Dementia (b) Dystonia Musculorum Deformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h)Parkinson’s Disease.

• Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

•  Chronic Renal failure

• Hematological disorders

 (i) Haemophilia (ii) Thalassaemia