As we have discussed earlier deduction under section , , 80CCC, and other deduction. Here, we’ll talk about related to medical treatment etc and deposit made for the maintenance of handicapped dependents.
Who is allowed to get deduction under section 80DD?
Any individual or can claim the deduction under section 80DD under the following conditions.
Conditions to Claim Deduction u/s 80DD
The following conditions must be satisfied to claim the deduction u/s 80DD.
1) If you have any one or more handicapped dependents and you incurred any expenditure related to his/her medical treatment, training, and rehabilitation including nursing.
2) If you have deposited amount for the benefit of a person with a disability to get insurance in the scheme of the Life Insurance Corpn or other insurance company or the Unit Trust of India.
Download Automated Income Tax Form 16 Part B for Financial Year 2018-19 & Ass Year 2019-20 [ This Excel Utility can prepare One by One Form 16 Part B for F.Y.2018-19]
Amount of Deduction
As per the provision of section 80DD the amount is allowed up to Rs.75,000 in aggregate. The deduction can be claimed up to Rs.1,25,000 if the person with severe disability.
Other Important Conditions
In case the handicapped dependent predeceases the sub-scriber assesse, the amount for which deduction has been claimed shall be deemed to be the income of the assesse for the previous year in which such amount is received.
Some Important Provisions Related to Deduction under section 80DD
- According to circular no.702 dated 3 April, 2015, the deduction is allowable in full if the conditions mentioned fulfilled.
- Individual himself
You must note here that the dependent should wholly or mainly dependent to you and has not claimed any deduction u/s 80U in the computation of his income.
If the disability is over 40% as per the Person with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 then it is treated under the section 80DD.
If the person disability is over 80% as per the Disability Act, 1995 then it is treated as Severe Disability under section 80DD.