Section 80DD:Deduction in respect of medical treatment of a dependant disabled
Section 80DD provides deduction to an assessee, who is
- A resident in India, being an individual
- Hindu undivided family.
Payment qualifying for deduction:
- Any amount incurred for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability, or paid or deposited under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator for the maintenance of a dependant, being a person with disability qualifies for deduction.
- The scheme should provide for payment of annuity or a lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or member of the HUF, in whose name subscription was made and the assessee must nominate either the dependant, being a person with disability or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.
- The benefit of deduction under this section is also available to assessees incurring expenditure on maintenance including medical treatment of persons suffering from autism, cerebral palsy and multiple disabilities.
Quantum of deduction:
The quantum of deduction is Rs.75,000 and in case of severe disability (i.e. person with 80% or more disability) the deduction shall be Rs.1,25,000.
- For claiming the deduction, the assessee shall have to furnish a copy of the certificate issued by the medical authority under the Persons with Disability along with the return of income under section 139.
- Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned in the original certificate in order to continue to claim the deduction.
- If the dependant, being a person with disability, predeceases the individual or the member of HUF, in whose name subscription was made, then the amount paid or deposited under the said scheme would be chargeable to tax in the hands of the assessee in the previous year in which such amount is received by the assessee.