Caring for a Disabled Dependent? Claim Tax Rebate under Section 80DD

We recently published an article about Section 80U, under which persons with disabilities can claim tax benefits. However, not many people are aware that if they are caring for a dependent disabled person, they too can claim tax benefit under the Section 80DD of the Income Tax Act. Treatment and management of disabling condition of a dependent person can put extra strain on your budget plans. Therefore, it is appropriate for the government to provide tax rebate on such expenses.

But before we talk about Section 80DD, we would highly recommend that you look at the health insurance schemes available for persons with disabilities. Rising costs of healthcare in the country are really worrisome. So, it is very important to properly do financial planning, especially if you have a dependent disabled person.

Now, that it is almost the time to file you income tax return, let’s talk about the rebate available.

Who is Eligible to Get Deduction under Section 80DD?

• Any individual or HUF (Hindu Undivided Family) who has a dependent person with disability is eligible to claim this deduction
• Tax deduction under Section 80DD is not available to NRIs (Non-Resident Individual)

Who will be Considered “Dependent Disabled”?

For the purpose of deduction under Section 80DD, the following relations can be treated as dependent:

• For individuals tax payer, a disabled dependent can be
  • Spouse
  • Son/daughter
  • Parents
  • Brother/sister
• For HUFs tax payers, a disabled dependent can be any member of the HUF

What Types of Disabilities are Covered under Section 80DD?

The RPWD Act 2016 is now in force. In this Act, the number of recognized types of disabilities has been been increased to 21.

• Victims of acid attacks have been included in the list of persons with disabilities. Unfortunately, in India, acid attacks have been on the rise in last few years. Girls and women are often left severely disfigured/disabled due to such attacks.
• Dwarfism and Muscular Dystrophy have also been included as separate categories of disability.
• Three blood disorders, Thalassemia, Hemophilia and Sickle Cell disease, have been included in the list of disabilities.

How much Deduction is Available under Section 80DD?

• If the dependent disabled has disability between 40% to 79%, you will be allowed a deduction of Rs. 75,000
• If the dependent disabled has 80% or above disability, the deduction amount is Rs. 1,25,000

What documents are Required to Claim Deduction under Section 80DD?

Following documents are required to claim tax rebate for caring for a dependent disabled person:

• Disability Certificate: issued by the Chief District Medical Officer or a board constituted by a government hospital
• Form 10-IA: If the dependent is affected with Autism, Cerebral Palsy or Multiple Disabilities, you will need to fill the form number 10-IA and get it signed by your doctor. Download Form 10-IA
• Self-declaration: You need to self-declare the expenses you made on the dependent disabled. This would be the amount for which you want the deduction to be made.
• Insurance premium receipts: If you are paying premium for any insurance policy taken in the name of dependent disabled person, you can use these premium receipts as a proof of expense on the dependent disabled person.

If you have any questions on this subject please feel free to ask in the comments section. We will try our best to assist you. Thank you for connecting with WeCapable!