The Ultimate Guide to Claiming 80DD Medical Treatment Expenses
Living with a disability comes with its own set of challenges, both physical and financial. The government of India has taken steps to recognize the challenges faced by those living with disabilities and has offered various schemes and benefits. One such benefit is the tax exemption provided under section 80DD of the Income Tax Act, 1961. This section provides tax relief on medical expenses incurred by a taxpayer for the treatment of a dependant with a disability. In this article, we will provide you with a comprehensive guide to claiming 80DD medical treatment expenses.
What is Section 80DD and What Are the Eligibility Criteria?
Section 80DD is applicable to individuals and Hindu Undivided Families (HUFs) who have incurred expenses for the medical treatment of dependants with a disability. The definition of disability under this section includes mental retardation and autism. To be eligible for the tax exemption, the dependant must be:
- A spouse, children, parents or siblings of the taxpayer,
- Wholly and mainly dependent on the taxpayer for support and maintenance, and
- A person with at least 40% disability.
It’s essential to note that the taxpayer must provide a disability certificate issued by a competent medical authority as proof of the dependent’s disability.
What Expenses Can Be Claimed Under Section 80DD?
Section 80DD provides for the deduction of medical treatment expenses incurred for a dependant’s disability. This deduction is provided up to a maximum limit of INR 75,000 per financial year. The limit is raised to INR 1,25,000 if the dependant has a severe disability, i.e., 80% or more disability.
The medical treatment expenses that can be claimed under this section include:
- The amount paid for medical treatment, including nursing and rehabilitation of the dependant with a disability.
- The amount paid for the training and rehabilitation of the dependant with a disability.
- The amount paid towards health insurance premiums for health insurance policies taken in the name of the dependant with a disability.
It’s important to note that the expenses claimed under this section must have been made in India. Any expenses incurred outside India cannot be claimed under this section.
How to Claim the Deduction Under Section 80DD?
The taxpayer must file their income tax returns and claim the deduction under section 80DD while doing so. They must provide the relevant details of the medical expenses incurred for the treatment of their disabled dependant, along with the disability certificate issued by a competent medical authority. It’s essential to keep all relevant receipts and documents safe as they may have to be produced as proof during assessment or any other proceeding.
Conclusion
Section 80DD provides tax relief for individuals and HUFs who incur medical treatment expenses for their dependants with a disability. The dependant must have a disability certificate issued by a competent medical authority, and the expenses must have been incurred in India. Taxpayers can claim a maximum deduction of INR 75,000 per financial year and INR 1,25,000 if the dependant has a severe disability. Claiming this deduction can help ease the financial burden of medical expenses and provide some relief to taxpayers.
