The income tax rules in India have various provisions prescribed for tax deductions for the disabled persons. These rules are prescribed under section 80DD, 80 DDB and 80U of the Income Tax Act and the Profession Tax Act. Most states of India accept these exemptions for the persons suffering from a permanent disability.
Section 80DD:
This section prescribes deduction claims to be made against the expenses in a maintenance or medical treatment of disabled dependents during income tax return filing. The dependents include family members only such as spouse, children, parents and siblings. And also the Section 80DD deduction can be claimed only if no other deduction has been claimed under the other two sections. The severity of the disability prescribed in the income tax rules to claim these deductions is 40-80%. The amount allowed is up to Rs 75,000, however, for over 80% severity, it goes up to Rs 1.25 lakhs. You can claim the full deduction even if your expenses are less than that.
Section 80DDB:
This section allows a deduction on the treatment expenses incurred for various diseases on income tax return filing. The severity must be 40% or above to claim these deductions and have to be one of the prescribed diseases. The prescribed diseases include Dementia, Motor Neuron Disease, Dystonia Musculorum Deformans, Chorea, Ataxia, Hemiballismus, Parkinson’s Disease, Aphasia, Malignant Cancers, Acquired Immuno Deficiency Syndrome (AIDS), Chronic Renal failure, Hemophilia and Thalassaemia. The deductions under income tax rules for these diseases are prescribed between Rs 40,000 to Rs 80,000 according to the age and income tax slab.
Section 80U:
In section 80U, the deductions are prescribed for the disabled person himself/herself. The deduction is applied if the severity is above 40% and the amount allowed is Rs 75,000 per financial year. If disability is over 80% severity than the amount of exemption will be up to Rs.125,000 during income tax return filing. In this section, the qualified disabilities are blindness, low vision, hearing impairment, leprosy-cured, mental retardation, locomotor disability and mental illness. The person doesn’t need to produce expense related documents but a medical certificate authenticating the disability is required to claim deduction under this section as prescribed in the income tax rules.
Also Read : Expenses That Saves Your Tax Payments
Section 80DD:
This section prescribes deduction claims to be made against the expenses in a maintenance or medical treatment of disabled dependents during income tax return filing. The dependents include family members only such as spouse, children, parents and siblings. And also the Section 80DD deduction can be claimed only if no other deduction has been claimed under the other two sections. The severity of the disability prescribed in the income tax rules to claim these deductions is 40-80%. The amount allowed is up to Rs 75,000, however, for over 80% severity, it goes up to Rs 1.25 lakhs. You can claim the full deduction even if your expenses are less than that.
Section 80DDB:
This section allows a deduction on the treatment expenses incurred for various diseases on income tax return filing. The severity must be 40% or above to claim these deductions and have to be one of the prescribed diseases. The prescribed diseases include Dementia, Motor Neuron Disease, Dystonia Musculorum Deformans, Chorea, Ataxia, Hemiballismus, Parkinson’s Disease, Aphasia, Malignant Cancers, Acquired Immuno Deficiency Syndrome (AIDS), Chronic Renal failure, Hemophilia and Thalassaemia. The deductions under income tax rules for these diseases are prescribed between Rs 40,000 to Rs 80,000 according to the age and income tax slab.
Section 80U:
In section 80U, the deductions are prescribed for the disabled person himself/herself. The deduction is applied if the severity is above 40% and the amount allowed is Rs 75,000 per financial year. If disability is over 80% severity than the amount of exemption will be up to Rs.125,000 during income tax return filing. In this section, the qualified disabilities are blindness, low vision, hearing impairment, leprosy-cured, mental retardation, locomotor disability and mental illness. The person doesn’t need to produce expense related documents but a medical certificate authenticating the disability is required to claim deduction under this section as prescribed in the income tax rules.
Also Read : Expenses That Saves Your Tax Payments
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