Even though there has been a substantial improvement noticed in the healthcare management of India, medical inflation remains a matter of concern for the citizens. Especially in the case of patients suffering from ailments that require long-term treatment, like people with disabilities, the medical expenses often become difficult to tackle.
Thankfully, the Income Tax Act allows individuals to save taxes by claiming deductions under Section 80DD of the Income Tax Act. This particular section applies to the treatment of differently-abled patients. Read on to know more about it!
The eligibility parameters are pretty basic for Section 80DD of the Income Tax Act, 1961. Following are the people who can claim 80DD deduction:
Note that such deductions are available only if the dependent’s medical condition matches any of the following:
Now that you know who will be eligible for claiming an 80DD deduction, you should know the terms and conditions associated with it.
Here are some conditions one must keep in mind before claiming deductions under Section 80DD of the Income Tax Act:
Apart from meeting the above-mentioned conditions, you also need to ensure that all the necessary documents are ready with you.
Here is a list of documents you must keep handy before claiming the 80DD deduction:
If you have already met all the requirements as per the norms of Section 80DD of ITA, it’s time to know about the deduction amount available for you.
Individuals meeting the required eligibility criteria can claim these deductions:
Note that these exemptions are available to eligible patients irrespective of the main expenditure.
Also read: Section 80G of the Income Tax Act
All these facilities under Section 80DD of the Income Tax Act, 1961 seem extremely helpful for taxpayers. That said, those opting for the new tax regime have to forgo these benefits. The new tax regime updated from Financial Year 2020-21 announces that tax deductions or exemptions under specific sections of ITA, including 80DD, will not be available. However, you can still choose the old/existing tax regime and enjoy these benefits.
Ans: As per the laws of the Income Tax Act, India, you can acquire the medical certificate from the following persons and submit it to claim deductions under Section 80DD:
> A Chief Medical Officer (CMO) or a Civil Surgeon of any government hospital
> A Neurologist possessing a degree in Neurology (Doctor of Medicine degree) or a Paediatric Neurologist holding an equivalent degree for children
Ans: No, as per the norms of Section 80DD of the Income Tax Act, one can only avail of tax benefits under this provision if he/she is a resident of India. Therefore, it will not be applicable to Non-Resident Indians or NRIs.
Ans: Even though both these sections of the IT Act deal with the same aspect (tax benefits available for the medical expenditure for differently-abled patients), you cannot avail both simultaneously. Also, there is a slight difference most taxpayers fail to notice regarding Section 80DD and 80U.
The former can be claimed by a taxpayer who pays the medical expenses of a differently-abled dependent. However, the latter is claimed by individuals who themselves are differently abled.
Ans: No, this particular section of the Income Tax Act, 1961 does not apply to non-resident individuals or NRIs. To avail of tax benefits u/s 80DD, you must be a resident of India and meet the necessary eligibility criteria.
Ans: No, that will not be possible. The deductions will not be available in case you fail to submit the current disability certificate. To avail of tax benefits on the medical expenditures, you must obtain a new certificate from the medical professional.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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