A couple of days back, an individual came to me for filing his late return who was having serious kidney problems and asked me can he claim any benefits under the Act…? Based on this case I had made some study of provisions and prepared some notes on it. Here is the descripttttion of the applicable sections in detail-
Section 80DD, 80DDB, 80U are applicable for a person with disability. Before understanding these sections lets define what disability is…???
It is defined under the “Persons with Disability Act, 1995” and the following disabilities are covered under it
- Blindness,
- Low vision,
- Leprosy – Cured,
- Hearing impairment, (impairment in any loss or abnormality of psychological, physiological or anatomical structure or function in a human being. A medical student would explain better than me but this is the definition for it)
- Mental Retardation, ( It is a generalized disorder appearing before adulthood, characterized by significantly impaired cognitive functioning and deficits in two or more adaptive behaviours)
- Mental illness,
Section 80DD –
Title = Deduction for maintenance including medical treatment of dependent disable person;
Who can claim this benefit..? A resident Individual, HUF;
For what can he claim..?
- If he has incurred an expenditure on medical treatment/training/rehabilitation of a disable dependent
AND/OR
- Paid or deposited under a scheme framed by LIC, administrator, Specified Co. for maintenance of disable dependent.
the disabled eprson Shall have disability of not less than 40%;
Who is dependent..?
- Individual – Any person wholly or mainly dependent i.e. Spouse, children, parents, brothers and sisters.
- HUF – Any person wholly or mainly dependent i.e. coparcener;
How much can he claim..?
- Rs. 50,000/- straight forward, irrespective of the amount fixed, or
- Rs.1,000,000/- where disability is more than 80%;
Any Requirements…?
A copy of certificate issued from medical authority in form 10-IA.
Section 80DDB –
Title = Deduction for medical treatment;
Who can claim this benefit..? A resident Individual, HUF;
For what can he claim..? He should have actually incurred expenses for medical treatment on himself or on dependents for specified disease/ ailment as prescribed by the board;
Who is dependent..?
- Individual – Any person wholly or mainly dependent i.e. Spouse, children, parents, brothers and sisters.
- HUF – Any person wholly or mainly dependent i.e. coparcener.
How much can he claim..?
- Rs. 40,000/- or Actual expenditure whichever is less, for non-senior citizen,
- Rs. 60,000/- or Actual expenditure whichever is less, for senior citizen.
Deduction shall be reduced by the amount received on any type of reimbursements
Any Requirements…?
A copy of certificate from a specialist working in a government hospital in form 10-I needs to be obtained. Employment in government hospital is not necessary.
Section 80U –
Title = Deduction in case of person with disability;
Who can claim this benefit..? Only to resident Individual;
For what can he claim..? He shall be suffering from disability(any of the above 7);
How much can he claim..?
- Rs. 50,000/- straight forward, irrespective of the amount fixed, or
- Rs.1,000,000/- where disability is more than 80%;
Any Requirements…?
A copy of certificate issued from medical authority in form 10-IA. Medical authority means a hospital/institution recognised by app. Government for the purpose of disability act.
Now, what`s the answer for the above individual..?
- Eligible U/s. 80DDB,
- Deduction up to 40,000/-,
- Form 10-IA needs to be obtained,
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