A Complete Guide to Claim Medical Treatment under Section 80DD

Are you or one of your family members suffering from a disability? Caring for a person having a disability involves several expenses, which require financial support to bear them. The Indian government provides you with tax benefits under Section 80DD of the Income Tax Act to help you with such expenses. This section allows you to claim a deduction on expenses incurred towards medical treatment, nursing, training, or rehabilitation of a disabled dependent. Let’s dive deep and get a complete guide on how to claim medical treatment under Section 80DD.

Who is eligible to claim under Section 80DD?

Any Indian resident can claim under Section 80DD for expenses incurred towards medical treatment, nursing, training, or rehabilitation of a dependent with a disability. The dependent may be your spouse, children, siblings, or parents, and must have a minimum 40% disability. However, the following are not eligible to claim under section 80DD:

1. A claim on behalf of an individual who is not a resident of India.
2. A claim on behalf of a disabled dependent who has claimed any deduction for the same treatment under Section 80U.

What expenses can be claimed for a deduction under Section 80DD?

You can claim a deduction under Section 80DD for the following expenses incurred towards dependent with a disability:

1. Expenses incurred on medical treatment.
2. Expenses incurred on nursing and training.
3. Expenses incurred on rehabilitation or medical procedures to improve the dependent’s health condition.
4. Expenses incurred on buying health-related equipment.

How much deduction can be claimed?

The maximum deduction that can be claimed under Section 80DD is Rs. 75,000. However, if the disabled dependent’s disability is severe in nature, then the maximum limit is extended to Rs. 1,25,000. The severity of the disability is determined based on the following criteria:

1. If the dependent has a disability ranging from 40% to 79%, then a deduction of Rs. 75,000 can be claimed.
2. If the dependent has a disability of 80% or more, then a deduction of Rs. 1,25,000 can be claimed.

How to claim the deduction under Section 80DD?

To claim the deduction under Section 80DD, you need to follow these steps:

1. Make sure that your dependent has been certified disabled by a medical authority. The certificate must state the nature and degree of disability in it.
2. Fill up the correct ITR form for the assessment year.
3. Provide the details of the dependent and the disability, along with the amount spent on medical treatment and other expenses in the ITR form.
4. Submit the appropriate proof of expenses incurred along with the ITR form. The proof required may include medical bills, reports, receipts, certification, etc.

Conclusion

Section 80DD of the Income Tax Act is a boon for taxpayers with disabled dependents. The deductions provided by this section helps to ease the financial burden of bearing expenses related to the treatment, rehabilitation, or care of disabled dependents. It is essential to comply with the conditions and procedures required to claim the deductions. By following the steps mentioned above, you can claim your deductions easily and effectively. We hope this guide has shed light on all your queries on how to claim medical treatment under Section 80DD.

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