If you are having a handicapped dependent and you are incurring expenses on his/her maintenance or medical treatment then you could save tax by claiming deduction u/s 80DD. Conditions to be satisfied:
- Assessee being an Individual or HUF, resident in India is entitled to deduction.
- Disabled person should be wholly or mainly dependent on the person seeking the deduction for their support and maintenance.
- Disabled dependent should have a disability of at least 40%.
- Disability includes Blindness, Low Vision, Leprosy-cured, Hearing impairment, Locomotor disability, Mental retardation or mental illness.
- Disabled person has not claimed any deduction u/s 80U in computing his total income for the assessment year relating to the previous year.
- Assessee opted for any (or both) of the following options-
- Incurred an expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent (being a person with disability); or
- Deposited or paid under any scheme framed in this behalf by the LIC or any other insurer, or the administrator or specified company and approved by the Board in this behalf, for maintenance of dependent (being a person with disability).
- Obtain copy of the disability certificate as issued by the central or state government medical board to claim deduction as the same has to be furnished when the Assessing Officer ask for.
Quantum of Deduction Fixed deduction of Rs. 50,000/-, irrespective of the amount incurred or deposited. Higher deduction of Rs. 1,00,000/-, where such dependent is a person with severe disability having any disability of 80% or above. Taxmantra.com provides full fledged comprehensive tax planning service wherein we suggest the best investment and tax saving plans, which would minimize your total tax on income.