Tuesday, August 30, 2016

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction for Rehabilitation of Handicapped Dependent Relative

Deduction is available on:
Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative
Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Where disability is 40% or more but less than 80% - fixed deduction of Rs 50,000.

Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,00,000.A certificate of disability is required from prescribed medical authority.

Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Certificate can be taken from a Specialist as specified.
Patients getting treated in a private hospital are not required to take the certificate from a government hospital.
Patients receiving treatment in a government hospital have to take certificate from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in General or Internal Medicine or any equivalent degree, which is recognised by the Medical Council of India.
Certificate in Form 10I is no longer required. The certificate must have - name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a Government hospital, it should also have name and address of the Government hospital.

For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000.

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