(1) For the purposes of clause (e) of the Explanation to sub-section (4) of section 80DD and clause (d) of the Explanation to sub-section (2) of section 80U, the medical authority for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999), shall consist of the following,—
(i) a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Paediatric Neurologist having an equivalent degree); or
(ii) a Civil Surgeon or Chief Medical Officer in a Government hospital.
(2) For the purposes of sub-section (4) of section 80DD and sub-section (2) of section 80U, the assessee shall furnish along with the return of income, a copy of the certificate issued by the medical authority,—
(i) in Form No. 10-IA, where the person with disability or severe disability is suffering from autism, cerebral palsy or multiple disability; or
(ii) in the form prescribed vide notification No. 16-18/97-NI.1, dated the 1st June, 2001 published in the Gazette of India, Part I, Section 1, dated the 13th June, 2001 and Notification No. 16-18/97-NI.1, dated the 18th February, 2002 published in the Gazette of India, Part I, Section 1, dated the 27th February, 2002 and notified under the Guidelines for evaluation of various disabilities and procedure for certification, keeping in view the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), in any other case.
(3) Where the condition of disability is temporary and requires reassessment after a specified period, the certificate shall be valid for the period starting from the assessment year relevant to the previous year during which the certificate was issued and ending with the assessment year relevant to the previous year during which the validity of the certificate expires.
Section 80DD: Deduction for Medical Disability of a dependent Family Member
If a person incurs any expenditure on medical treatment of a dependent
family member with Medical Disability, he would be allowed to claim
*deduction under Section 80DD*.
Deduction under Section 80DD would also be allowed in case the person
has paid or deposited any amount with specified insurers as insurance
premium for the maintenance of a dependent person with medical disability.
The deduction allowed is as follows:
Category Deduction Allowed
(a person with 40% or more of one or more disability) Rs. 50,000 p.a.
(a person with 80% or more of one or more disability) Rs. 1,00,000 p.a.
The term dependent means:-
In case of Individual Spouse, Children, Parents, Brothers or Sisters
In case of HUF Any member of the HUF
The Income Tax Authorities have clarified that even if any amount of
expense is incurred to medical treatment/ insurance premium paid, full
deduction would be allowed as specified above irrespective of the amount
of expense incurred/paid as insurance premium. (Refer: Circular No. 702
and Circular No. 775 dated 26-03-1999
It is be noted that in case the dependent dies before the death of the
individual and any amount is paid by the insurance company to the
individual, such amount received would be taxable in the hands of the
individual in the year in which such amount is received and would be
taxable as per the income tax slabs of that year.
Disabilities specified under Section 80DD and Section 80U
Deductions for Several Disabilities have been allowed under /Section
80DD and Section 80U by the Income Tax Authorities/. A few of the
approved disabilities have been mentioned hereunder for ready reference:-
* Low Vision
* Hearing Impairment
* Loco Motor Disability
* Mental Retardation