Income Tax Deductions in case of a Special Needs Child



1) Income Tax Act, Section 80U – Deduction in case of a person with a disability

Who can claim the benefit: Individual who is resident during the previous year and is certified by the Medical Authority to be a person with Disability.

The deduction allowed: In the case of Person with Disability (at least 40%) Rs 75,000 /- is allowed. In the case of Person with Severe Disability (80% of one or more disabilities) Rs. 1,25,000/- is allowed.

2) Section 80DD – Deduction in respect of maintenance including medical treatment of a dependant who is a person with a disability

Who can claim the benefit: Individual or Hindu Undivided Family (HUF) who is resident during the previous year, and has incurred expenditure in relation to maintenance or treatment of depended disable or has invested in a particular scheme of LIC for benefit of the depended disable.

Deduction allowed:

A) Rs 75,000/- for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with a disability. Or Rs 1,25,000/- for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with Severe disability having medical certificate granted by prescribed Medical Authority

B) Any amount paid or deposited under a scheme framed by the Life Insurance Corporation or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability or person with Severe disability (subject to overall limit of Rs 75,000/- or 1,25,000/- as applicable)

3) Section 80DDB Deduction in respect of medical treatment, etc

Who can claim the benefit: Individual or Hindu Undivided Family (HUF) who is resident during the previous year, and has paid any amount for the medical treatment of such disease or ailment, for himself or dependent in case of an individual or any member of HUF in case of HUF

The deduction allowed: Rs 40,000/- deduction shall be allowed or the amount actually paid, whichever is less. In case any of the above is a senior citizen (60 years or more), an additional deduction of Rs. 20,000 shall be allowed towards payment of the senior citizen. i.e. in the case of senior citizens, the above limit of 40,000 shall be upgraded to Rs.60000 (wef from A.Y 2019-20 this amount has been increased to Rs 1,00,000). For super senior citizens (80 years or more) the amount of deduction shall be Rs 80,000 from A.Y 2016-17 to 2018-19. However, from A.Y 2019-20 this limit has been increased to Rs 1,00,000.




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