The Deduction For Education Loan Is Deductible Under Which Section?


The Deduction For Education Loan Is Deductible Under Which Section
3. For how long can you claim the deductions under Section 80E? – You can claim the deduction under Section 80E right from the year you start repaying the loan. The deduction can be availed only for eight years from the year when you start repaying or until you have fully repaid your interest, whichever happens, earlier.

COMP/DOC/Sep/2020/169/4454 ICICI Pru iProtect Smart UIN: 105N151V06 ICICI Pru Heart/Cancer Protect UIN: 105N154V03 ICICI Pru LifeTime Classic UIN: 105L155V07 ICICI Pru Smart Life UIN: 105L145V07 1 The education industry in India is reportedly estimated to reach US$ 144 billion by 2020 – Source:

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How do I claim deductions on my 80DD?

Documents required to claim exemption under section 80DD –

Medical Certificate You must produce a medical certificate that authenticates the caretaker and dependent relationship along with specific mention of the disability. This certificate must be certified by a ‘medical authority’. Make sure the medical certificate is updated. Who is Medical Authority? Those who are eligible to authenticate the medical certificate include:

Civil Surgeon or Chief Medical Officer of a government-run hospital. Neurology expert with an MD in Neurology Paediatric Neurologist with an equivalent degree

Form 10-IA To claim deduction under Section 80DD for disabilities like autism, cerebral palsy and multiple disabilities, you will need to submit Form 10IA. The Form also mentions the nature of the disability and if a reassessment is recommended. This Form must be certified and signed by the medical authority. Who is authorized to certify Form 10-IA?

Civil Surgeon or Chief Medical Officer of a Government run hospital. Neurology expert with an MD in Neurology Paediatric Neurologist with an equivalent degree

Self-declaration Certificate You must provide a self-declaration certificate on the costs you incurred in the medical treatment of the disabled dependent. Receipts of Insurance Premium To claim deduction on insurance premium, you must produce the receipts of premium paid. For all other costs of treatment and rehabilitation, the self-declaration certificate should suffice.

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What are the deductions under section 80?

Section 80CCD – Deduction of contribution to pension scheme of central government – Deduction under Section 80CCD is allowed to an individual who makes deposits to his/her pension account.The maximum deduction is allowed to 10% of the salary (in the case of salaried individuals) and 20% of gross total income (in the case of self-employed individuals) or ` 1,50,000- whichever is less.

  • Under Sub-section1B, an additional deduction of upto ` 50,0000 is available for contributions towards NPS by individuals.
  • Maximum Deduction: ` 2,00,000 * *The maximum deduction provided here is for the particular section only.
  • Please also note that, cumulatively, the maximum deduction that can be claimed under Section 80C, Section 80CC and 80CCD(1) is ` 1,50,000.

Above this, an additional ` 50,000 can be claimed as a tax deduction for investment in NPS account under Section 80CCD(1B) Both the sections mentioned above are tied with pension plans and annuity plans. But there is a difference between the two. While Section 80CCC covers the deduction for the amount paid towards the annuity plan of any insurer, Section 80CCD provides a deduction for the amount contributed to pension schemes : NPS and Atal Pension Yojana.
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What is under Section 80C of Income Tax Act?

Infrastructure Bonds –

Section 80C of the Income Tax Act allows tax exemptions on infrastructure bonds, provided the investment is equal to or higher than Rs.20,000. The limit of Rs.1.5 lakh stays applicable for these long-term secured bonds as well.

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    What is 80C vs 80D?

    Difference between Section 80D and Section 80C – A lot of people remain confused between Section 80D and Section 80C. Here are the basic differences between Section 80C and Section 80D deductions:

    Categories Section 80C Section 80D
    Meaning Section 80C offers tax deductions on different types of tax-saving investments, such as ULIP, PPF, ELSS, EPF, LIC premium, etc. Section 80D deduction is allowed for availing tax exemptions on health insurance premiums paid for self, family, & parents and expenses incurred on preventive health check-ups.
    Maximum Tax Deduction Limit Up to Rs 1.5 lakh Up to Rs 1 lakh
    Scope of Tax Benefits Higher tax benefits Lower tax benefits

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    What is difference between 80DD and 80DDB?

    What are the differences in deduction amounts for Section 80DD, Section 80DDB and Section 80U? – The amount that you can claim as deduction under sections 80DD, 80DDB and 80U vary under the rules specified by the Income Tax Act, 1961. The following are the maximum deduction available for FY 2019-20:

    Income Tax Act Section Maximum Deduction Available for FY
    Section 80 DD Rs.1.25 lakh (severe disability)/Rs.75,000 (non-severe disability).
    Section 80 DDB Rs.100,000 for senior citizens aged 60 years or more/Rs.40,000 for citizens aged less than 60 years.
    Section 80 U Rs.1.25 lakh (severe disability) /Rs.75,000 (non-severe disability).

    You should however keep in mind that you have to claim the deduction u/s 80DDB on the basis of actual expenses incurred. So, if your actual treatment expenses are lower than the amount specified as per the section, your tax deduction will be limited to the actual expense incurred in this case.

    On the other hand, in case of Section 80DD and Section 80U, the deduction can be obtained irrespective of the actual expense incurred as long as a valid disability certificate is available from a competent medical authority such as a neurologist, urologist, oncologist, immunologist, haematologist, etc.

    🎓 Student Loan Interest Deduction 🎓

    Additionally, disability needs to be at least 40% as per certifying authority in order to get the benefits under Section 80DD and Section 80U, while this is not applicable when claiming deduction u/s 80DDB. Abhishek Chakravarti is a Content Marketer working with After his day job, he is known to stay up long into the night trying to figure out how the previous day could have been lived in a different way. When not providing financial advice to others, he has been known to sneak a few peeks at the newest copies of various financial magazines to stay updated and inspired.
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    Who is eligible for 80DD?

    The disabilities which qualify for tax benefits under Section 80DD of the Income Tax Act include blindness, loco motor disability, low vision, mental illness, mental retardation, leprosy-cured, hearing impairment, cerebral palsy and autism.
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    What are Section 16 deductions?

    A deduction from the income subject to tax under head salaries is offered under Section 16. It provides deduction for professional taxes, entertainment expenses, and the standard deduction. A salaried worker who pays taxes could use this deduction to reduce the amount of taxable salary income that is subject to tax.

      ₹50,000 (from AY 2020 – 21 onwards) Your salary amount You can claim this deduction as an exemption regardless of your actual spending. The government introduced this benefit in place of Transport allowance Medical allowance

    2.Deduction for entertainment allowance under Income Tax Section 16(ii) In the case of entertainment allowance, the assessee is entitled to a deduction under Section 16, although he is ineligible for any exemptions (ii). Due to the inclusion of the entire entertainment allowance in the gross income calculation, the government employee is then qualified to receive a deduction from gross salary.

    The standard deduction is also available for the pensioners, according to the new guidelines of CBDT clarifying the applicability of the standard deduction of the pensioners. The pension received by the employer will be headed under the head of ‘salaries’.3. Deduction for professional tax paid on salary income under Section 16 (iii) Certified Tax based on Section 16 The deduction for employment tax is allowed by Section 16(iii) of the Income Tax Act.

    A taxpayer may deduct the sum paid on account of an employment tax or professional tax under section 16. The employment tax is described in this case by Article 276(2) of the Constitution. The state cannot charge more than ₹2500 per year as professional tax.
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    How do I deduct under 80D?

    What is a preventive health check-up under 80D? – The government introduced preventive health checkup deduction in 2013-14 to encourage citizens from being more proactive towards health. The idea of preventive health check-ups is to identify any illness and mitigate risk factors at an early stage through frequent health checkups.

    1. Section 80D includes a deduction of Rs 5,000 for any payments made towards preventive health check-ups.
    2. This deduction will be within the overall limit of Rs 25,000/Rs 50,000, as the case may be.
    3. This deduction can also be claimed either by the individual for himself, spouse, dependent children or parents.

    The payment for preventive health check-ups can be made in cash. Invest in Direct Mutual Funds Save taxes upto Rs 46,800, 0% commission For Example: Rahul has paid a health insurance premium of Rs 23,000 for the insurance of the health of his wife and dependent children in the financial year 2020-21. He also got a health check-up done for himself and paid Rs 5,000.
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    Can I claim both 80C and 80CCC?

    Can I Claim Deductions Under Both Sections? – As a taxpayer, you can claim deductions under both Section 80C and 80CCC, but the total deduction for both cannot exceed INR 1, 50,000. You can always check your tax calculations with an accountant to ensure you have paid all your taxes and do not attract any fines or defaults.
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    Is 80C and 80CCC same?

    The main difference between Section 80C and Section 80CCC of the Income Tax Act of 1961 is that under Section 80C, the amount to be paid may come from income that is not chargeable to tax. While under Section 80CCC the funds must be paid out the income that is chargeable to tax.
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    Can I claim both 80CCD 1B and 80CCD 2?

    2. Benefits of Section 80CCD – 80CCD(1), 80CCD(2), 80CCC and 80C –

    Section Description Maximum Deduction
    80C Tax-saving instruments and investments Up to ₹ 1,50,000*
    80CCC Contributions to annuity and retirement plans
    80CCD(1) Employee contributions to NPS/ Atal Pension Yojana up to 10% of salary + dearness allowance
    80CCD(2) Employer contributions to NPS/Atal Pension Yojana Up to 10% of Basic + + Dearness Allowance
    80CCD(1B) Self-contributions to NPS and Atal Pension Yojana above the Section 80CCD(1) limit Up to ₹ 50,000*

    The limit of ₹1,50,000 deduction is inclusive of Section 80C, 80CCC and 80CCD(1) deductions. This means that a maximum of ₹ 1,50,000 can be claimed under all three sections combined. Section 80CCD(1B) deduction of up to₹ 50,000 is over and above this limit. Therefore, under Sections 80C, 80CCC, 80CCD(1) and 80CCD(1B), a maximum deduction of ₹ 2,00,000 can be claimed.
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    Can I claim 80C during ITR filing?

    Claim deductions under Section 80C with no investments – Section 80C allows you to reduce Rs 1,50,000 from your, You can view the entire list of deductions allowed under Section 80C, If you were not able to submit the details of your Section 80C deductions to your employer timely, you can claim them in your income tax return.

    You can claim them during return filing, even though they don’t appear on your Form 16 since you could not intimate your employer. Or you may have made those investments after the last date given by the employer for proof submission (but you make investments for deductions before 31st March of the financial year).

    Say you made some investments to claim Section 80C deduction – deposits to PPF paid life insurance premium or purchased NSCs. You can easily claim them while, Have the required details ready with you for e-filing and claim them. You will notice that not all of the listed deductions require investment.
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    Can I claim both 80D and 80DD?

    Living through the pandemic has taught us the importance of having the right amount of insurance. It is a known fact that buying health insurance for your family, dependent children and parents can help you save tax under section 80D of the Income-tax Act, 1961.

    • You can save tax up to a maximum of Rs 1 lakh per financial year if you, your family members and your parents both are above the age of 60 years by paying health insurance premium.
    • However, if you can’t afford to pay for health insurance premium or unable to buy one due to pre-existing conditions, then also you can save tax via medical expenditures.

    Before you read any further, there is one thing you need to know. From FY 2020-21, an individual can continue with the old/existing tax regime by availing of existing deductions and tax exemptions. He/she also has the option to opt for the new, concessional tax regime without claiming any deductions and tax exemptions.

    The tax benefits one forgoes by opting for the new tax regime include deductions under: section 80C for a maximum of Rs 1.5 lakh claimed by investing in specified financial products, section 80D for health insurance premium paid, 80TTA for deduction on savings account interest earned from a bank or post office, benefit under 80DDB etc.

    (New vs existing tax regime: All you need to know) Therefore, if you opt for the new tax regime infor the current FY 2021-22, then you will not be able claim the below-mentioned deductions. Here’s what you need to know about saving taxes via medical expenses under the old tax regime.

    Under Section 80D

    Section 80D of the Income-tax Act allows you to save tax by claiming medical expenditures incurred as a deduction from income before levy of tax. You can claim this deduction if these two conditions are satisfied: a) The medical expenditure must be incurred either on self, spouse or dependent children or/and parents.

    1. Also, the person for whom the medical expenditure is incurred must be 60 years and above.
    2. Therefore, in most cases people would be able to claim this only for self/spouse and/or parents as dependent children are less likely to be in the 60+ age bracket.
    3. B) The person on whom medical expenditure has been incurred should not be covered under any health insurance policy.

    If these two conditions are satisfied, then one can claim a maximum deduction of Rs 50,000 in a financial year for the expenditure incurred. To claim this deduction, all the medical expenditure must be paid in any other mode other than cash. This means that all payments for medical expenses must be done via banking channels such as credit card, debit card, and Net-baking or digital channels such as mobile wallets, UPI and so on.

    • Also Read: Use medical bills of parents over 60 to save tax However, one should not get confused between the terms expenditure on preventive health check-up and medical expenditure.
    • Expenditure on preventive health check-up can be done via cash and maximum deduction that can be claimed is Rs 5,000 irrespective of the person’s age.

    On the other hand, medical expenditure must be done either on self/family members (as defined under law) and/or parents who are aged 60 years and above for the treatment of diseases or ailments. Also Read: How diagonstic centre can help you save tax All about deduction for medical expenditure

    Family members/parents below 60 years Family members/parents above 60 years
    Section 80D Not allowed Rs 50,000
    Section 80DDB Rs 40,000 Rs 1 lakh
    Section 80DD/80U* Rs 75,000 or Rs 1.25 lakh (depending on disability percentage) Rs 75,000 or Rs 1.25 lakh (depending on disability percentage)

    Deduction under section 80DD and 80U does not take age into consideration

    Under section 80DDB

    Deduction under section 80DDB can be claimed only for the expenditure done for treatment of illness specified under this section of the Income-tax Act. The amount of deduction that can be claimed depends on the age of the person on whom the expenditure has been incurred.

    1. The deduction can be claimed for self or a dependant.
    2. However, if it is being claimed for a dependant, then the person should be completely dependent on the individual claiming the deduction.
    3. If the person on whom expenditure has been incurred, is below the age of 60 years then a maximum deduction of Rs 40,000 can be claimed.

    On the other hand, if the age of the person is 60 years and above, then in that case the maximum deduction that can be claimed is Rs 1 lakh. This deduction can be claimed irrespective of whether the person is covered under any health insurance policy or not.

    Section 80DD and section 80U

    Sections 80DD and 80U deals with the tax-saving deduction that can be claimed for the medical expenditure incurred for disabled persons. Under these sections, deduction can be claimed by a person for himself/herself or for a dependent person who is differently abled.

    1. The law defines dependent person as spouse, children, parents, brothers and the sisters of the individual.
    2. For both sections, the amount that can be claimed as deduction does not depend on the age of the person.
    3. It depends on the percentage of disability of the person.
    4. If the disability is more than 40 per cent but less than 80 per cent, then in that case a deduction of Rs 75,000 will be allowed.

    On the other hand, the deduction of Rs 1.25 lakh will be allowed if the percentage of disability is 80 per cent or more. This deduction is fixed irrespective of the actual expenses. However, remember both these deductions cannot be claimed simultaneously.

    • Section 80DD: The deduction can be claimed for the expenditure incurred on the medical treatment (including nursing), training and rehabilitation of a person with disability.
    • The deduction is claimed from total income of the claimant before levy of tax thereby reducing the total tax payable.
    • The deduction can also be claimed if the individual has paid for/deposited money under any scheme of the Life Insurance Corporation (LIC) or any other insurer or the administrator or the specified company for the maintenance of the disabled dependant.

    The scheme in which the money has been deposited should provide annuity payment or lump sum amount for the benefit of the dependent suffering from disability, in the event of death of the individual. The individual can also nominate the dependent person suffering with disability or any other person or a trust to receive payment on his behalf.

    • Budget 2022 has proposed to introduce a new tax benefit for the parent/guardian of a disabled person.
    • As per the proposal, if a parent/guardian of a disabled person buys a savings life insurance policy with the latter as beneficiary then the parent/guardian would be eligible to claim deduction from gross total income.

    This tax benefit can be claimed even in cases where the buyer of the policy, i.e., parent/guardian, is still alive. Also Read: Budget introduces new tax benefit for parents of disabled Section 80U: On the other hand, Section 80U provides deduction if the individual himself/herself is suffering from the disability.
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    How many exemptions can I claim 80D?

    What deductions are allowed u/s 80D? –

    1. Money spent as premium for health insurance policy
    2. Money spent on healthcare of family members including parents

    Money spent on maintaining a health insurance policy can be claimed under section 80D. The amount is limited by the age of the insured under the plan. These restrictions apply to people (insured under the policy) aged below 80 years :

    Insured Deduction Amt. ( ` )
    Age Below 60 yrs. Age Above 60 yrs.
    Self, Spouse and Children 25,000 50,000
    Parents 25,000 50,000
    Max Deduction 50,000 1,00,000
    Opt: Preventive Healthcare * 5,000 5,000

    Table 1: Medical Deduction u/s 80D In the case of people over 80 years of age, health insurance is usually not available. Thus, the deduction of upto `5 0,000 is allowed even if money is spent on their treatment rather than on health insurance premium. Therefore, a maximum deduction that you can claim under this section is upto ` 55,000, assuming:

    1. Your family falls in ‘below-60 age group’ (max deduction of 25,000),
    2. Your parents are aged above 60 years (max deduction of 50,000) and

    * Preventive Healthcare Expenses: If your total insurance premium paid is less than the maximum allowed limits for any of the categories, then up to ` 5000 can be claimed for a preventive health check of your family in the financial year, within the said limits.

    1. Premium paid on and expense incurred towards preventive health checkup can be claimed as a deduction under Section 80D.
    2. Individual and Hindu Undivided Family (HUF) can claim deduction from taxable income under Section 80D.
    3. A person can claim a deduction for the health insurance premium and expense incurred towards preventive health checkup for self, spouse, dependent children and parents.

    This is-subject to the terms and conditions mentioned in the Section 80D of the Income Tax Act, 1961. For a person aged below 60 years, the limit for deduction under Section 80D is upto ` 25,000. The limit of ` 25,000 includes ` 5,000 on preventive health checkup.

    Case I – Self below 60 years & parents below 60 years Case II – Self below 60 years & parents above 60 years Case III – Self above 60 years & parents above 60 years
    Deduction* for self, spouse and dependent children ` 25,000 ` 25,000 ` 50,000
    Deduction* for parents ` 25,000 ` 50,000 ` 50,000
    Maximum deduction ` 50,000 ` 75,000 ` 100,000

    Deduction = health insurance premium and preventive health checkup expense A deduction under Section 80D cannot be claimed

    1. i. If payment for health insurance premium is done by cash. Payment for the medical expense can be made by cash.
    2. ii. If payment is made on behalf of working children, siblings, grandparents or any other relative
    3. iii. Group health insurance premium made by the company on behalf of the employee

    Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns.

    Funds do not offer guaranteed or assured returns. Tax benefits under the policy are subject to conditions under Section 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. The tax laws are subject to amendments from time to time.

    Please consult your tax advisor for details.

    • ICICI Pru iProtect Smart (UIN: 105N151V06), ICICI Pru Heart/Cancer (UIN: 105N154V03)
    • W/II/1088/2016-17
    • COMP/DOC/Aug/2020/278/4332

    : Section 80D – Deductions for Medical & Health Insurance
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    Can I claim 80D while filing ITR?

    Can medical expenses be claimed under 80D? – Yes. Under section 80D, it allows the policyholder to save tax by claiming medical insurance incurred on self, spouse, dependent parents as a deduction from income before paying the taxes. The person’s age should be 60 years or above to be eligible to claim the medical expenses.
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    What is the maximum limit under section 80E?

    Section 80E of Income Tax Act The education industry in India is reportedly estimated to reach US$ 144 billion by 2020 1, The sector has constantly managed to push the importance of pursuing basic and higher education for economic development. Demographically India has the advantage of having one of the largest youth populations, coupled with widespread educational institutes and schools, and hence educational expenses naturally become one of the liabilities one has to account for.

    With the growth of the Indian economy and rise in income levels, the spending on education has increased too, that accounts for the second-highest share of wallets for middle-class households in the country. The spending for pursuing education can let you save on income taxes *, You can claim a deduction of Interest paid on a loan taken for pursuing higher education from taxable * income under Section 80E of the Income Tax Act, 1961 *,

    According to Section 80E *, the deduction is allowed on the total interest amount of the EMI paid during the financial year. The loan has to be taken from a bank or financial institution to pursue higher studies. One needs to obtain a certificate from the bank wherein the principal and interest amounts of the education loan paid during the financial year should be mentioned separately.

    • It is because no deduction is allowed on the principal repayment amount.
    • The interest amount paid during the financial year is allowable as a deduction from taxable * income.
    • There is no limit on the deduction amount.
    • The benefit of the deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

    It is applicable even when you have taken an education loan for your spouse, children or for a student for whom you are the legal guardian. It is advisable to wind up the higher education loan within the next 8 years to get the maximum benefit of Section 80E *,

    • Parents can make use of this section to give their children the best of opportunities in higher education and secure their careers too.
    • If they wish to send their children for foreign studies and take a loan for financing it, can also claim the deduction under Section 80E *,
    • The deduction is applicable to all courses pursued after the senior secondary examination or equivalent and it should be from a school/institute/university recognised by the government.

    Let us look at one example to know how Section 80E * deduction helped Shivam. Shivam is a regular salaried IT executive living in Mumbai with his family. His 19-year-old son, Aman is ready to pursue engineering from one of the reputed colleges in the country.

    • Shivam took an education loan of ₹ 10 lakh to fund Aman’s college fees for 4 years.
    • Aman is comfortably studying in his college with a secured career to look forward to.
    • Shivam has taken the loan for a period of 6 years, and in this duration, he can claim a deduction of Interest paid on the loan taken for higher education under Section 80E *,

    An education loan indirectly supports career-building by financing the crucial years of education. If you have taken an education loan and are in the process of repaying the same, then avail the Tax * benefit of Section 80E *, This way you can save some money while moving towards a successful career ahead.

    Any individual applying for a loan for further studies or higher education for himself or on behalf of their spouse, children or student for whom the individual is the legal guardian Companies and Hindu Undivided Family (HUF) cannot claim a deduction Only the taxpayer who has applied for the loan can claim a deduction

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    Can 80D claim without bills?

    Documents Required to Claim Tax Benefits – The Income Tax Act does not specify any list of documents that are required to claim tax benefits under Section 80D. However, it would be smart to save documentary evidence like bills of medical expenses, medicine invoices, reports of diagnostic tests, documents regarding medical history, doctor’s prescription, etc. in case you ever need to show them.
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    Can I claim 80DD without proof?

    To claim a deduction under section 80DD, no specific documents need to be furnished, but a medical certificate authenticating the disability by a medical professional is required.
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    What is Section 80DD and Section 80U?

    Difference between Section 80U and Section 80DD – Section 80DD provides tax deductions to the family members and the kin of the taxpayer with a disability, whereas Section 80U provides deductions to the individual taxpayer with a disability himself. Section 80DD is applicable if a taxpayer deposits a specified amount as an insurance premium for taking care of his/her dependent disabled person.
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    Can I claim 80DD without proof?

    To claim a deduction under section 80DD, no specific documents need to be furnished, but a medical certificate authenticating the disability by a medical professional is required.
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    Can medical bills be claimed under 80DD?

    Deductions under Section 80DD – In cases where the above conditions are met, the amount of deduction is –

    For those with disabilities over 40% but under 80%, tax deduction of Rs 75,000 can be claimed (starting with 2016-2017). For disabilities greater than 80%, tax deduction of Rs 1,25,000 can be claimed. (Starting from 2015-16). Regardless of your actual expenditures, these deductions are allowed. Note that before the Financial Year 2015-16 (FY 2014-15 & previous years) – Deductions were limited to Rs 50,000 for disabilities exceeding 40% and Rs 1,00,000 for disabilities exceeding 80%.

    Tax deduction is not influenced by the amount of expenses incurred regardless of whether the real expenses of a disabled dependent relative are less than the amount mentioned above, the tax assessed will be eligible for the full deduction. Individuals can claim tax benefits under section 80DD of the Income Tax Act, 1961, if they incur expenses related to the medical treatment, training or rehabilitation of a disabled dependent.

    1. Dependants can include the taxpayer’s spouse, children, parents, brothers and sisters.
    2. Deduction amounts also cover insurance premiums paid to specific insurance plans for disabled dependents.
    3. Section 80DD of the Income Tax Act allows deductions to individuals and Hindu Undivided Families who are Indian residents.

    The deductions under this section are not available to non-residents. A disabled dependent can include the taxpayer’s spouse, son or daughter (or any child), parents, as well as siblings (brother or sister). For Hindu Undivided Families (HUFs), any disabled member of the HUF can be considered a disabled dependent.

    For those with disabilities over 40% but under 80%, tax deduction of Rs 75,000 can be claimed (starting with 2016-2017). For disabilities greater than 80%, tax deduction of Rs 1,25,000 can be claimed. (Starting from 2015-16). Regardless of your actual expenditures, these deductions are allowed. Note that before the Financial Year 2015-16 (FY 2014-15 & previous years) – Deductions were limited to Rs 50,000 for disabilities exceeding 40% and Rs 1,00,000 for disabilities exceeding 80%.

    The following disabilities qualify for tax benefits under Section 80DD of the Income Tax Act: blindness, locomotor disability, cerebral palsy, low vision, leprosy cures, hearing impairment, mental illness, mental retardation, and autism. Under Section 80U of the Income Tax Act, a person with a disability can claim tax benefits.

    Medical Certificate – When claiming the deduction from a government hospital for the mentioned disabilities, one must provide a medical certificate. Dependants should have a document certifying their disability and that of the person they are depending upon. The certificate must be renewed on a regular basis. A form 10-IA must be filled out and submitted by individuals suffering from Autism, Cerebral Palsy, or multiple disabilities. For individuals suffering from severe mental illnesses and other disabilities, there are two alternative formats to the one mentioned earlier. Self-Declaration Certificate – Individuals must also submit a self declaration that is signed and certifies the expenses incurred for the disabled dependant’s medical treatment, including nursing care, rehabilitation and training. Receipts of Insurance Premium Paid – The receipts for the expenses of disabled dependants do not need to be preserved. But the actual receipts need to be provided if a deduction is claimed for a payment made to any insurance company in order to receive plans or schemes for the maintenance of a disabled dependent.

    The Section 80DD of the Income Tax Act, 1961 does not provide a deduction for non-resident individuals (NRIs). Individuals and HUFs can claim tax benefits under this section only if they are residents of India. The following medical authorities can certify a person as disabled:

    Civil Surgeons or the Chief Medical Officer (CMO) of a government hospital. Neurologists with a Doctor of Medicine (MD) degree in Neurology. A paediatric Neurologist holding an equivalent degree should be consulted in the case of a child.

    If any of your in-laws are dependent on your spouse and have a disability, you can claim up to Rs.75,000 in tax benefits. Nursing, training, and rehabilitation expenses can be deducted under section 80DD. In the case of a severe disability, you and your spouse can both claim deductions up to Rs.1,25,000.

    • Yes, along with deduction under Section 80D, if your parents are disabled and dependent on you, you can claim tax deduction under Section 80DD of up to Rs 75,000 for medical treatment, nursing, and rehabilitation of any dependent, including disabled parents.
    • In the case of serious disability, this limit has been increased to ₹ 1.25 lakh.

    : Section 80DD Deductions – Claim Tax Deduction on Medical Expenses of Differently-abled Dependents
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