Is Disability Due To Knee Replacement Eligible For Deduction?

My father has undergone a Knee replacement operation due to which he has partial mobility in his left leg.A Physiotherapist has been employed to increase his mobility. I have a certificate from the doctor who operated upon him. Will this qualify as a disability under Section 80DD? Priya ,Pune

Section 80DD does not provide for deduction of expense on all disease. But the specified disease which makes people disable. Disabilities defined in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), are covered for deduction u/s 80DDB . One of the disability defined under the said Act is "Locomotor Disability" which is explained as under :

(o) “locomotor disability” means disability of the bones,
joints or muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy;

As your father has disability of joints which restricts his movement , I feel you are eligible for deduction u/s 80DD if you are spending on his treatment or maintenance.
Did you read these?
What Is Disability as Per Income Tax Act?
How to Claim Dedcution u/s 80DD?

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Can Buying Insurance On Disabled Person's Name Give You Deduction ?

My wife is physically challenged. I am currently in the process of purchasing a life insurance policy for her, the annual premium for the same will come to Rs. 40000. Will this amount be eligible for deduction under Section 80DD, if the policy is in her name and I am paying the premiums. Or I need to purchase a policy for her and then make her a nominee. Ravi, Mumbai

Section 80DD is relief provision under I T Act for those assessee who are incurring expenditure on dependent person suffering from some disease. The details regarding disease can be read here .

The provision provides normal deduction of Rs 50,000 and in case of severe sufferance , up to Rs 75,000. The condition to be satisfied for claiming the deduction are given in sub section 2 of section 80DD which is reproduced below:

(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:

(a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;

(b) the assessee nominates either the Dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the Dependant, being a person with disability.

So in plain words , you can avail of deduction u/ s 80DD if

1. Insurance policy is purchased either in your name or in your wife name .
2. The policy should be specially framed to provide annuity or lump sum to the dependent patient on whose name or for whom you are buying insurance policy.
3. If you take the policy in your name , the nominee has to be either the dependent person or any other person , but only for the benefit of the dependent person.

In nutshell , you can buy the insurance policy on your wife's name.

Did you read these answers?

• How to Claim Deduction u/s 80DD?
• Where Can I Get The Prescribed Form For Disability Certificate For 80DD or 8DDB or 80U?
• Can One Claim Deduction For Expense On More Than One Disable Dependant?

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Can One Claim Deduction For Expense On More Than One Disable Dependant?

I have to file income tax return where the assessee has 3 medically disabled person i.e Father , Mother and Uncle (fathers brother). What is the process of getting deduction for the A.Y. 2007-08 , What is the amount and what is deduction. Pinky Sitalni

Since you have asked regarding three relatives who are physically disable and you want to get deduction for expense on their maintenance , I must opine first on the issue whether you are eligible for one patient or more than one patient who are your relatives and dependent on you.

I find the provision has used the word “a dependant” and “ a person with disability’ plain reading of which states that the deduction is allowed in case of one dependant t only. Read the opening lines of section 80DD

80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,
(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

Following points should be noted regarding claim of deduction u/s 80DD and also read this.

1. Section 80DD provides for deduction in case of an individual who spends on maintenance of physical disable person.
2. The physical disable person must be dependent on you.To know more on this , see this answer.
3. Types of physical disability covered are given here.
4. You will need to get certificate in prescribed forms. Different types of forms are required for different types of disability.Get Forms from here.
5. The prescribed authority for giving such certificates are: (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.
6. The deduction allows is Rs 50,000 (Rs 75000) in case the disable person is suffering from severe disability.
7. person with severe disability means

• a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or
• 
  

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Where Can I Get The Prescribed Form For Disability Certificate For 80DD or 8DDB or 80U?

Three sections under I T Act prescribes for deduction on account of medical reasons. Section 80DD,80DDB and 80U . Two important points need mention

1. Although these sections still state that such certificate should be attached with the return of income, the return itself from Asst Yr 2007-08 has gone under a total change and no documents are to be enclosed with the return. This must be unintended confusion by law makers. In due course , there may be amendment to these provisions .However, in any case I feel you will have to get these ailments certified and then claim the deduction. The certificates should be preserved with you for future requirements, if ever department wants to see it.

2. The Rule 11A of IT Rule under Sub-rule 2 prescribes "

(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, 2001published 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.

Thus for 80DD , there are two set of forms . One is the form 10-IA which is given in I T Rule . You can get it from here. The other is for most of the other disabilities defined in the aforesaid notification published in the Gazette of India .It can be downloaded from here . In this notification , under Annexure B , following two types of forms are provided - one for mental retardation and other of other types of disabilities.Those two forms are given below

A. Form for Mental Retardation

Certificate of mental retardation for Government benefits

This is to certify that Shri/Smt./Kum........................... Son/Daughter of ................................... of Village/Town/City .................. with particulars given below :—

(a) Age

(b) Sex

(c) Signature/Thumb impression

Categorisation of mental retardation Mild/Moderate/Severe/Profound

Validity of the Certificate : Permanent

Signature of the Government

Doctor/Hospital with seal

Chairperson Mental Retardation

Certification Board

Recent Attested Photograph showing the disability affixed here.

Dated :

Place :

B. For all other disabilities

Standard Format of the Certificate

Name & Address of the Institute/Hospital issuing the certificate

Certificate No. ........................ Date ..........................

Certificate for the persons with disabilities

This is to certify that Shri/Smt/Kum.......................... son/wife/daughter of Shri ............................ Age ..................... old male/female, Registration No. ....................... is a case of ............................ He/She is physically disabled/visual disabled/speech & hearing disabled and has ..........................
% (....................... per cent) permanent (physical impairment/visual impairment/speech & hearing impairment) in relation to his/her ............................

Note :—

1. This condition is progressive/non-progressive/likely to improve/not likely to improve.*

2. Re-assessment is not recommended/is recommended after a period of .......................... months/years.*

*Strike out which is not applicable.

Sd/- Sd/- Sd/-

(Doctor) (Doctor) (Doctor)

Seal Seal Seeal

Signature/Thumb impression

of the patient.

Countersigned by the

Medical Superintendent/CMO/Head of

Hospital (with seal)

Recent Attested Photograph

showing the disability affixed

here.

80DDB

In case of deduction 80DDB , the disease covered are given in Rule 11DD which is given here .The form for deduction u/s 80DDB can be downloaded from here .

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How to Claim Dedcution u/s 80DD?

Updated

My mother (75) was suffering from high blood pressure and experienced stroke in the left side of the brain causing paralysis of the right half of the body,what is medically termed as "right sided hemiplegia " .She is now bed ridden since 18.12.06 .
My question is ----------------

• 1.Does it come under 'disability' as defined in the IT ACT;
• 2.May I claim medical expenditure incurred as deduction under S. 80DD of the ACT;and
• 3.If so how? ab_taurean@.............com
  

Read more about deduction u/s 80DD here.I think you can claim deduction u/s 80DD because per the definition of disability given in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996, locomotor disability is also included. The locomotor disability is defined as follows

• "(o) “locomotor disability” means disability of the bones, joints or muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy"

You read further this for knowing about disability definition .

Procedures

1. Obtain a certificate from a Civil Surgeon or Chief Medical Officer in a Government hospital
2. Obtain the prescribed form Form No. 10-IA for person suffering from autism, cerebral palsy or multiple disability and in form given here for person suffering from other disease as per Disability Act
   
3. The prescribed authority for giving such certificates are: (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.

4. Claim Rs 50,000 u/s 80DD , but if the medical authority certify to be severe disability , claim rs 75,000.

Remember, now you will have to Only obtain the the certificate for claiming the deduction and Not to enclose with the Return , even though section 80DD says so , because now no documents can be attached with the Return . Maybe Govt forgot to amend this section.

Tags: Deduction, India

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