There is a similar section 80U under which persons with disabilities can claim deduction for themselves. However, the rule says that if a person with disability claims tax exemption under 80U for himself, then no other person can claim tax under 80DD for a disabled person.
Know about Section 80DD of Income Tax (Typical Image)
If you serve disabled parents, then you can claim the expenditure on them in income tax. It has a special rule. This rule is related to section 80DD of Income Tax which is made for the disabled people.
If someone’s parents are more than 40 percent disabled, then that person can take income tax exemption under section 80DD. This section says that if you spend up to 75 thousand rupees on parents with disabilities up to 40 percent, then they get the benefit. This money can be claimed in income tax. If there are two brothers in the family, both are spending on their parents, then it will be seen how much their expenditure is. If both brothers spend 75-75 thousand rupees, then both brothers can claim income tax.
According to section 80DD, the expenses incurred on the treatment or service of parents, wife, children, brothers and sisters with disabilities are exempted from tax under this section. In case of Hindu joint family, any person with disability can be a member. The limit of total deduction under this section can be up to Rs 1.5 lakh if two brothers spend Rs 75-75 thousand.
You can also claim tax in 80U
There is a similar section 80U under which persons with disabilities can claim deduction for themselves. However, the rule says that if a person with disability claims tax exemption under 80U for himself, then no other person can claim tax under 80DD for a disabled person. Any Indian person can claim deduction under section 80DD. This includes the expenses related to the treatment, training and rehabilitation of the dependent disabled. There are some conditions for this such that the person himself or the dependent is suffering from any disease in which he is unable to work. The level of disability in this section should not be less than 40 percent.
How is the claim amount determined?
The special thing in this rule is that the amount of tax deduction is not determined by age but by disability. The tax claim depends on the percentage of the person who is disabled. If the aggrieved person is disabled more than 40 percent but less than 80 percent, then deduction can be claimed up to 75 thousand. If the disability is severe then this amount can be up to Rs 1.25 lakh. It has to be noted that the percentage of disability has to be correctly stated. To save tax, one has to avoid any kind of lies. Income tax action can also be taken against the taxpayer for giving wrong information.
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