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I have a handicapped dependent who is my mother's younger sister.
She is completely dependent on me and every month I spend Rs 2,000. I wanted to know whether I can claim tax benefit under 80DD?
I went through the Income Tax Act details. It states that deduction is allowed for a handicapped dependent relative. But, I could not find the definition of the word "Relative".
Would she fall under that category?
- Rajesh Shetty
Relative
The definition of dependent relative will include mother's younger sister.
Section 80DD
To claim the tax benefit under Section 80DD, the dependent person means a person having any disability of not less than 40%, as per section 2(i) of the Persons with Disability Act, 1995.
Section 80DD deduction is available only towards medical treatment of dependents with specified disabilities.
Section 80DDB
Do not confuse the above section with this one.
Section 80DDB allows deduction of expenses on medical treatment of specified ailments prescribed under Rule 11DD of the Income Tax Rules.
The list of diseases/ ailments falling under this section:
1. Neurological diseases where the disability level has been certified to be of 40% and above. These include:
- Dementia
- Dystonia Musculorum Deformans
- Motor Neuron Disease
- Ataxia
- Chorea
- Hemiballismus
- Aphasia
- Parkinson's Disease
2. Malignant cancer
3. Full blown Acquired Immuno Deficiency Syndrome, commonly referred to as AIDS
4. Chronic renal failure
5. Hematological disorders. These include:
- Hemophilia
- Thalassaemia
I had undergone dental surgery treatment which cost me Rs 4,500.
Can I claim dental expenses under the medical reimbursement allowance of Rs 15,000?
- S V Srinivasa
Yes, you can claim dental expenses of Rs 4,500 under the medical reimbursement allowance provided you give a doctor's prescription.
For general medical reimbursement, Rs 15,000 is the maximum tax break that an individual can avail of against actual supporting documents.
My father underwent open heart surgery.
I spend Rs 3,000 to Rs 4,000 every month on his medicines. Can I avail of a tax benefit on this amount?
Would this surgery be covered under section 80DD?
- Rohan
Section 80DD deduction is available only towards medical treatment of dependents with specified disabilities. This is not applicable in your case.
Also, the benefit available under section 80DDB will not apply since heart disease is outside the purview of specified ailments that are prescribed there.
Please read the answer given to Rajesh above.
You could use the exemption afforded to employees for medical reimbursement up to Rs 15,000 (see reply to Srinivasa above).
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