You can get a deduction of Rs 50,000 to Rs 1 lakh under Section 80DD
You can claim deduction under Section 80DD for medical expenses of a physically-challenged dependent for sums from Rs 50,000 to Rs 1 lakh. The deduction is available to an individual or a Hindu Undivided Family (HUF) who has during the previous year incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a physically-challenged dependent or deposited any sum under a scheme framed in this behalf by an insurer or the UTI and which is approved.
The deduction can be claimed on the basis of a certificate from a medical authority in the prescribed form. The facility of deduction of Rs 50,000 is available in general cases. If the severity of the case is high a deduction of Rs 1 lakh is allowed (assessment year 2009-10). It includes autism, cerebral palsy and multiple disabilities. A person with severe disability means one with 80 percent or more of one or more specified disabilities.
The term dependant here refers to parents, spouse, children and siblings who are dependant on an individual for maintenance and other basic needs. Any of them must not have claimed for a deduction for their ailment.
As long as the conditions mentioned in section 80DD are fulfilled and the assessee has incurred any expenditure on medical treatment etc of the physically-challenged person, deduction as envisaged in Section 80DD will be allowable in full. The assessee must be a resident in India. The physically-challenged dependant should be a relative of the assessee and not dependant on any person other than the assessee for support or maintenance. ermanent physical disability or mental retardation must be certified by a physician or psychiatrist, working in a government hospital. The disability should reduce considerably the person's capacity for normal work, gainful employment or occupation. The assessee must have incurred the expenditure for medical treatment (including nursing), training and rehabilitation of the physically-challenged dependant. The deduction under Section 80DD of the Income Tax Act is statutory in nature. Therefore, as long as the conditions mentioned in the section are fulfilled, the deduction will be allowable in full. Deposits to schemes framed in this behalf by the Life Insurance Corporation or any other insurer or Unit Trust of India are also allowed. A lump sum amount or annuity is paid to the dependant or to his nominee in whom the dependant draws the benefit in case of death of individual depositing money in the scheme. In case the dependant predeceases the individual, the amount deposited will be deemed to be the income of individual of the previous year in which such amount is received by the individual. Accordingly, it will be stated as the income to be chargeable under income tax as the income of the previous year.
The individual must produce a copy of the certificate issued by the medical board either of the central or state government in the prescribed form. A copy of the income tax return of the same year must also be produced.
