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Form 10-IA File for Claiming Deduction under Section 80U & 80DD?

July 16, 2024
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Form 10-IA File for Claiming Deduction under Section 80U & 80DD?

You might be familiar with the deductions claimed for your investments. In this article, we will learn about claiming a deduction for the medical expenses of yourself and for dependent disabled family members as well. There are deductions for expenses incurred for yourself and for dependents, which are provided in Section 80DD and Section 80U. Before the deduction, we need to make sure that you have filed Form 10-IA.

This section aims to reduce financial burdens while encouraging the economic participation of disabled individuals in society. 

What is Form 10-IA?

If the person is disabled or suffering from a specified disease to claim deductions under sections 80DD and 80U, then we need to file Form 10-IA. A certified neurologist, civil surgeon, or chief medical officer issued in a government hospital.

Before we learn the steps to filing Form 10-IA, let’s first understand what a deduction under sections 80DD and 80U is.

Section 80U

As per Section 80U of the Income Tax Act of 1961, it defines provisions for tax deductions or benefits provided to individual taxpayers affected by disabilities. According to this law, Indian residents with disabilities exceeding 40% are recognized as persons with disabilities.

Eligibility Criteria under Section 80U

If a person is an individual with disabilities, which also include autism, cerebral palsy, multiple disabilities and severe disability, they can claim a deduction under section 80U. This form 10-IA is available for deduction under section 80U.

Deduction under Section 80U

An individual can claim a deduction of up to Rs 75,000; however, if the disability is more than 80% or severe, then you can claim a deduction of Rs 1, 25,000. There will be no deduction allowed if the certificate has expired unless a new certificate is issued along with the return.

Section 80DD

As per Section 80DD, an individual or HUF who is a resident of India can claim the deduction if they have incurred any medical expenses for the treatment or care of a disabled dependent family member. If any person has paid premiums on a specified policy, then they can also claim the deduction.

Eligibility Criteria under Section 80DD

 

  • If the assessee pays the premium for the specified insurance policy on behalf of the dependent, disabled family member

Note: Family members include the spouse, children, parents, sisters, and brothers of the assessee. In the case of a HUF, any member of the HUF.

  • The assessee should have incurred medical expenses for the treatment and care of a disabled dependent person.

Note: Disability includes autism, cerebral palsy, multiple disabilities, and severe disabilities.

Deduction under Section 80DD

A sum of Rs 75,000 from the gross total income for the respective previous years if the dependent family member is disabled. For severe disability, a sum of Rs 1, 25,000 is deductible from your gross total income. 

Firstly, we need to submit Form 10-IA if you want to claim deductions under section 80DD then we file the ITR for the respective assessment year. There will be no deduction allowed under section 80DD if the certificate has expired unless a new certificate is issued along with the return.

Details to Fill in Form 10-IA

  • Name of the disabled 
  • Age 
  • Gender
  • Place of residence
  • Registration number
  • Signature of the medical authority
  • Address of the hospital
  • Designation of the specialist who signed
  • Signature or thumb impression of the disabled person.

DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990777 or info@semantictaxgen.in.

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