Income Tax Exemption:  Under the Income Tax Act, a taxpayer is entitled to many exemptions. With these exemptions, the tax burden can be reduced. As the deadline for filling out ITR is approaching (July 31),  It is better to keep information about all the exemptions available under the Income Tax Act before the deadline. You can claim a deduction for expenditure on the treatment of a disabled person under the Income Tax Act. Under the Act, the deduction can be claimed not only on the treatment of a disabled taxpayer but also on the treatment of a family member of the taxpayer.

Sections for exemptions

- Section 80DD
- Section 80U

Tax exemption on treatment

Under section 80DD of the Income Tax Act, tax deduction can be claimed on the expenses incurred on the treatment of a disabled member of a Hindu Undivided Family (HUF). Not only this, if special insurance has been taken for the disabled member of the family, then a deduction can also be claimed on the premium.

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Who can avail of exemptions?

In the case of general disability, a deduction of Rs 75,000 can be claimed annually.
In the case of severe disability, a deduction of Rs 1,25,000 can be claimed annually.

Who will be considered as Family members?

- For this exemption, the taxpayer's family includes spouse, children, parents, sister, and brother. In the case of HUF, any member of HUF will be included.
- Under section 80U of the Income Tax Act, a disabled taxpayer can claim the deduction. However, for this deduction, the disability must be certified by a medical authority. Under this section, exemption can be obtained for severe disabilities such as autism, and cerebral palsy.

Scenario to avail exemptions

In the case of general disability, a deduction of Rs 75,000 can be claimed annually.
In the case of severe disability, a deduction of Rs 1,25,000 can be claimed annually.

Documents required for deduction

- A medical certificate is necessary for deduction.

- Form 10-IA has to be filed for this deduction.

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