You might be familiar with the deductions claimed for your investments. Did you know you can claim a deduction for the medical expenses incurred for yourself and dependent disabled family members? Section 80DD and Section 80U provide deductions for expenses incurred for yourself and your dependent. To claim deductions, you have to make sure that you have filed Form 10-IA.
Here is our guide to understand what Form 10-IA is and the steps to file it.
What is Form 10-IA?
Form 10-IA should be filed if the person is disabled or suffering from a specified disease to claim deductions under sections 80DD and 80U. It is issued by a certified neurologist, civil surgeon, or chief medical officer in a government hospital.
Before we learn the steps to file Form 10-IA, let's first understand what is a deduction under sections 80DD and 80U.
Section 80DD
As per section 80DD, an individual or HUF who is a resident of India can claim the deduction if you have incurred any medical expenses on treatment or care of a disabled dependent family member. You can also claim the deduction if you have paid any insurance premiums on a specified policy.
It should be noted that if the dependent individual dies before the assessee, the premium paid or deposited insurance policy will be deemed to be income received by the assessee and chargeable to tax for the previous year.
Eligibility Criteria Under Section 80DD
- If the assessee pays the premium to the specified insurance policy on behalf of the dependent disabled family member
Note: Family members include 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 on the treatment and care of a dependent disabled person.
Note: Disability includes autism, cerebral palsy, multiple disability and severe disability.
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.
To claim a deduction under section 80DD, you should submit Form 10-IA and the income tax return filed for the respective assessment year. No deduction can be claimed under section 80DD if the certificate of disability provided by the medical authority has expired. Unless a new certificate is furnished along with the return of income filed.
Section 80U
Section 80U provides a deduction for individuals who are certified by the medical authority disabled. No deduction shall be allowed if the certificate issued by the medical authority certifying disability has expired. A new certificate along with the return filed under section 139 should be furnished to claim deduction.
Eligibility Criteria Under Section 80U
Individuals who are disabled, which includes autism, cerebral palsy, multiple disabilities, and severe disability can claim a deduction under section 80U. Form 10-IA should be filed to claim deductions 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. No deduction shall be allowed if the certificate of disability issued has expired unless a new certificate is furnished along with the return filed.
Note:
- Severe disability - a person with 80% or more of one or more disabilities or a person with a severe disability referred to in the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
- Person with disability- means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
Details to Fill in Form 10-IA
Form 10-IA includes
- 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/ thumb impression of the disabled person.
Steps to File Form 10-IA
You have to upload form 10-IA, in the income tax portal. Here are the steps to file Form 10-IA.
Step 1: Login on the e-filing portal
Step 2: On the dashboard, click ‘e-File’ > ‘Income tax forms’ > ‘File Income Tax Forms’
Step 3: Choose Persons without Business / Professional Income tab, then choose Form 10-IA.
Step 4: Choose Assessment year 2024-25
Step 5: Choose “ Let’s get started”.
Step 6: Fill in all the required particulars. Select preview option
Step 7: Choose the “proceed to e-Verify” option.
Step 8: After reviewing all the information, ‘Proceed’ to E-Verify. You can e-verify either through:
- Aadhaar OTP
- Digital Signature Certificate (DSC)
- Electronic Verification Code (EVC)
You have successfully filed Form 10-IA in the income tax portal.
Format of Form 10-IA
Conclusion
The Income Tax Act provides relief for medical expenses incurred under sections 80D, 80DD, 80DDB, and 80U. If you are an individual with disabilities or your dependent family is, then section 80DD and 80U deductions can be claimed only if you file Form 10-IA. Individuals need to have the necessary documents to claim the deductions under the Income-tax Act.