ITR Filing 2023-24: The Importance of Submitting Form 10-IA for Disability Deductions

The Income-tax Act of 1961 offers various deductions to help reduce an individual's taxable income. Notably, sections 80DD and 80U provide valuable deductions for medical expenses related to disabilities, benefiting both individuals and their dependents.

These deductions significantly ease financial burdens and offer peace of mind. However, to access these benefits, it’s essential to accurately file Form 10-IA. This article discusses the importance of Form 10-IA and provides a detailed guide on how it plays a crucial role in claiming these deductions.

Why Form 10-IA is crucial

Individuals with disabilities or those with dependents having specified disabilities must file Form 10-IA, a required document. The document must be validated by a neurologist, civil surgeon, or chief medical practitioner at a government hospital. It acts as evidence for claiming deductions under sections 80DD and 80U of the Income-tax Act.

Eligibility criteria and deductions

Section 80DD allows for deductions to be claimed by an individual or Hindu undivided family (HUF) for medical treatment expenses for a disabled dependent family member. The deduction in this section applies to individuals who have paid insurance premiums for a designated policy covering a dependent family member with disabilities. Deductions can reach a maximum of Rs 75,000 per year, and for severe disabilities, up to Rs 1,25,000.

The assessee's family members consist of a spouse, children, parents, sisters, and brothers, as well as any member of the Hindu Undivided Family (HUF).

Section 80U: Just like Section 80DD, individuals who are disabled themselves and have been certified by a relevant medical authority can claim deductions. Individuals who have autism, cerebral palsy, or similar severe disabilities can claim this deduction. A person who meets the criteria can receive a deduction of Rs 75,000 per year, and if the disability is severe (80 percent), they can claim up to Rs 1,25,000.

Instructions for submitting Form 10-IA during the process of filing ITR

• Filing form 10-IA is a simple process. Access the Income Tax Department's e-filing portal with your login information.
• Go to 'e-File' and click on 'Income tax forms', then choose 'File Income Tax Forms'.
• Choose 'Individuals with no business or professional income' and then select Form 10-IA for the appropriate assessment year.
• Fill out the form with correct details about the person with disabilities, such as certificate number, name, age, gender, and medical authority information.
• Confirm the information and electronically confirm the application with methods such as Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC).

Legal implications and requirements

Having a valid certificate of disability is necessary to claim deductions under sections 80DD and 80U. To continue getting the deductions, you need to get a new certificate if the current one expires and submit it with your income tax return.

Submitting Form 10-IA is essential for individuals looking to claim deductions as per sections 80DD and 80U of the Income Tax Act. This document not only proves the medical condition but also ensures adherence to tax laws, making it easier to process deductions.

If you feel the detailed steps of submitting Form 10-IA are too complicated, it is advisable to seek assistance from a tax professional for expert advice on maximizing your tax advantages.

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