My wife developed a visual defect and is now blind. I was told that I will be eligible for tax benefits in lieu of this ailment of hers. What is the tax benefit that I can get and how much is it?
Under Section 80U, individuals with disability can claim tax benefits
My wife developed a visual defect and is now blind. I was told that I will be eligible for tax benefits in lieu of this ailment of hers. What is the tax benefit that I can get and how much is it?
Devendra Pratap, Lucknow
It must be a difficult time for you both. However, there are tax deductions that you can claim with the expense you incur towards treatment and rehabilitation of your wife or the sum deposited with the LIC or any other approved insurer towards her maintenance owing to visual disability under Section 80DD of Income-tax Act under which Rs 75,000 in a financial year can be claimed irrespective of the actual amount spent or deposited with the insurer. Also, a higher deduction of Rs 1.25 lakh in each financial year is allowed if your wife’s disability is classified as severe as per the medical evaluation.
You will need to furnish a copy of a certificate issued by a medical authority in the prescribed form and manner, which is known as Form 10 IA along with your personal tax return. However, if your wife is already availing tax benefits under Section 80U, under which individuals with disability subject to the specified conditions can claim tax benefits, you will not be able to claim the same.