As a first-time tax filer in India, you can claim deductions for the expenses incurred in the maintenance of dependent family members.
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Who qualifies as a dependent family member?
Dependent family members include your spouse, children, parents, and siblings who are dependent on you for financial support due to their age, disability, or any other reason specified by the Income Tax Act.
What are the Deductions under Section 80DD?
Section 80DD of the Income Tax Act allows for deductions on expenses incurred for the medical treatment, training, rehabilitation, or nursing care of a dependent family member with a disability. The deduction amount depends on the severity of the disability:
- Disability below 40%: If the dependent family member has a disability below 40%, a deduction of up to Rs. 75,000 can be claimed.
- Severe disability (40% or more): If the dependent family member has a severe disability of 40% or more, the deduction amount increases to Rs. 1,25,000.
What are the Deductions under Section 80DDB?
Section 80DDB provides deductions for medical treatment expenses incurred for specified diseases or ailments of the dependent family members. The deduction amount varies based on the age of the family member and the disease being treated:
- Below 60 years: For people under 60, a deduction of up to Rs. 40,000 can be made for medical costs related to certain disorders.
- 60 years or above: The deduction limit rises to Rs. 1,000,000 for those who are 60 years of age or older.
What are the supporting documents needed to claim deductions under Sections 80DD and 80DDB?
To claim deductions for maintenance expenses of dependent family members, it is important to gather and maintain the necessary supporting documents, including medical bills, prescriptions, disability certificates, and relevant medical reports. These documents act as proof of the expenses incurred and help substantiate your claim during the tax filing process.
Look up more articles here for a smooth first time tax-filing process. All the best!
