Form 10-IA: How to Claim Deductions Under Section 80DDA and 8OU
The deductions claimed for your investments may be recognisable to you. However, some concepts may still be overwhelming for taxpayers. Did you know that the medical expenses that you and your dependent, disabled family members endure can be deducted? You can claim deductions for your dependents and expenses under Sections 80DD and 80U. You must ensure that you have filed Form 10-IA to claim deductions. This article will help you understand what Form 10-IA is and how to file it.
Table of content
What is Form 10-IA?
Form 10-IA must be submitted if the individual is incapacitated or afflicted with a specific illness to be eligible for deductions under sections 80DD and 80U. It is issued by a government hospital's chief medical officer, licenced neurologist, or civil surgeon. Let's first examine what constitutes a deduction under sections 80DD and 80U before learning how to file Form 10-IA.
When is Form 10-IA to be Furnished?
When claiming a deduction under section 80DD/80U, Form 10 IA must be submitted. The costs of treating a dependent with a handicap or severe disability are reimbursed under these sections, provided certain conditions are fulfilled. The reduction is only permitted if the individual has multiple disabilities, autism, or neurological conditions and is certified by:
A healthcare professional with a Doctor of Medicine (MD) degree in neurology (or a paediatric neurology degree if the patient is a child); or
A chief medical officer or civil surgeon working in a government-run hospital.
Note: If the disability condition is temporary and needs to be reviewed after certain periods of time, the certificate in Form No. 10-IA remains valid for the period beginning with the assessment year relevant to the year before the certificate's issuance and ending with the assessment year relevant to the year prior to the certificate's Form 10 IA validity expiring.
Section 80DD: An Overview
According to section 80DD, an individual or HUF who lives in India and has paid medical costs for the care or treatment of a dependent family member having a disability may claim the deduction. In addition, you can claim the deduction if you have paid any premiums for a particular coverage. It must be noted that the insurance policy premium paid or deposited can be considered income received by the assessee and liable for taxation for a previous year if the dependent person passes away before the assessee.
Section 80DD Eligibility Criteria
If the assessed person pays the premium for the chosen insurance policy on behalf of the family member who is dependent and disabled.
The assessee's parents, siblings, and spouse are all designated family members. Any member of a HUF, in this context.
Medical costs for the treatment and care of a dependant disabled person must have been paid by the assessee.
Autism, cerebral palsy, multiple disabilities, and severe illnesses are all considered forms of disability.
Section 80DD Deductions
If the dependant relative is disabled, the amount is Rs 75,000 from the gross total income for the corresponding prior years. You may deduct up to Rs 1,25,000 from your gross total income if you have severe disabilities. You must submit Form 10-IA and your income tax return from the appropriate assessment year to claim a deduction under section 80DD. Section 80DD does not allow for deductions if the medical authority's certificate of incapacity has expired unless the enclosed income return is supported by a fresh certificate.
Section 80U: An Overview
Those certified disabled by the medical authority are eligible for a deduction under Section 80U. If the medical authority's certificate of incapacity has expired, no deduction will be permitted. To claim a deduction, the return submitted under section 139 must be provided with a fresh certificate.
Section 80U Eligibility Criteria
Section 80U allows a deduction for those with disabilities, which includes people with autism, cerebral palsy, multiple disabilities, and severe disabilities. To claim deductions under section 80U, Form 10-IA must be filed.
Section 80U Deductions
Individuals can deduct up to Rs 75,000; however, if their handicap is severe or greater than 80%, they can deduct Rs 1,25,000. If the original certificate of disability has expired, no deduction will be granted unless a fresh certificate is attached to the filed return.
According to the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities Act, 1999 (44 of 1999), a person is said to have a severe disability if they have 80% or more of one or more disabilities.
Section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or Section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) both refer to individuals with disabilities.
Components of Form 10-IA
Form 10-IA comprises
The crippled person's name
Age
Gender
Place of residence and gender
Registration number
The signature of the medical authority
Hospital address and the name of the signing expert
The name of the signing expert
Thumbprint or signature of the disabled individual.
Steps to Fill Out Form 10-IA
Form 10-IA must be uploaded to the income tax portal. The steps to filing Form 10-IA are as follows.
Step 1: Access the e-filing portal and log in.
Step 2: From the dashboard, select "e-File" > "Income tax forms" > "File Income Tax Forms".
Step 3: Select Form 10-IA after selecting the Persons without Business / Professional Income tab.
Step 4: Select the 2024–2025 assessment year.
Step 5: Select "Let's begin."
Step 6: Complete all the necessary information. Choose the preview option.
Step 7: Select the "proceed to e-Verify” option.
Step 8: Select "Proceed" to E-Verify after going over all the data. You have two options for e-verification:
Electronic Verification Code (EVC)
Form 10-IA has been successfully submitted through the income tax system.
Conclusion
Sections 80D, 80DD, 80DDB, and 80U of the Income Tax Act offer reimbursement for medical costs. The deductions are only available to you and your dependent family if you file Form 10-IA and have a disability. To claim deductions under the Income-tax Act, individuals must possess the required documentation.
FAQ
Q1. What is considered a disability according to the Income Tax Act?
Individuals with autism, cerebral palsy, and various disabilities are regarded as disabled.
Q2. When should you file Form 10-IA?
Form 10-IA must be submitted by an individual or HUF to use section 80DD and 80U deductions.
Q3. Who should certify Form 10-IA?
In a government hospital, the chief health officer, civil surgeon, or neurologist must provide a medical certificate on Form 10-IA.
Q4. Can I claim a deduction under section 80DD without a medical certificate?
No, you need a documented medical certificate to claim a deduction under section 80DD.
Q5. Can I claim deductions under section 80DD and 80U simultaneously?
No, you cannot concurrently claim deductions under 80DD and 80U.
Q6. What is the maximum deduction limit that you can claim?
One can claim a deduction of Rs 75,000. However, Rs 1,25,000 can be deducted under sections 80DD and 80U if the damage is severe or exceeds 80%.
Q7. What is Form 10-IA Used For?
Form 10-IA is used to certify eligibility for tax deductions under Sections 80DDB and 80U for specified medical conditions and disabilities.
Q8. Who Issues Form 10-IA?
A registered medical specialist from a government-recognized hospital or institution issues Form 10-IA.
Q9. Can Form 10-IA Be Used for Multiple Years?
Yes, for chronic conditions or permanent disabilities, Form 10-IA can be reused if it remains valid. Check its validity before filing.
Q10. What Medical Conditions Qualify Under Section 80DDB?
Specified diseases such as cancer, Parkinson’s, and chronic kidney disease qualify under Section 80DDB when certified using Form 10-IA.
Q11. What Disabilities Qualify for Section 80U?
Disabilities like blindness, autism, and cerebral palsy qualify for Section 80U deductions with Form 10-IA certification.
Q12. What is the Deduction Limit Under Section 80DDB?
Taxpayers can claim up to ₹40,000 (₹1,00,000 for senior citizens) for specified medical treatments.
Q13. What is the Deduction Limit Under Section 80U?
Section 80U offers deductions of ₹75,000 for general disabilities and ₹1,25,000 for severe disabilities.
Q14. Do I Need to Submit Form 10-IA While Filing ITR?
No, but you must keep it handy and submit it if the Income Tax Department requests it during an assessment.
Q15. Can Form 10-IA Be Submitted Online?
Currently, Form 10-IA is not submitted online. It needs to be certified physically by a medical practitioner.
Q16. Is Form 10-IA Mandatory for All Section 80U Claims?
Yes, it’s mandatory as it certifies the disability and its severity, which determines deduction eligibility.
Q17. What Details Are Included in Form 10-IA?
It includes the taxpayer's details, diagnosis, percentage of disability, and the certifying doctor’s credentials.
Q18. How Often Should Form 10-IA Be Renewed?
It depends on the medical condition or disability. For chronic or progressive conditions, renewals might be needed periodically.
Q19. What Happens if I Don’t Have Form 10-IA?
Without Form 10-IA, you cannot claim deductions under Sections 80DDB or 80U, as it’s essential proof for eligibility.
Q20. Can I Claim Deductions Without Form 10-IA?
No, Form 10-IA is mandatory to certify the disease or disability for claiming these tax benefits.
Q21. What Should I Do If My Form 10-IA Is Rejected?
Check if the form was issued by an authorized practitioner and reapply with the correct documentation.
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