Tax Matters

Can Married Woman Get Deduction For Treatment Of Her Sister?

I have a sister who is mentally retarded and she and my mother are dependent on me. I am married and have two kids one 4 year old and other 15 months. I wish to know whether I can claim deduction under disability provision. Jyothi, Delhi

Mental retardation is a disability within the definition of Disability Act. The definition of dependent is given in Explanation under the section 80DD is as under:

dependant means

1. in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
   
   
2. in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;
   
   

Since your sister is dependent on you, a deduction of Rs 50,000 can be claimed by you in case of any expenditure for the medical treatment (including nursing), training and rehabilitation of ,your sister, who is a person with disability .You can also get deduction in case of any deposit for insurance scheme framed by LIC or other insurer If doctor certifies for severe disability, you can get deduction up to Rs 75,000 under 80DD.

You will have to get a certificate form a Civil Surgeon or Chief Medical Officer in a Government hospital in the prescribed format. Remember now, you will not have to attach the certificate procured from doctors with the return.

Source: FAQ on Indian Income Tax Laws. TaxWorry.com