ITR filing 2023-24: Why you must file Form 10-IA for claiming disability deductions

ITR filing 2024: You can check the refund status through the income tax department’s official e-filing website

The Income-tax Act, 1961, provides a plethora of deductions to reduce the taxable element of an individual's income. Notably, sections 80DD and 80U provide significant deductions for medical expenses to those with disabilities and their dependents.

These deductions alleviate their financial obligations effectively and provide peace of mind to a large extent. However, to avail these benefits, it is crucial to file Form 10-IA accurately. This article explores the importance of Form 10-IA and provides a detailed guide on its role in claiming these deductions.

Why Form 10-IA is crucial

Form 10-IA is a necessary document to be filed by individuals with disabilities or  those who have dependents having specified disabilities. The form should be certified by a neurologist, civil surgeon or chief medical practitioner at a government hospital. It serves as proof to avail the deductions under sections 80DD and 80U of the Income-tax Act.

Eligibility criteria and deductions

Section 80DD: Under this section, an individual or Hindu undivided family (HUF) can claim deductions for expenses incurred on the medical treatment of a disabled dependent family member. The deduction under this section is eligible even if you have paid insurance premium on a specified policy for the dependent disabled family member. The deductions can go up to Rs 75,000 annually, and in cases of severe disability, up to Rs 1,25,000.

Family members include a spouse, children, parents, sisters and brothers of the assessee; and in the case of an HUF, any member of the HUF.

Section 80U: Similar to Section 80DD, deduction is allowed for individuals who are disabled themselves and have been certified by a relevant medical authority. Those with autism, cerebral palsy and any such severe disability are eligible to claim this deduction. An eligible individual can claim a deduction of Rs 75,000 annually, and in cases of severe disability (80 percent), up to Rs 1,25,000.

Also read: Your guide to filing income tax returns for the financial year 2023-24

Steps to file Form 10-IA as part of ITR filing process

The process to file form 10-IA is straightforward. Log into the e-filing portal of the Income Tax Department using your credentials.

Navigate to 'e-File' > 'Income tax forms' > 'File Income Tax Forms'.

Select ‘Persons without business/professional income’ and then choose Form 10-IA for the relevant assessment year.

Complete the form with accurate information about the disabled person, including certificate number, name, age, gender and details of the medical authority.

Verify the details and e-verify the submission using options like Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC).

Legal implications and requirements

It’s important to understand that deductions under sections 80DD and 80U cannot be claimed without a valid certificate of disability. If the certificate expires, a new one must be obtained and submitted with the income tax return to continue receiving the deductions.

Filing Form 10-IA is a critical requirement for taxpayers seeking deductions under sections 80DD and 80U of the I-T Act. This form not only substantiates the medical condition but also ensures compliance with tax regulations, thereby facilitating smoother processing of the deductions.

If you find the procedural nitty-gritty of filing Form 10-IA too complex, it is wise to consult a tax professional who can provide expert guidance and help optimise your tax benefits effectively.