Section 80DD - Claim Deduction & Eligibility

Section 80DD of the Income Tax Act, 1961, provides tax deductions for individuals who bear the medical expenses of a disabled dependent. This section aims to offer financial relief to taxpayers who support their disabled family members by covering medical treatment, rehabilitation, and other related expenses.

Eligibility for Section 80DD Deduction

To claim benefits under Section 80DD, taxpayers must meet specific eligibility criteria. This deduction is available only to individuals and Hindu Undivided Families (HUFs) who are residents. It applies exclusively to dependents such as spouses, children, parents, or siblings who have a disability and are financially reliant on the taxpayer. The deduction is not available if the disabled individual has already claimed benefits under Section 80U in their own income tax return.

For a dependent to qualify under this section, they must have a minimum disability of 40% as per the definition provided in the Persons with Disabilities (Equal Opportunities, Protection of Rights, and Full Participation) Act, 1995. The disabilities covered include blindness or low vision, hearing impairment, mental retardation, autism, cerebral palsy, locomotor disability, and multiple disabilities. To avail of this deduction, the taxpayer must obtain a valid disability certificate from a recognized medical authority as per government regulations.

Amount of Deduction Available Under Section 80DD

The deduction under Section 80DD is a fixed amount, regardless of actual expenses incurred. The limits are:

• ₹75,000 per year for dependents with 40% to 79% disability.
• ₹1,25,000 per year for dependents with 80% or more disability (severe disability).
• The deduction applies irrespective of the actual amount spent on medical care.

Expenses Eligible for Deduction

The deduction is allowed for the following expenses incurred for the dependent:

• Medical treatment and therapy, including nursing and rehabilitation.
• Training expenses for the disabled dependent.
• Amount paid towards insurance policies taken for the maintenance of the dependent with a disability.
• Hospitalization and long-term care costs.

How to Claim Deduction Under Section 80DD?

To claim the deduction successfully, the taxpayer must follow these steps:

• Obtain a valid disability certificate issued by a medical board authorized by the government.
• Attach a copy of the disability certificate while filing the income tax return (ITR).
• Maintain records of expenses incurred on medical treatment, insurance, and other related costs.
• Renew the disability certificate periodically as required.

Difference Between Section 80DD and Section 80U

• Section 80DD applies to taxpayers who incur expenses for a dependent with a disability.
• Section 80U is for individuals who themselves suffer from a disability and claim deductions directly in their tax return.

Key Points to Remember

• The deduction is available only to residents and not for NRIs.
• The dependent should not have claimed any separate deduction under Section 80U.
• If the taxpayer claims deduction under Section 80DD, they cannot claim medical insurance premium benefits under Section 80D for the same dependent.
• The disability certificate must be renewed periodically based on medical assessment.

1. Who can claim a deduction under Section 80DD?

Section 80DD can be claimed by a resident individual or a Hindu Undivided Family (HUF) who has incurred expenses for the medical treatment, training, or rehabilitation of a dependent with a disability. The dependent can be a spouse, children, parents, or siblings.

2. Can non-resident Indians (NRIs) claim a deduction under Section 80DD?

No, this deduction is available only to resident individuals and HUFs. Non-resident Indians (NRIs) are not eligible to claim benefits under this section.

3. Is a medical certificate required to claim a deduction under Section 80DD?

Yes, a medical certificate issued by a recognized medical authority is mandatory. The certificate should confirm the nature and extent of the disability.

4. Can both parents claim the deduction if they have a disabled child?

No, only one parent can claim the deduction for the disabled dependent in a financial year.

5. Can I claim Section 80DD deduction if my dependent has already claimed benefits under Section 80U?

No, if the disabled dependent has claimed a deduction under Section 80U in their own income tax return, then the taxpayer cannot claim benefits under Section 80DD for the same dependent.