Section 80DD

Irrespective of the actual expenditure, a fixed amount of deduction is applicable depending upon the severity of disability, as per Section 80DD:

1. More than 80% disability: Rs.1.25 lakh
2. 40% to 80% disability: Rs.75,000

Benefits of Claiming 80DD

1. Deductions under this section can be claimed by individuals and HUFs in full irrespective of the amount of expense incurred while caring for the dependent or in the form of insurance premium.
2. Documents related to the expenses don’t have to be produced, however you will be required to submit a medical certificate authenticating the disability of your dependent from a certified medical professional as defined by the government.

Required Documents for Claiming Tax Deduction Under Section 80DD

To qualify for tax deductions under Section 80DD of the Income Tax Act, 1961, individuals must submit the following documents:

1. Medical Certificate: To establish the disability of the dependent and claim the tax benefit, a medical certificate confirming the disability is essential.
2. Form 10-IA: If the dependent has autism, cerebral palsy, or multiple disabilities, Form No. 10-IA should be submitted as part of the documentation.
3. Self-declaration Certificate: Taxpayers must furnish a self-declaration certificate detailing the expenses incurred on the medical treatment, encompassing nursing, rehabilitation, and training, for people with disabilities.
4. Receipts of Insurance Premiums Paid: While a self-declaration certificate is generally acceptable for most expenses, retaining the actual receipts is necessary if the individual is claiming expenses related to insurance policies taken for people with disabilities dependent, as these receipts serve as proof of expenditure.

Terms for Claiming Deduction under Section 80DD

Deduction can be claimed under Section 80DD depending upon the following conditions:

1. Dependent of the taxpayer can avail deductions
2. Only Indian residents can claim deductions
3. Deduction cannot be claimed by taxpayer, if the dependent taxpayer has already claimed deduction

Deduction can also be claimed by the taxpayer, if:

1. Expenses incurred for medical treatment (including nursing), training & rehabilitation of the differently abled dependent.

2. Deposited in Life Insurance Corporation of India for maintenance of dependent.

1. If dependent is parent, spouse, children, brother, sister, or member of HUF
2. If disability is covered under Section 2(i) of the Persons of Disabilities Act, 1995

Eligibility Criteria for Claiming Section 80DD Deductions

The following are the eligibility criteria for claiming Section 80DD deduction:

1. Any individual who belongs to Hindu Undivided Families (HUF)
2. Any individual who has a disabled dependent including parents, spouse, siblings or children

Points to Note:

1. Proceeds from an insurance policy paid in case of death of the dependent to an individual will be taxable as per applicable income tax brackets.
2. The deductions under 80DD and 80U are provided over and above any other deductions claimed under the various sections of the Income Tax Act, 1961.
3. Deduction limits have been increased from assessment year 2015-16 for both categories of disabled persons. Limit for deductions on disabled dependents (40-80% disability) has been increased from Rs.50,000 p.a. to Rs.75,000 p.a. while that of severely disabled dependents (80% or more disability) has been increased to Rs.1.25 lakhs p.a. from Rs.1 lakh p.a.

Section 80DD and Section 80U

The section 80DD deals with providing tax deductions to individuals or HUFs for caring for a disabled dependent. Section 80U deductions can be claimed only by the disabled persons themselves. Also, any deduction already claimed by a disabled person under Section 80U cannot be claimed again through Section 80DD by his/her family members.

Disabilities Covered under Section 80DD

The following are the disabilities covered under Section 80DD of Income Tax Act 1961:

1. Cerebral palsy
2. Leprosy-cured
3. Loco motor disability

1. Blindness
2. Mental retardation and illness
3. Hearing impairment
4. Low vision
5. Autism