Section 80DD of the Income Tax Act:
Deduction in respect of maintenance
including medical treatment of a dependent who is a differently abled
person(person with disability)-
An assessee shall be allowed a deduction of Rs. 75000 from
his gross total income U/S 80DD, when during the previous year he
expenditure on any of the following two:
- incurs any expenditure on medical
treatment(including nursing), training and rehabilitation of a
differently abled dependent (person with disability); or
- paid/deposited any sum under the specified
schemes of LIC or any other approved insurer or administrator, for the
maintenance of a dependent who is a differently abled person (person with disability).
The amount of deduction U/S 80DD will be Rs. 125000, if the differently
abled dependent is a person with severe disability ie. 80% or more of
the defined disabilities.
Points of Section 80DD:
shall be incurred for a dependent: The differently abled
person in respect of whom the expenditure is incurred shall be
dependent on the assessee.
meaning: For claiming deduction Section 80DD dependent means spouse,
children, parents, brothers and sisters of the individual.
Disability is given the meaning as per Section 2(i) of the
Persons with Disabilities (Equal Opportunities, Protection of Rights
and Full Participation) Act 1995. Disability also includes autism,
celebral palsy and multiple disability.
- click here to understand in detail the defined disabilities
abled person(Person with disability): means a person
having any disability as stated above of not less than 40%.
Disability: A disability of 80% or more is referred as
deduction is claimed U/S 80U: Such differently abled dependent person shall not claim
any deduction U/S 80U while filing his/her own return for that year.
Scheme of LIC or others: shall provide for annuity or a
lump sum payment for the benefit of the differently abled dependent, in
case of death of the individual who has deposited in the scheme.
issued by Medical Authority: for claiming
deduction U/S 80DD, copy of certificate of disability from an approved
medical authority shall be furnished along with the return of
- Click here for more detail about Approved Medical Authority for Section 80DD
- However presently with online returns no
certificates are attached, but certificates must be kept safely to be
furnished to Assessing Officer when asked for.
- If the differently abled dependent predeceases
the individual: If event of death of the differently abled dependent takes place before the individual, an
amount equal to the amout paid/deposited under option 2 above(in the LIC/other approved scheme) shall be
taken as income of the individual and accordingly shall be chargeable to tax in the previous
year in which the amount is received by him.
- Production of Bills of treatment of differently abled dependent is not required:
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- As per CBDT Circular No. 775 dated 26/03/1999: "It is clarified that it
would be sufficient if the employee furnishes a medical certificate
from a Government hospital and a declaration in writing duly signed by
the claimant certifying the actual amount of expenditure on account of
medical treatment (including nursing) training and rehabilitation of
the handicapped dependant and receipt/acknowledgement for the amount
paid or deposited in the specified schemes of LIC or UTI. Therefore,
DDOs may not insist upon production of vouchers/bills by the employees
for having incurred expenditure on medical treatment of their
handicapped dependants for allowing the deduction under section 80DD
for the purpose of computing tax deductible at source."
Budget-2016, implications on individuals
Deduction u/s 80D for mediclaim/health insurance
Deduction u/s 80DDB for medical expenses on specified diseases
Deduction for Interest on Education Loan u/s 80E
U/s 80U to the differently abled
Deduction for rent paid u/s 80GG
Tax Planning Tips