- CA Sandeep Kanoi
- | Income Tax - Articles
- 22 Sep 2019
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Deduction under section 80DD of the Income Tax Act covers the amount paid towards the medical expenditure of a dependant with a specific disability. It also covers the amount of insurance premium paid towards specific insurance plans.
The current article provides a complete explanation of all the provisions covered under section 80DD of the Income Tax Act.
Categories of a person eligible for deduction under section 80DD
Only an individual and a Hindu Undivided Family (HUF) are eligible for claiming deduction under section 80DD.
However, an individual and a Hindu Undivided Family (HUF) should be resident in India only then deduction under section 80DD is available. In other words, deduction under section 80DD is not available to non-resident.
Type of amount/ expenditure covered under section 80DD –
Following types of amount/ expenditure are covered as a deduction under section 80DD –
- Any expenditure incurred towards the medical treatment, training and rehabilitation of a ‘dependant’, where a dependant is a person with a disability.
‘Dependant’ here means the following –
| Type of assessee | Dependant meaning |
| An individual | Spouse, children, parents, brothers and sisters of the individual or any of them. |
| A Hindu Undivided Family | Any member of the Hindu Undivided Family. |
- Any amount paid / deposited towards Life Insurance Corporation (i.e. LIC), Unit Trust of India (i.e. UTI) or any other insurers solely for the purpose of buying specific schemes or insurance policies to help in the maintenance of a dependant person.
It is mandatory that the scheme should provide the annuity / lump-sum benefit, in the event of the death of an individual, for the maintenance of the dependant person suffering from a disability.
Amount of deduction –
As per section 80DD, the assessee is eligible to claim a deduction of INR 75,000 from his gross total income. However, in case the dependant is a person with severe disability, the assessee is eligible to claim a deduction of INR 1.25 Lakhs.
In nut-shell, deduction of INR 75,000 is available for a ‘person with disability’ and deduction of INR 1.25 Lakhs is available for a ‘person with a severe disability’.
List of specified disability covered under section 80DD –
Following disease are covered under section 80DD –
- Mental retardation.
- Mental illness.
- Low vision.
- Cerebral palsy.
- Hearing impairment.
- Leprosy-cured.
- Loco motor disability.
Understanding the terms ‘person with disability’ and ‘person with severe disability’ –
As seen above, the deduction amount differs between a ‘person with disability’ and ‘person with a severe disability’. Hence it is important to understand both the terms.
When the dependant person has at least 40%, but less than 80%, of any of the above specified disability, such person is termed as ‘person with disability’.
However, when the dependant person has at least 80% or more of any of the above specified disability, such person is termed as ‘person with severe disability’.
Certain important conditions –
- The dependant should not have claimed deduction under section 80U in respect of the same amount / expenditure for which the assessee is claiming deduction under section 80DD.
- In case the dependant suffering from Cerebal Palsy or Autism or multiple disability, it is required to submit Form no. 10-IA.
- The assessee claiming deduction under section 80DD is mandatorily required to furnish a copy of the certificate from the medical authority certifying therein the disability of the dependant.
The certificate can be obtained from the following medical authority –
- A neurologist having a degree of Doctor of Medicine in Neurology or a Pediatric Neurologist with similar degree; or
- A civil surgeon or a chief medical officer in a Government hospital.
- In case the disability certificate obtained from the medical authority is expired, the deduction under section 80DD is not available for the respective previous year unless a new certificate is obtained from the medical authority.
- The assessee claiming deduction under section 80DD is required to furnish self-declaration certificate certifying therein the expenditure incurred towards the medical treatment of the disabled dependant which includes rehabilitation, nursing and training.
Frequently Asked Questions (FAQ) –
Q.1 What is 80DD in income tax?
Ans: 80DD provides deduction towards the medical treatment, training and rehabilitation of a disabled dependant or towards the amount of insurance premium paid for specified insurance plan for the disabled dependant.
Q.2 How do I claim a section 80DD?
Ans: For claiming deduction under section 80DD it is mandatory to obtain certificate from the medical authority certifying the disability of the dependant.
Q.3 Who can claim 80DD?
Ans: Only a resident individual and a Hindu Undivided Family can claim deduction under section 80DD.
Q.4 What is the disease covered under section 80DD?
Ans: Disease like mental retardation, mental illness, blindness, low vision, autism, cerebral palsy, leprosy-cured, hearing impairment and loco motor disability are covered under section 80DD.
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My father suffered from locomotor disability for a period of 3 months and expired in Dec. He was treated, rehabilitated & nursing care, physiotherapy & was given during that period. Can I now claim exemption under 80DD
I have certificate of mental disability (60%) given by authorized Govt civil surgeon for my son.Is any proof in addition to the copy of the certificate required to produce to DDO to avail the deduction of Rs 75000/ from the salary?
MY SISTER-IN-LAW IS 75% MENTALLY RETARDED HANDICAPPED. SHALL I CLAIM FOR HER UNDER SECTION 80DD. PL LET ME KNOW AS EARLY AS POSSIBLE.
My Mother -in-law is more that 40% disable. (leprosy). She is staying with me. My wife is only taking caretaker. She don’t have any other support of income ] All expenses are incurred by me. Can I claim IT Deduction u/s 80DD ? Will she include in dependent lit?
What should be the proof submitted for mental retardation to avail 80DD? Is disability certificate enough?