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.
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.
Following types of amount/ expenditure are covered as a deduction under section 80DD –
‘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.|
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 –
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 certificate can be obtained from the following medical authority –
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.
Other Suggested Articles on Chapter VIA Deductions
|1.||Deduction under section 80C of Income Tax Act|
|2.||Deduction under section 80CCC of Income Tax Act|
|3.||Deduction under section 80CCD of Income Tax Act|
|4.||Deduction under section 80D of Income Tax Act|
|5.||Deduction under section 80DD of Income Tax Act|
|6.||Deduction under section 80DDB of Income Tax Act|
|7.||Deduction under section 80E of Income Tax Act|
|8.||Deduction under section 80EEA of Income Tax Act|
|9.||Deduction under section 80EEB of Income Tax Act|
|10.||Deduction under section 80G of Income Tax Act|
|11.||Deduction under section 80GG of Income Tax Act|
|12.||Deduction under section 80GGA of Income Tax Act|
|13.||Deduction under section 80GGC of Income Tax Act|
|14.||Deduction under section 80QQB of Income Tax Act|
|15.||Deduction under section 80RRB of Income Tax Act|
|16.||Deduction under section 80TTA of Income Tax Act|
|17.||Deduction under section 80TTB of Income Tax Act|
|18.||Deduction under section 80U of Income Tax Act|