Page Contents
- 1. Deduction under Section 80DD for expenses on maintenance/ medical treatment of disabled dependent
- 2. Who is eligible to claim deduction under Section 80DD?
- 3. What Expenses are eligible for deduction under Section 80DD?
- 4. Definition of relative: Who can be your disabled dependant?
- 5. Policies in which one can invest for deduction under Section 80DD
- 6. What is considered as disability and Severe Disability for deduction under Section 80DD?
- 7. Other Conditions to claim deduction under Section 80DD
- 8. Who can issue medical certificate of disability?
- 9. Taxability of Premium Amount Paid in Case disable dependant dies before the taxpayer
- 10. Amount of Deduction under Section 80DD and Tax Saving
- 11. Frequently Asked Questions on deduction under Section 80DD
1. Deduction under Section 80DD for expenses on maintenance/ medical treatment of disabled dependent
In Past few years cost of medical treatment has shoot up very sharply and has made medical treatment almost out of reach of Lower and Middle class families in India. Government of India has in order to provide some relief to those who have a dependent with disability or sever disability provided some relief’s from Income tax under section 80DD of the Income Tax Act, 1961.
2. Who is eligible to claim deduction under Section 80DD?
- Individual or a Hindu undivided family, who is a resident in India.
- Deduction u/s 80DD is not available to non-resident Indian (NRI).
3. What Expenses are eligible for deduction under Section 80DD?
- Expenditure for the medical treatment (including nursing), training and rehabilitation of a disabled dependent.
- Money paid to Life Insurance Corporation (LIC), Unit Trust of India or any other insurer for the purpose of buying specified scheme or insurance for the purpose of maintenance of such disabled dependant.
4. Definition of relative: Who can be your disabled dependant?
⇒ For individuals, your spouse, son / daughter (any child), parents and brother / sister (siblings) can be your handicapped dependants.
⇒For HUFs, any member of the HUF can be a disabled dependant.
⇒The disabled person should be wholly or mainly dependant on you for his / her support and maintenance, and should not have claimed deduction under section 80U.
Some considerations for the insurance premium
- Not all schemes qualify – there are specific schemes meant for this purpose. The policy has to insure your life. i.e. it should be in your name.
- Premium is required to be paid on annual basis or a lump sum amount for the benefit of the disabled dependant.
- Nomination of Policy should be in the name of (a) your disabled dependant, or (b) any other person or trust that would receive the money for the benefit of your disabled dependant
5. Policies in which one can invest for deduction under Section 80DD
♣ Life Insurance Corporation of India offers Jeevan Vishwas policy for the benefits of parents or guardian of person with physical disabilities which qualify for tax benefit under Section 80DD.
This policy ensure that the dependant person with physical handicap does not have to depend on anybody for financial support in case something happens to his parent or guardian. Jeevan Vishwas is a policy which participates in profits.
Under this insurance policy, the life of the person, on whom the handicapped person is dependant, is insured. In case the dependant dies before the guardian/parent, the parent/guardian will have the option to either keep the policy for a reduced paid-up sum assured or entitled to receive the refund of premiums paid.
However if the parent/guardian dies before the dependant, 20% of the lump sum assured becomes payable for the benefit of the dependant. Moreover the balance is paid by way of monthly annuity for 15 years for sure and thereafter for life on the life of dependant.
♣ The health insurance cover provided by National Trust needs special mention. The trust has introduced “Niramaya” health Insurance Scheme for persons with disabilities like Autism, Cerebral Palsy and Mental Retardation etc. Under this scheme, for those who have family income of less than Rs. 15,000 per month, you need to make a payment of Rs. 250 per year. For the person having family income of more than Rs. 15,000 per month is required to pay an amount of Rs.500 per year. For the families which are Below Poverty Line (BPL) this scheme is free, provided the applicant holds the BPL card. This scheme covers health expenses up to a limit of Rs. 100,000 per year for the person suffering from these disabilities. The scheme is administered by National Trust in collaboration with ICICI Lombard. Under this scheme even existing disease are covered without any medical check up. Moreover this plan covers routine expenses like medical check up, transportation and corrective surgery etc. which are not covered under regular health insurance products.
6. What is considered as disability and Severe Disability for deduction under Section 80DD?
Disability would be as defined under clause (i) of section 2 by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995” and will also include disabilities referred to in clauses (a), (c) and (h) of section 2 of National Trust for welfare of Person with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.
It includes the following:
- Blindness
- Low vision
- Leprosy-cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
- Autism
- Cerebral palsy
- Multiple disabilities
A person with disability means a person suffering from not less than 40% of any of the above disabilities.
Severe disability means 80% or more of one or more of the above disabilities.
7. Other Conditions to claim deduction under Section 80DD
- For claiming the deduction in respect of the above, you have to furnish a medical certificate of disability from a Government Hospital certifying the disability of the dependant. The certificate needs to be renewed periodically.
- For people having Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up. There are two other formats for person suffering from mental illnesses and all other disabilities.
- People have to furnish self declaration certifying the expenditure incurred on account of medical treatment (including nursing), training and rehabilitation of the handicapped dependant.
- You do not have to preserve the actual receipts for expenses incurred. However you will have to produce the actual receipts in case you claim deduction in respect of payment made to LIC, UTI etc for the purpose of buying insurance or other schemes for maintenance of such dependant.
8. Who can issue medical certificate of disability?
- Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)
- A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital
9. Taxability of Premium Amount Paid in Case disable dependant dies before the taxpayer
In case your disabled dependant predeceases you (that is, dies before you); the amount in the policy is returned to you. This would be treated as your income for the year in which you receive it, and would be fully taxable in your hands.
10. Amount of Deduction under Section 80DD and Tax Saving
- The deduction allowed is Rs. 50,000 if disabled dependant is not suffering from severe disability. Limit is Raised to Rs. 75,000/- from A.Y. 2016-17.
- Deduction allowed goes up to Rs. 1,00,000 if disabled dependant is a person with severe disability.Limit is Raised to Rs. 1,25,000/- from A.Y. 2016-17.
- Deduction not depend on amount of expenses incurred:- Even if your actual expenses on above mentioned disabled dependent relative is less then amount mentioned above you will be eligible to full deduction.
Please Note –
a) Individuals would need to produce a copy of the disability certificate as issued by the central or state government medical board to claim deduction.
b) Insurance policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death.
c) If the disabled dependent predeceases you, the policy amount is returned to you, and treated as income for the year in which you receive it, thus fully taxable in your hands.
Conclusion:- The physical and mental agony experienced by the parents/ guardian of such dependants cannot be taken away but Government of India, National Trust, LIC and other charitable institutions are doing commendable job by reducing the financial agony of such families. It is important for all of us to look for such benefits available and talk these about in various media to take it across as many people as possible. This is a bit of social work which can give relief to handicapped persons and their parents.
11. Frequently Asked Questions on deduction under Section 80DD
Question – I am a salaried person who had a son with hearing impairment. My son underwent an operation for cochlear implantation and I spent around Rs 6 lakh for it. Can I get any tax benefit for the treatment expenses?
Answer:- Section 80DD allows a deduction to an individual or HUF if the person has incurred in the previous year any expenditure on medical treatment (including nursing), training and rehabilitation of a dependant with a disability or paid or deposited any amount under a scheme framed in this behalf by an insurer for the maintenance of a dependant with a disability.
A person with a disability is one suffering from not less than 40 per cent of a disability (as certified by a medical authority working in a hospital or institution notified by the Government), which could be blindness, low vision, leprosy – cured, hearing impairment, locomotor disability, mental retardation, mental illness.
Hearing impairment, for this purpose, means a loss of 60 decibels or more in the better ear in the conversational range of frequencies.
A person with disability also includes the one suffering from autism, cerebral palsy, mental retardation or a combination of any two or more. Section 80DD allows a deduction of up to Rs 75,000 a year and if the disability is severe, up to Rs 1,25,000 a year. Severe disability means a person with 80 per cent or more of the disability. You can claim deduction if your fits into these categories.
Question:- My father is a pensioner and his pension is less than my salary. My sister is a disabled dependant with 85% disability. She is dependant on me. Can I get rebate under section 80DD? My Assessing Officer says that your father is alive and is getting pension; so you cannot claim deduction. Is it true?
Answer:- Your Assessing Officer is not correct. The deduction u/s 80DD is for dependant of an individual tax payer and dependant includes brother and sister of Individual. You can furnish to Your Assessing officer an undertaking from your father that your sister is dependant on you and not on your father.
Question:- I have a handicapped dependant who is my cousin ( Daughter of my mother’s sister). She is completely dependant on me and every month I spend Rs 10,000. She is suffering from 85 % Blindness and mental problem. I wanted to know whether I can claim tax benefit under 80DD?
Answer U/s. 80DD dependant means in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
It is clear that section 80DD is applicable only if the person on whom you are spending are any one of following
- your wife or husband
- your children
- your parents
- your brother
- your sister
- your wife’s or husband’s brother or sister
- your parents’ brother or sister
The Daughter of your mother’s sister is, clearly, not coming under the definition of dependant for the purpose of claim of deduction u/s 80DD. So, you can not claim deduction u/s. 80DD in respect of expenses incurred for her maintenance and medical treatment.
Question– Brother of Mr. Raja (a resident) is totally blind and is dependent on Mr. Raja. During the Assessment year 2016-17, Mr. Raja has incurred expenditure of Rs. 10,000 on training and rehabilitation of his brother. Can Mr. Raja claim any deduction in respect of expenditure incurred by him on maintenance of his physically handicapped brother?
Answer- In this case, all the criteria of section 80DD are satisfied and hence, Mr. Raja can claim a flat deduction of Rs. 1,25,000 under section 80DD (since his brother is suffering from 100% disability).
Suppose in the above case, instead of 100% disability, his brother is suffering from disability of less than 80%, then the amount of deduction will be limited to Rs. 75,000.
(Republished with Amendments)
Author Bio
My parent had an accident 10 years ago which led to limited movement.
I have only just found out about this provision of claiming deductions under 80DD.
If i was to get a disability certificate in July 2023 where it states that my parent has been disabled since 2012, can i use this certificate issued now (issued in July 2023) to claim 80DD for filing my returns for FY22-23 (AY 23-24)?
Or will this only be valid to use from next financial year? (Even tho the certificate states disability is from 2012).
Also form 10 – IA needs to be submitted for both catergories or just for severe disability (>80%)
Any clarification and assistance in this matter would be helpful.
Thank you!
Nice site and good work … thanks for sharing this site… keep it up …
Whether Paralysis is covered U/Sec 80DD ?
How to discontinue availing deduction under 80DD!? New income tax portal is showing error for not availing the same..
I am a tax payer and my mother is a family pensioner. She has 60 % disability certificate. Can I claim rebate under section 80DD on behalf of my mother
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Sir,
Thanks for the explanation.
I have a disabled uncle (My father’s brother) who is completely dependent on me, I have his disability certificate.
Can I claim deduction under sec 80DD?
(In one of the answers i found parent’s brother/ sister can be considered)
Kindly reply
Sir,
My daughter is more than 40% disabled and I have disabled certificate. I want to get income tax benefits. But I could not have any medical treatment documents. Can I apply for it under 80DD without giving medical treatment documents
Hi Sir,
My father is having multiple disabilities/ issues.
1. Due to high diabetic levels , my father lost one eye complete witness.
2. And also my father is having heart failure disease which only 25-30% of heart is functioning.
So please advise me whether i can avail benefit under 80DD section?
What are all documents are required to avail this section.
Thanks,
Rajesh B
i am salaried individual, my sister is deaf and dumb(100%), she is also taking treatment of Seizure disorder.
I dont have her disability certificate but have all her follow up and consultation noted with us, she is taking regular medicine.
I wish to claim under 80DD, but my tax assesse ask for 10 I form and disablity certificate to claim.
Please suggest if i can claim and what documentation would require.
I can arrange for 10 i, but that would take time.
I am physically challenged person working with local of India.i have 85% disability and availing the benefit under sec 80 u.my wife is also physically challenged and house wife having 82% disability.she is totally dependent on me.can I claim deduction under sec 80 dd as her responsibility on my shoulder
Sir, My wife met with a road accident 10 years ago. She suffered multiple fractures and head injury and was in coma for a week. She is currently going Ayureved treatment for pain in her limbs and Allopathy treatment for Bipolar / Depression. How do I claim tax rebate on expenses incurred by me.
Sir
When I went to a Govt. Hospital for a certificate for my father’s hearing impairment (82 years old) with approximately 85% deficiency, the Govt. Doctor told me that it is natural wear and tear and as such certificate for the purpose of 80dd will not be given. Is it correct? Another Doctor opined it can be given. What is the legal position and who can give the certificate. Whether CMO though not ENT can he give?
Under section 80DD, The medical expenditure of dependent can be deducted by DDO?
I am a salaried person, my son is a patient of Cerebal Palcy and also I have 100 %disability certificate from CMO . I only want to know that ,is the expenses receipts are compulsory for claiming rebate.
I am a pensioner and my mother 89 years and recently suffered brain stroke and unable move. I am planning to admit are in private nursing care old age home, is it possible to get tax exemptions?. The Dr is MD in neuroscience and in pvt hospital will provide necessary medical certificates
Please clarify.
Thanks
V.K.Raju
My Father’s sister is a disabled dependant with 85% disability (Mentally as well as blind). She is dependant on me. Can I get rebate under section 80DD? As per section : “dependant” means—
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
Neurologist having a degree of Doctor of Medicine (MD) in Neurology. This doctor should be from Govt hospital only or private doctors with MD degree can provide certificate.
After my father death, My sister is dependent on me (less then 40%) but there is my father name on my sister medical certificate. Can I claim under 80 DD ? If yes, do I need to show her medical bills also or medical certificate is enough to get claim ?
Please advise.
Sir,
I had spent around 4-5 lacs in ear attack failure of myself, I was not able to hear from one of the ears, it was 90 dcbl lost, so how much I can claim on this basis?
Thanks a lot waiting for your reply
Sir, my father is of 72 years, retired & is orthopedic handicapped person and is dependent on me ( less than 40%)
I have been spending amounts almost 6000 to 10000 depends upon regular variations in medicines as prescribed by the Doctor
Under which section I have to claim benefits of medical expenses being incurred because so far as my knowledge is concerned as after referring it several times, only preventive health checkup is allowed of Rs. 5000/- else there is no deduction of expenses is allowed for Individuals towards expenses incurred for Dependant Parents having age group 60-80 years
Please clarify
Sir,
I am filing ITR online and have claimed deduction under section 80 DD. Have I to attach Form 10-ia issued by competent authority if so how.
Hello Sir, Please clarify whether the deduction of 50000 and 100000 raised to 75000 and 125000 respectively is as same as if the he salaried person himself/herself is disabled as for the the dependent of the salaried person?
Sir,
My father suffered a paralysis attack on the right side and now he cannot speak, walk or lift his right hand. He is bedridden now.
Can i claim deduction U/s 80 DD?
I am taking care of him
hi my son is 8 months old and diagnosed with Severe microsephaly by private hospital. what is the level of severity?
can i get tax exemption under section 80DD
please help with details.
Hello,
My son is 2.4 year old now. He is diagnosed with Autism at risk when i he was 1.6 year old. Since then, I am spending around 15K-20K for ABA, OT and Special Edu. Am i eligible for deduction under section 80DD?
TO AVAIL 80DD BENEFITS,IS THE DISABILITY CERTIFICATE ENOUGH. MY SON IS HAVING HEARING LOSS OF 73%.WHAT CAN I DO AVAIL 80DD.HE HAS NOT UNDERGONE ANY TREATMENT DURING THIS YEAR.
MY SON ANANT JOSHI SUFFERING FROM CEREBRAL PALSY ,DISABILITY MORE THAN 66%,ALSO I AM HAVING CERIFICATE OF GOVT OF MAHARASHTRA, IN CASE OF THE ABOVE WHENTOFIL UP FORM 10IA
To claim 80 dd disability certificate enough or still needs to show the medical treatment, why I am asking this because my brother physically handicap currently we are not undergone any treatment
80u and 80dd deducted same time
Sir l am govt employee and my wife also a govt employee. My wife is a physically handicapped.can l deduct her medical expenses under 80dd.her disability 50%
80u also deducted 75000 per year.
I am a salaried person and i have two uncles(Dad’s Brothers) who are completely blind and they are dependent on me.
can i get exemption of 250000.00 ( for two) or only Rs.125000.00
My son dependent suffering from neuro disease with 40% getting all medical expencess from deptt as yearly expencess is 50,000 all reimbursed.May I avail further tax rebate under 80dd
Hi Sir,
Can I claim Medical expenses for disabled (80 DD) for my fathers brother’s wife (My fathers Brother is no more and they have no children) so she is depend on me. she is bed ridden and every month I spend about 18,000/-
Pl help