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
both husband and wife are govt. employees, and they have a mentally retarded female child. The doubt is whether they both can claim for a tax deduction according to tax assessment form 9 b? ie can both husband and wife can claim tax deduction on each of their income?
my father is 70 year old 80 % handicapped and pensioner 9000 per month, my mother is in job can i get deduction tax benefits under 80 DD
Dear Sir,
My one Eye is totaly blind from age of 4/5 Years, now I am 40Years, Please confirm, Can I get any exemption from Income tax dept. if i get the certificate from civil hospital
S. Wale.
I am Govt employee. My son is mentally retarded. Can I eligible for Income tax exemption.
if any persons have a dependant handicapped child. No any expenses on medical treatment or insurance. can he claimed deduction u/sec 80DD for regular maintance.
My father is a pensioner and his pension is less than my salary.
My father has a Hearing impairmentwho is partially dependant on me with 65% disability
Can I get rebate under section 80DD?
My son is mentally retarded person and I am availing income tax rebate .I glad to know that insurance policy for mentally retarded person comes under u/s 80DD.
Sir,
One of my client having salary income. Company has given 80DD relief for Rs.17000.
As per my Knowledge Deduction U/s.80DD is applicale Rs.50000 what is Fact ? In my
Income Tax software i can not enter deduction of Rs.17000.
Hello Sir/ Madam
I am a salaried employee. My father is 83 years old and he was diagnoised with 80% hearing impairement and Government Doctor/ Surgeon from the district hospital issued a disability certificate. Now to avail deduction u/s. 80DD for expenses on medical treatment of disabled dependent, what other document/ record I should obtain? My father does not have any kind of insurance and he is only covered under mediclaim policy through my employer.
Thank you in anticipaiton
Regards
SK Pandith
Sir,
I have disability less than 40% than in which section I can claim deduction.
Thanking you
Dear Sir/Madam,
My mother is 80 years and diabetic. She lost >80% sight, due to diabetic related complaints and as per dacotor, no chance of recovery. Hence can I claim the expenses incurved under 80DD, with a dactors certificate. Please suggest.
Regards
I have to urgently undergo a transplantation and my school friends have decided to contribute around 50,000 rs to 1,50,000 each towards collecting 10,00,00 required for the operation. I want to know, me not falling under the efinition of Relative, will they be eligible for deduction undet the act ? The Act saya the the dependant should be ‘mainly’ dependent on this money for treatment which is also my situation as my only source of income is fathers pension and not Savings or investment or in other words i am solely dependent or mainly dependent on this money provided by friends. Also would it help if i provide documentary support of the use of money for my surgery to the tax authorities ? Anyway i can claim that this money would have been given to charitablee institution which the would have gone towards saving a non relatives life, …so it is all the more reasonable that they should be allowed deduction as presents itself as a case of genuine and emergency medical help? Your reply will be extremely valuable to me ?
Pls suggest that knee replacement surgery expenses of dependant parent can be considered for duduction u/s 80DDB or any other section?
. I am a salaried person & my father is disabled & paralysed since 2-3 years. His one side is paralysed & one leg & one hand doen not work. So he is all dependent upon my family only. I am the only person in my family to earn money. I spend Rs 11000/0 PM for my family which include maintance & medicines also. I want to know how can I claim the deduction under 80DD. I’ll have to furnish Form 10IA. But apart from the Form 10IA do I need to furnish any bills cause we do not have any bills to produce. I just transfer money to my fathers account every month for my families maintanance & medicines(Ayurvedic, for which we dont get any bills). Pls let me know if I can get the deductions without any Bills?
My brother is 80% handicapped. I am having certificate issued by CMO in 2005. I just want to know in how many years i have to reissue new certificate from CMO or old certificate will work life time. I want to use certificate for 80DD only
Meaning of SLUM SALE.Tamilnadu VAT is applicable to Wind Mill Machinery or not? If VAT is passable, send the case laws and amendment to my mail ID.
Thank You.
sir
my mother is a paralytic with impaired brain.She is widow and gets pension around Rs5000 per month . For medical care and nursing attendant i spend Rs20000/ month and am passing difficult phase in life.Can i claim a tax benefit under 80DD etc. Govt hospital has given a certificate also but my DDO refuses to allow any tax benefit with a plea my mother is getting pension.. pl help
my child is suffering from cancer so please give me income benefit so what is the amount.
Dear Sir,
My doughter has a downsyndrom. Rated 68%
We have recently took admission in special school and also some time we have to took her speach therapy. I have also applied for jivan adhar policy from LIC.
My question is,
1. can i claim deduction under 80DD on schooling n LIC policy?
2. how much i can claim?
pls reply
my mail id jkhadikar@yahoo.com
thanks
my father and mother are pension holders and with severe disabilities as specified . can i claim 80DD and can they be treated as dependants on me
My father is dependent on me and is suffering from multiple schlerosis. Is this one of the approved disabilities.
He is filing his tax return and draws pension. In such a situation is the definition of dependent can include a person who has taxable income and is filing a return.
I am PH person with 75% disability physically. For tax exemption, is submitting the certificate not enough?
One of my client spend money on his mother illness in previous year and huge amount of bill came from the Hospital. The client is most honest senior police personnel. He paid some amount to hospital and requested to grant him instalments so that he can pay the dues in full, which hosptial agreed and released his mother in february. In 1st week of March his mother died. Client paid amount in full by end june. now for this previous year (during which he has not incurred any expenditure on ill ness of his mother, but has paid instalments for the xpense incurred in earlier previous year), whether he will get any benefit under this section.
My father is having vision in only one eye. Can i claim benefit under 80DD? How disability is calculated? What all documents will required to get exemption from employer?
I have two sister’s dependent on me. Elder sister is having hearing impairment problem from childhood. She is deaf and dumb. She is married but not staying with her husband. I am having full responsibility. From last 4 years she is having psychological problem also.
Second sister is having short term memory loss problem. She is unmarried and staying with me. Does short term memory loss problem comes under mental retardness?
My father is retired and I am only the earning person.
So can I claim for sec 80dd deduction. Which certificates needs for the same.
How much maximum amount i can claim.(I mean 50000 or more).
My father is a pensioner.His pension is less then my salary.I have paid rupee 50000 on his medical treatment from my salary.Can i claim for deduction im my I.T. return for these expenses.
my father’s pension is less then my salary.Can i claim for medical benifit,for medical expences paid by me u/s 80DD(financial year 2011-12).
Can my grandmother be considered as a dependant?
Pls suggest that knee replacement surgery expenses of dependant parent can be considered for duduction u/s 80DDB or any other section?
Pls suggest that medical expenses of dependant parent can be considered for duduction u/s 80DDB or any other section?
My father is physically dependent with 80% disability. How can i claim deduction u/s 80DD and upto what extent. In which schemes should I invested for claiming deductions? Is deductions are limited upto amount of investments?
My father is in bed for the last 10 months or more. Every month I am spending nearly 10000 rupees for his treatment. He is totally dependent on me. Can I get a certificate and how to? It’s not possible for me to take him to a Govt. Hospital and get a certificate due to his condition. Please help. Susanta
Sir,
I want to know am i eligible to take benefit of tax rebate of my parent’s lic. Because he is unemployed now and i have to pay all his lic’s premium.
My child is 80 % disable I am taking 80dd exemption . My wife is also govt employee can she claim it ?
Dear sir,
I am salaried person. Can i clain tax benefit on expenses incurred on medical expence on my dependent parents. My mom is physiactric patient & presentystaying in chaitnya mental health care center. Her monthly expense is rs 15000 aprox. Pls advise can get any tax benifut on this expence.
My father is a pensioner and his pension is less than my salary.
My father is a Hearing impairment dependant with 85% disability as well Cancer.
Can I get rebate under section 80DD or 80D? If yes, then whar are documenst i have to produuce for claim.
Hi
I am a salaried person & my father-in-law is disabled & paralysed since 5 years. His one side is paralysed & one leg & one hand doen not work. So he is all dependent upon my family only. I spend Rs 10000 PM for my family which include maintance & medicines also. I want to know how can I claim the deduction under 80DD
I am a retired bank employee and filing income tax return. My son is mentally retarded duly certified by govt.Doctors-Disability more than90%(PERMANENT). But he is in a temporary and private job of Rs. 4500/- PM just for his rehabilitation.
Please guide me if I can claim deduction u/s 80-DD. Thanks and warm regards.
Hi ,
i want to know how to measure 40% and 80 % disability.
I m handicapted suffring from POLIO pls let me without expendite any amount can i get tax benefit u/s 80 u Rs 50000/-
My daughter is one year old and she is physically handicapp by birth. Not having left hand below elbow. Can I get the benefit of income tax.
Granny
I give monthly fixed amount to my Granny (Dad’s mother) who is 86 years old, for her medication (diabetes and cataract patient) and daily expenses. Does this qualify under any tax deduction. The government should consider such genuine cases!
Its first time visiting your site. Will for sure spend some time here. Article is well compiled and informative. This blog gets into my fav .
my elder brother is mentally retarted and depended on me . my wife and my self are tax payee , can my wife claim the tax deduction under 80dd if i dont want to avail. kinly give me the ref. as the ddo is not allowing us.
thanks
My Son has a one Kidney in which functioning is only 11%. I have spent more than 1 lac expenditure on this. Does this qualify for the rebate.
Sir, I am a salary person and I am 40%Disable. Can I claim the amount of Rs.50,000 deduction under 80U
Hi, I am salaried person & my father is physically handicapped due to intertrochanteric fracture left femur and his disability is permanent and 15% . Can I get benifit of incometax
Hi…
I am a salaried person & my grandmother is disable and she is dependant on me.
In this case i spend more then 8000 per month maintance & medicines.
I want to know how can I claim the deduction under 80DD
Please let me know can i avail the 80DD facility.
thanks
Akesh
I am a salaried person & my father is disabled & paralysed since 2-3 years. His one side is paralysed & one leg & one hand doen not work. So he is all dependent upon my family only. I am the only person in my family to earn money. I spend Rs 11000/0 PM for my family which include maintance & medicines also. I want to know how can I claim the deduction under 80DD. I’ll have to furnish Form 10IA. But apart from the Form 10IA do I need to furnish any bills cause we do not have any bills to produce. I just transfer money to my fathers account every month for my families maintanance & medicines(Ayurvedic, for which we dont get any bills). Pls let me know if I can get the deductions without any Bills?
I am a Physically Handicapt 50% Disablity suffering from 3 years Dawuri case Mantenence case .Whate we will do asking my wife per month 8000/- now I am Un
employ dayli wase jobs are drop for case problum.please help me sir and give me gaidence thank u sir.