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
Dear Sir
My mother is 62 years and diabetic. She is insulin patient, daily taking many insulin units. The Expense of medical treatments is much in amount , capturing bills. Can i apply for 80DD. Please suggest.
Whether I can claim deduction u/s. 80DD in respect of expenses incurred on medical treatment of my Father in Law who is completely dependant on me and is suffering from Hearing Impairment
Dear Sir
Both my parents are dependent on me. My mother is a schizophrenia patient (related to mental illness). As per income tax under 80DD it is clear that I can claim for tax benifit.
My father is an addict. i have kept him in rehabilitaion centre. Could you please guide me if I can get a tax benefit from this.
Your guidance will be of a great help to me.
DEAR,SIR
MY FATHER HAD A SURGERY LAST YEAR & EXPENSES WERE ABT. 265000 SO I WANT TO KNOW THAT MY FATHER GET THE DEDUCTION OF HIS HOSPITALITY EXP. UNDER 80DD SECTION OF INCOME TAX FOR HIS CURRENT YEAR INCOME TAX RETURN
My father is suffering from severe osteoarthritis and rhumaticarthritis..can I claim under 80CC?
Would you please clairfy whether a wife can claim tax benefit on medical expenses incurred on her fatherin-law (Husband’s father) under IT Act 1961?
I have undergone angioplasty in Nov. 2015 whether I am eligible for tax exemption as I got reimbursement for expenses incurred from my employer. I am bank employee under which section I am eligible for tax exemption as the amount is added as perquisit in my income
I have undergone angioplasty whether tax example on is avaliable to me
I myself is physically handicap 60% but having no actual medical expenses, can I claim under this section 80 dd.
hi sir,
i have sister show is totally bed rest and medically unable to do anything by her own. she is handicapped more than 80%, can i get LIC for her, the one mentioned above and can i claim that in my return filing ?
Husband and wife are government employees, having two physically challenged children (more than 50%). For filling income tax return, father and mother are eligible for getting rebate under section 80DD ie. expenditure on medical treatment (Rs.50000/-)of physically challenged. I want to know whether the two government employees are eligible for getting rebate separately under section 80DD or not. Please let me know.
C.Sukumaran ,
Nagercoil
my father is bed ridden for 3 years due to paralytic stroke. i am incurring Rs 5000 per month for his nursing expenditure. He is dependent on me. Ca n claim 80dd ?
Sir,
My wife is 75% visually disabled. I got the disability certificate from
GOVT Hospital on 15/02/2015. Am I entitled for tax deduction under sec 80DD in the FY 2014-2015. If so what are the other proof of expense required.
kindly inform me
Thanking You,
Yours faithfully,
Anjan mallick
i have one proprietory firm…if i wil pay sum amount to my emoplyee for serious injuries says 2 lacs..can i saw this expenses as allowable in my books of a/c?
I am a retired officer from a PSU Bank drawing Pension. My wife undergone a major operation for which I spent Rs. 3.90 Lac. The Insurance Co. reimbursed an amount of Rs. 1.60 Lac. for which I am paying annual premium for the coverage of Medical exp. to that co., my Bank also reimbursed Rs. 1.42 lac for reimbursement of the Medical expenses. Sir, what is the perquist value in this case? and on how much amount I have to pay IT. Pl. let me know. Thank You sir.
cbs
I have a physically handicapped elder brother with 60% physical disability.He is having brachiel plexus injury in which his right arm is totally disabled.He is also unemployed and fully dependent on me.He has a proper valid physically Handicapped certificate issued by Social Welfare office under Gov. of India.
Am I will eligible to get income tax rebate undersec 8DD.
I am salary employee. My son was handicapped of 100% and he died on Nov 2014. So how much amount can be deducted in the annual Statement (income Tax) of 2014-15.
It is observed that no answers are being provided by the experts. People questions are simply posted on the site.
Iam a Physically Handicapt 70% disablity both legs parmanent. Sir i want to know benefit of income tax all relief. Please tell me. 09812110702
Dear Sir,
My son is having 80% disability and the required Disability Certificate is available. How much dedn under sec 80DD will be admissible to me under below situation?
I get about Rs 40,000 reimbrsment from my employer on medical expenses and TDS being deducted on amount beyond Rs 15,000.
I spend about Rs 70,000 more on nursing care by employing helper and other care which is Not reimbursed by employer. I do not have proper voucher for this nursing part.
How much deduction will be allowed for me under above situation.
I need your valuable clarification as financial year is going to end.
S K Mishra
may pl confirm if 80 DD includes 80 DDB. i.e. if deduction under 80DD is claimed for Rs 100,000 can we still claim deduction under 80 DDB provided both Certificates are available ?
9490234074
I have a son who is suffering from 40% blindness. I am doing these expenses as out of pocket expenses and not from any insured policy. Can I cover the regular medical expenses incurred on him for the treatment and checkup and also the medicines purchased for the treatment.
Please advise. Thanks. Nilesh
my father is bed ridden for 3 years due to paralytic stroke. i am incurring Rs 20000 per month for his nursing expenditure. He is dependent on me. Ca n claim 80dd ? Ia m in 30% IT slab. Please reply
My father is bed ridden for last 3 years , I am incurring an expenditure of 20000 rs per month for his nursing expenditures. He is completely dependent on me. I am in 30% slab It. Is it possible to claim 80DD for this expenditure, Is so what should i do ??
pl help
Below schemes are discontinued…
Jeevan Aadhar and Jeevan Vishwas
my child is 91 % Disable certificate given by valid medical officer,
what are the documents need apart from medical certificate for claiming rs, 100000 under 80DD
SIR, HERE IN HYDERABAD, THE ASSESSING OFFICERS ARE ADDING BACK THE DEDUCTIONS CLAIMED UNDER CHAPTER VI-A AND RAISING HUGE DEMAND. WE CANNOT PREFER ANY APPEAL AGAINST THE ORDER/INTIATION U/S 143(1)(A), THEN WHAT IS THE REMEDIAL PRIOCEEDURE. ACTUALLY THE ITRS ARE CALLED ANNEXURELESS AND EVEN IF WE ENCLOSE I0-I, 10-BA,THE INWARD CLERKS ARE TEARING OFF AND NOT ACCEPTING THE SAME. HENCE, WILL YOU PL. BE KIND ENOUGH TO SUGGEST ANY REMEDIAL ACTION FOR THIS, SO THAT THE ASESSEES/TAX PAYERS CAN HAVE A SIGH OF RELIEF IN THIS ASPECT.
THANK YOU
K.PREM SAGAR
sir i want to get relief uderbb this.I am heart patient my father & mother also patients.what documents needed to get this?unde
My daughter is diagnosed with Thalassemia Major non-curable decease surviving monthly blood transfusion.
and my son has low vision – 90% disabled.
Is the 80DD exampation 1-lack per dependent or per assessee.
Pls help. Thank in advance.
Is dementia also part of the mental disability. Where is the disease defined? Can you please suggest?
Thanks
Gaurav
Very useful information sir.
Sir,
sir my daughter is having a single kidney by birth what % of disability count as a handicap
I have gone through all the details and the replies of people.
Does any body have a proper elf declaration letter or a format which is needed to be given along with the disability certificate that I Mr.xxx is taking care of my family person who is dependent on me.
Dear Sir
Please clarify whether a spouce (female) can claim tax benefit on the medical expenses incurred on her mother in law (Husband’s mother) under IT Act 1961?
Regards
Kamal
Hi My Mother has lost vision of one Eye and other eye vision is also not clear.
Can I avail the benefit.
Please clairfy whether a wife can claim tax benefit on medical expenses incurred on her mother in law (Husband’s mother) under IT Act 1961?
Thanks
Kamal
Sir I am central Govt employee my son suffering with autism problem who is under going speech therapy, occupation therapy, in private medical practitioner lost year I had submit only disability certificate for tax rebate and I got Rs 50000 as tax rebate . But this year my clerk asked medical expenses certificate from government medical practitionerl weather it is necessary clarify
Sir, My son is suffering from down syndrom (M.R.). He is going in a special public school for informal education/training/speech therapy etc. I am paying Rs. 70000/- annually on the above for school fees. Can I claim deduction under section 80 dd on this account.
Dear Mr. Subramanyam.
Since your daughter is autistic and have more than 80% disability, you will be eligible to claim Rs 1,00,000/- out of your total income u/s 80DD irrespective of your spending on her speech and medical treatment.
my daughter suffering with autism with more than 90% disability certified in the month of august 2014. we are providing medical treatment and speech therapy…
while filing return in 15-16 (for fy & py 14-15)
1) am eligible to claim deduction of 100000/- U/s -80dd
2) if not so 100000/- what is eligible limit.
let me know the best possible solution
regards
subramanyam
sir my son having a single kidney by birth last one month what % of disebility count as a handicapt
I am a salaried person having a son suffering from autism. He is 5 years old. Can I get any tax benefit for the expenses incurred ????
Kindly reply on mail
1) To get exemption towards 80DD, what document needs to be submitted to the company.
2) Is the document dated must be within the same Financial year for which claiming the tax exemption.
My wife met with an Accident on 6/7/2014.I have expand Rs. 180000 for her treatment (injuries and ortho injuries) ,Can the expenses are covered under any kind of income tax rebate.
I have a daughter having 75% permanent mental retarded disable which is sever.I want to know how much amount I may deductued from my income tax calculation Rs. 50,000/- or Rs.80000/- or rs.1,00,000/-? Reply me on above said mail. – See more at: https://taxguru.in/income-tax/deduction-us-80dd-in-respect-of-expenses-incurred-on-maintenance-medical-treatment-of-a-disabled-dependant.html#sthash.r3XulZah.dpuf
Dear sir,
i am sallaried person, Can i claim tax benefit on expences incured on medical expence on my dependent parents. my father is 80% physicaly disabled he has certified from civil surgeon about it . my mother is alxo mentaly retired . she has also certified from civil surgeon about her disability. i spend rs 5000 for both medicine.
so can i claim for sec 80dd . how much maximum amount i can claim.
pls reply as early as possible
sir my wife was kidney transplanted patient and fully dependent on me. is kidney transplanted patient comes under physically challenged/handicapped?
if so up to which percentage of disability?
thank you very much sir .
How much tax deduction is done on hospitalisation charges of operation Total Knee Replacement of single woman by vidarbh kokan Gramin bank Akola,Maharashtra
I have a daughter having 75% permanent mental retarded disable which is sever.I want to know how much amount I may deductued from my income tax calculation Rs. 50,000/- or Rs.80000/- or rs.1,00,000/-? Reply me on above said mail.
sir, i am salarried employee, and my father having glocoma (eay probelm), every month i have to pay 3000 rs for medicals expencess for eay drops, i am eligibel to get 80dd benift.
regards
raghu