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
Hi Sir , my question is that we can only claim deduction in case we have a policy or medical treatment for them ? as my sister is mentally retarded but we do not have any policy etc for her , so is there any other way to claim the benefits ?
I have a son who is diagnosed with 50% Mental Retardation. Please let me know what documents do I need to furnish for his maintenance or training expenses for claiming tax benefits
sir My mother is a person attacked by strokes and one hand and one leg(left side) is not functioning properly . i am buying medicines for her regularly and doing physiotherapy also. Can i claim the same as IT deduction
Sir can you elaborate on mental retardation
Hello Sir,
I am having a daughter 1 year of age and she is suffering from down’s syndrome. It is a genetic disorder menifest as mental retardation along with other disabilities too. I have gone through your post and 2 acts mantioned by you in your post which just describe
sir,
My is recently having surgery of hip bone fracture and have replaced hip join ball of left leg and also same type of surgery done 1 and 1/2 year before for right leg and not able to to walk he is bed redden completely on bed kindly let me know do i claim benefit Under Section 80DD or Under other section
Regards
Deepak Keshav Deshpande
9870010989
Sir,
I have claimed benefit under Sec 80dd but my employer has not given me form 16 for the year 2015 – 16 stating that i have not paid any tax
I have a Disabled persons & my wife is also disabled, but not medical expenses of her, so, I get the benefit in my IT Return? if possible you may advise how can I get this type of benefits.
My wife is a cancer patient & i dont have ant medical insurance policy. I pay every month for his medicines & testing. Her treatment is going in AIIMS, delhi. Can i get deduction on her treatment. If yes then what need to be submit?
I have a son with severe hearing impairment and is implanted with cochlear implant. Can I claim rebate under 80 DD for my self as well as my HUF in the same year. ?
Sir my father has bipolar condition (psychiatric condition) of about 85% and even more along with traces of Parkinsons. Can i claim this exemption?
Sir, I have twin sons, both suffering from Cerebral Palsy. The extent of disability of in case on one is 50% and that in case of another child is 85%. Can I claim deduction for both?
Hi sir, I have a Severe Hearing impaired 7yrs child & last 3 yrs back we went for cochlear implantaion & I have bills for three thousand in this year. Plz confirm can I claim for 1 lakh exemption under 80DD based on disabled certificate.
Hi Sir, I have a handicapped dependent who is my Aunt( My Mother’s sister ) who is not married and senior citizen, every month i am transfer some amount for her maintenance and medical aid, Can get exemption for that amount ?? if in case what are documents I need ti submit ??
Sir,my mother in law ( husbands mother) is my dependent.she is a handicapped with 85 percentage disability.she ownly depends on me. Wheather iam eligible to show exemption under 80DD.
Pls clarify my doubt as soon as possible.
Thankyou
From
Sruthi
Sir, I have a son with no left hand fingers working. There are literally no fingers or no bones..
Unfortunately the certificate issued by the CMO Govt Hospital is only 20% Disability, which I honestly believe is not correct.
Can I avail the tax benefit under 80DD?
Regards
JACOB
Hello Sir, My Grandfather is dependent on me, and has vision and hearing disability both more than 80% as per CMO certificate. We are HUF, can I claim tax deduction under 80DD?
Hi Sir, My Father brother who is 80% disabled and he is my dependent. I’m spending almost a Lakh under his medical treatments. I want to claim this under 80DD is it applicable for me? 4 yrs back my father expired and he is completely dependent on me. Please guide me.
Sir, my daughter is suffering from MDR TB and she has been under medical care & treatment of Dr Udwadia of Hinduja Hospital, Mumbai and other local MD soecialist Dr. She has to take daily heavy doses of medicines & injection, which are pretty costly, besides, periodic diagnostics tests & reports. I am a salaried class person working in a ptivate firm. Can I claim deduction under section 80 DD ? pls guide.
I have a dependent parent for whom i undertake mental illness (Phsychiatry) treatment for a condition called Schizophrenia. Is this covered under this 80DD/80DDB for me to claim exemption? I am spending money for private treatment. what are the formats involved and how do i get the necessary documentation done for this case if exemption is available. would be happy if you can answer this. – Ram.
I am a father of autistic child, i am a salaried person. Please guide me where shall i approach the obtain the certificate and what else i have to produce to obtain tax rebate.
I am a Govt. employee. My self handicapped with 50% and my is also Handicapped with 85%. Can i get exemption for me and my son also?
i m a govt employee ,my father has undergone bypass surgery on January 2016 .no insurance policy i hve.can i get income tax exemption for aforesaid condition?plz reply sir
SIR. My elder unmaried Brother is 60 year old. he has blindness 75% declared by medical board. I am PGTeacher in navodaya vidyalaya. Can I claim for relief U/S 80DD
My Sister is married and she is suffering from blindness.
Can I be eligible to buy 80DD based premium from authorized company for like LIC for my sister and claim such benefit ?
Sir, I have two mentally disabled dependent ie wife & daughter with 70% Can I claim for tax benefit for both the person from my income u/s 80DD, if yes how much please explain or any other way to get tax benefit.
Thankyou
Sir/madam,
Only one my daughter has a mental retarded child since by birth. I have come across several tests from neuro doctors and we’ll known phycologist has been mentioned 76% on her I test on her medical report at the age of 5 of my daughter. Now she is 18+. Whether I have to again for I test. Now also she is unable to do her any work except walking and like one year child and could not speak or identify anything. On 80dd what deduction I
can eligible on my IT filing on 2015-16. Please advice me on my given email id. Thank you
Hi,
My father has spinal cord herniated disc problem for which frequent MRI and medicine is required. Can we claim this under section 80 DD? Please reply….
Dear Sir,
My son suffering from Locomotor (Neurological) Disability with 75% (Severe). I want to know that How much rebate in income tax for the financial year 2015-16.
Hi
My mother in law has polio by birth with a disability certified by CMO as 50% and now she is taken care by me and my wife only.
We are incurring medical expenses and other expenses related to her treatment.
Can i get the exemption in this case as she is not in direct relation to me.
Sir,
I am Retired state government employee and now i am getting Service Pension.
My Daughter having disability of polio from that I am getting of AY 2016-17 is Rs. 75,000/- by section 80DD and recently my wife got blindness. If i can get same for two persons it is possible to get benefit.
Hi, my father is a state government school teacher.He underwent radical prostectomy(surgery for removing prostate gland as he was diagnosed CA of prostate)last year.we spent almost 2.5 lakh over the surgery.Is he eligible for claiming under section 80DD..Kindly let me know..
My Mother underwent the operation of Uterus removal. we paid sum of total 35,000/-
how can we claim the tax relief.
please reply me on s.undre10@gmail.com
My wife is railway employee my daughter having muscular disorder and having 80 % disability certificate issued state government Medical officer issued as per rules.
is any document other than the certificate issued DMO to be produced to claim under 80 DD
I am a physically handicap 70% and am emp state Governament Sir whats a benefit for medical rembersment
Sir,I am PH person 50% physically disabilty.For tax exemption for 15-16 this year Rs 50000 or 75000 kindly reply by me
My daughter is down syndrome and she has is 50% mentally retarded. Can I claim for tex rebate in income tax? A medical certificate from school of special child can be valid for claiming the tax rebate?
Thanks
I am a central govt emp orthopadically handicapped (65%). I want to know maximum allowed deduction for 2015-16 under 80U. Is amount expends on purchasing callipers and crutches(helping aids) can be used for tax relief?
res sir ,i am father of a son having severe disability,this year unfortunatily he died ,i had applied in my componey for tax rebate ,now what i have to do?shoud it be returned to componey or something else?plz guide me.
Dear Sir,
Kidney Transplant case my wife I am give one kidney to my wife exp about almost yearly 96000/- how much exempted pl. do the needful
This is useless when there are so many questions but not a single response from Sandeep Kanoi. I wish he should atleast respond else better not post any such articles and keep people hoping.VERY BAD
Is Dyslexia covered under mental illness for deduction under section 80dd?
Hi,
My Father is having EYE Retina Detachment and lost vision in left eye. Same problem for the 2nd eye abd he underwent Ayurvedam treatment, we spent around Rs 30K, can i claim for tax exemption under section 80DD.
Thanks,
Srikanth
I m disable with right eye lost in accident.Govt. Hospital issued 30 % certificate to me.
Also I give maintenance to my wife for Rs.3500/- per month thru court.
How much of tax benefit i get.
i have my brother who is dependent on me ans is mentally retarded.
i have no medical bills in my custody for the one i have incurred while treating during last year. can i claim the exemption limit under section 80dd on my income for the expenses incurred last year without actual bills, which has been lost/destroyed.
My mother who is suffering from 40% blindness. I am doing these expenses as out of pocket expenses and not from any insured policy. Can I claim Rs.50,000/- under Sec-80DD?
Please advise. Thanks. Minesh
– 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#comment-1512918
I have incurred a expense for my grandmother in FY 14-15 who was hospitalised for almost 10 days due to kidney failure and was ulimately detected with pneumonia.She was a senior citizen and dependent on me since my father is retired.Due to age and pneumonia she expired in Oct 14.I dont even have mediclaim for her to claim expenses back.It a huge cost.
Can i claim benifit in Sec 80DD/80DDB ?
Hi,
My mother is paralysed for the last 22 years & she is dependent on me. Father is not a pensioner & has no income. Am spending Rs.15000.00 each quarter for her daily & regular medical expenses to date.
Can I claim these medical bills, consultation costs of Doctors, Injection costs which as high as 22,000 per annuam for her bones strength under Section 80DD of IT act
Hi,
I have a handicapped sister, who is married still we are staying as a united family, she is checking hospital with respect preganancy medics. am i eligible to add and show those expenses under 80DD in my tax.
Hi,
My father is dumb and deaf..disability is 80%. he is not working and no income…completely dependent on me..
question
1. can i claim this 75000/-
2. If yes, should i submit any bills? he has a certificate from Govt hospital. and also he is getting pension from govt – every month 1200/- rs.
3. If i want to submit bills, what are all the bills i can submit – like consultation, medical, nursing…
Please check guide me.