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
Hello Sir/Madam
My brother is a mentally retarded patient of 29 years. His condition is non-progressive and has been certified with 75% mentally retarded as per his Disability certificate from the Dept of Rehabilitation of Disabled, Tamil Nadu. Myself (younger sister) who is the only supporting member of the family want to claim under section 80 DD. I have all the necessary bills and his treatment costs upto Rs 5000 per month. When approached to the Rajiv Gandhi Govt Hospital Chennai none of the doctors accepted to certify. When approached to the Dept of Rehabilitation for Disabled in Chennai they mentioned that only the father or mother can claim the 80 DD tax exemption and not the sister. If so I need to become his legal guardian and they mentioned that it is not that easy to change to a local guardian just like that. Please help me give clear insight on whether I can claim for the 80DD Tax for 2017 or the upcoming years. Also please let me know in what way I can approach them in order to get the disability certificate attested. My email id: annemath16@yahoo.com
My Mother underwent the operation of Uterus removal. we paid sum of total 65,000/-
can we claim this U/s 80 DDB.
Please reply to my mail ID sivaib@yahoo.com
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
I want to say a very big thank you who help me out with my mental condition, my family and I never believed I will be fine and come back to my normal senses again, anyway all thanks to my wife for contacting great doctor EHIS Uribhor, great doctor Uribhor sent her a medicine to give me for a period of one week only and All thanks to God now that I am fine and forever be healed. I have come back to normal senses and I can do all things and resume work now, contact same doctor on {EHISOJOKU@HOTMAIL.COM} and he will help you too…
my sister marred but handicap & husband is handicape i help but 80DD income tax dedction
Can anyone guide me about how to apply deduction of 80DD (dependent parent with disability) in online ITR? I see system doesn’t allow to calculate decution in online ITR.
DO we need to follow any specific procedure?
please provide the reference for you below lines
You do not have to preserve the actual receipts for expenses incurred for 80DD
Dear Sir,
please provide the reference of clause where from you have taken the below lines.
“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”
LIC has discontinued Jeevan Vishwas policy for mentally retarded. So now we have to invest in which policy to claim this benefit.
HELLO, My father in law is 90 percent disable and he is fully dependent on me. should i claim for deduction under section 80 dd
Dear Sir,
My Father is disabled person (60%). Since my taxable income was less than 2.5 Lakhs last year (FY:2015-16), i have not mentioned the same in return. Is it possible to claim the same this year? I have paid Rs.50,000/- for both medical and other expense.
Kindly guide me to file the return through online
Hi,
My brother is handicapped( Lost his right hand in an accident ) with 80% severity. Can I claim tax deduction for the same?
I am a salaried person. Dad suffering from 60% arthritis. Someone has recommended me for Ayurveda Treatment that can help benefit in disease.
1) Is Arthritis considered under Locomotor disease that gets covered in National Trust Scheme?
2) Is Ayurveda Treatment cost covered that I will get from Kerala?
I am a salaried person who had a daughter with hearing impairment 98%. My daughter underwent an operation for cochlear implantation and I spent around Rs.35,000/- for buying spare accessories and service plan for sound processor. Can I get any tax benefit for the treatment expenses?
i am govt employee and my husband was doing buisness which is closed now and he has no income, my mother in law is paralysed with disability certificate 70% of and dependent on me so can i claim 80dd deduction for her.
My mother is paralysis patient , aged 83 years , had undergone for major operation in the month of June -2016. I had spent Rs.95000/- for her operation . I wanted know under which Income Tax category I can get this exemption
Sir my child is 100% mentally retarded (cerebral Palsy ) i am not making any expense towards his medical treatment or medicine during 2016-17. yet can i take any rebate U/S 80DD of dependent act
my wife has suffered from brain tumor and tumor excision was done 2 years back, post surgery she lost her vision, can I claim under 80DDB?
In case dependant child is handicapped from hearing impaired. He is married and having his children. Can the father of the dependant claim deduction under section 80 dd
Sir, if an dependant has orthopedic disabilities, whether he has to obtain certificate on form 10-IA or a handicapped certificate issued by Medical Board of Congress of a district is sufficient. If IT deptt says to submit certificate on form 10-IA what should be done.
Hello Sir, I am a salaried person.My 16 year old son is mentally retarded(>40%).He goes to rehabilitation centre by means of Auto to and fro for which I pay Rs.3400/-monthly.Kindly suggest me under what rule and how I may have exemption in incometax and tax benefit.Yours valuable guidance will decrease my some burdon for which I shall ever remain grateful and thankful to you.
Regards
Hi Team ,
My husband was on dialysis for last four years and I was getting the tax benefit every year by undertaking doctor certification .
Now in the year 2015 he has undergone major transplant surgery and his out of dialysis from then onwards .
Still my medical expenditure every month is very high it comes to 25 to 30 K .
Can I opt for this facility for my tax rebate and declare it in the coming financial year., If yes what would be the amount I shoud, declare
Hi,
My dad has suffered a major brain stroke and is in a vegetative state due to which he is bed ridden. What documents do i need in order to claim tax benefit under 80DD. Is it mandatory to get a certificate from a government doctors as they are saying that they want to see th patient which definitely is not possible.
Sir,
i ask this question under section 80DD.
i am salaried employee,my son is suffering from ”
Rheumatoid Arthritis” illness he have physically handicapped
certificate (above 80 percent) issued by government doctor.
every month i purchased tablets (RS 3000)
(Yearly RS 12000), for my son,but i am forgetting to take tablets
bills every month, so exemption under section 80DD is allowed to me
or not.
—
k.praveen
Sir, I am a government employee. Hon’ble Court has ordered its final judgment to me to pay monthly maintenance to my wife. My wife has been staying her parental home. In such a case can I claim tax exemption for paying monthly maintenance?
My mom has 90% of hearing impairment, will it be valid if I take the disability certificate from Private Doctor who has MS degree ?
I am salaried person & my father has suffering from PARALYZE ( 50% DISABLE) & HE GETTING PENSION ONLY Rs-1700/- ONLY
SO CAN I GET INCOME TAX REBATE
My mom has more then 85% hearing loss problem in both ears.(Holes in both ears) so can i claim under 80DD ? after having certificate from Government Doctor
Whether rebate U/s 80DD is allowed by employer (Tax deductor) of an employee or the same could be claimed by the employee while filing his return in Income tax department .
i have two uncles ( Father brothers) who are 100% disable and completely dependent on me. can i get 2.50 Lakh exemption under 80DD (1.25 Lakh/Person)
Sir i am physically handicapped person with 60%disability.i retirerd from mseb in last december 2015 and got efps pension Rs.2601/ pm.my wife is teacher shall she can claim exemption for section 88dd
Sir,
Myself and my wife are employed in a Bank and an Insurance Company respectively and we have a mentally retarded daughter with 75% disability.
Please clarify, whether both of us can individually claim the deductions @ Rs.75 K ? ie. Myself Rs. 75 K and my wife Rs.75 K.
Dear sir,
My mother has locomotor disability with 60% of disability. I have disability certificate from the govt hospital district surgeon. I don’t have any bills preserved for expenses towards my mothers medicines. I have only disability certificate. Still shall I eligible to claim deduction under section 80DD for full amount of 75000 for AY 2017-18? Please help.
Sir, my father is dependent on me, he is a pentioner & is undergoing treatment on Heart, its an Ayurvedic treatment, can I claim under 80DD & what documents are required.
Hi,My father is disabled dependent,he is hundred percent disabled and he has a disablity certificate from state govt and he is getting pension too as he was govt employee.So,Is it possible for me to show deduction under 8DD.Please advise.
I have 2 dependents brother retarded and son CP child can i get 125000 rebate on my incometax can i get rebate on both i.e 250000 under 80DD
My 100 % deaf and dumb sister is dependent on me. I have the certificate from CMO. I have the dependency certificate from my employer also. But she is registered with CGHS for medical purpose as my father was central Govt. employee. my father is no more. My mother is getting family pension.
in this case, can I claim the DEPENDENT WITH DISABILITY rebate ?
My Uncle were Claiming tax deduction benefits u/s 80DD. Now the dependent has expired in September, the question I whether the benefits will be withdrawn or will still be benefited till the end of financial year 16-17.
My brother is mentally affected. My sister is Hearing problem. Can I take benifit of both at a time as both are dependant on me
sir i am a teacher in AP.My SON IS MENTALLY RETARDED AND I AM HAVING DIST MEDICAL BOARD CERTIFICATE.AND HE IS SUFFERING MULTIPLE DISABILITY ALSO.HOW MUCH OF AMOUNT CAN I CLAIM UNDER WHAT SECTION .PLEASE CLARIFY ME
For 2 mentally retarded childrens 60 and 65 percentage in 80 dd how much amount i
should claim sir
hi
my father-in-law is an paralysis patient. i am salaried professional, can i avail 80dd deductions for my IT returns and if yes till what amount can i claim it?
My father is handicapped with 42 percent disability but he is physically handicapped. Am I eligible for the rebate??
my son is 5 month old, he has by birth bisorder on both hands called radial club hand. now his treatments are going on and he is not covered under any insurance policy. can i consider these exexpenses under which section of income tax?
my son is 5 month old and by birth he ha got radial club hand dis order on both hands. now he is under treatment, he is not covered under any insurance can i claim deductions under which section of income tax?
Budget 2016-17
स्वम (विकलांग) हु ITR- 2016-17 में की कितनी राहत मिल सकती है
Sir, my wife working in government, my child hospitalised due to low weight(800gm) by birth so that time my total bill was around 200000 , we claimed the same at govt they reimburseed me 150000 so that amount is taxable or not taxable?
Sir, my mother retired prematurely from Government service on grounds of invalidity because of disc prolapse and paraparesis (80% locomotor disability; she cannot walk and is wheel chair bound presently). Subsequently she developed chronic spine abscess and on continuous medical treatment since then. She claims deduction under Section 80U as of present. Since she is predominantly dependent on me financially in view of her lower pension can i claim her medical treatment expenses under Section 80DD if she does not claim it under Section 80U.
Sir,
My daughter dependent on me i am retired bank officer she is mentally challenge(retarded) i have civil surgeon latest certificate should i exempted under any section.
Hi , my son is a hemophilic and my wife recently identified have polymyositis. Interested to know the tax benefit which I can claim ,under which category and how much amount. Also what all the certificates supposed to produce. Please reply.