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 both child are physically handicap (severe disability ) can I apply for both.
Thanks
Sajid S
The CDMO of our district is saying that he will not give the FORM NO. 10-IA. and he said specialist will give this. Then will and private hospital specialist is also valid for this?
Hello sir, I am a Govt salaried person.my son is mental retarded.my son birth is March 2010.can I claim now deduction under 80dd for fin year 2010-11, 2011-12, 2012-13,2013-14.in these years returns i could not claim deduction under said rule.pl suggest me about previous year return can I revise the return from fin year 2010-11.doctor give me certificate of my son in year 2014 mentioned by birth problem.
In relatives my wife’s mother & father will cover as wife’s sister & brother is covered.
# My father 80+ is suffering from permanent disability and has got a Disability Certificate from All India Institute of Physical Medicine & Rehabilitation,Mumbai.He also has got a Concession Certificate from the same Institute which enables him to travel by railways along with an escort.
# He is dependent on me and we have a Health Insurance Policy on which I get
benefits u/s 80D.
# I want to avail benefits u/s 80DD for my father.I am in 20% I.T.slab,working as Asst. Prof., in a College,under UGC scales.I shall be grateful, if you will let me know amount I am entitled under 80DD. Monthly expenditure on my father is Rs:25000.00.I need this figure for filing my I.T.Return for the Year 2013/14.
# Thanking you and hoping to hear from you soon.
Sushma Sahai
In my view where the person being “person with disability” covered under clause (j) of section 2 of National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999, the 40% disability requirement is not necessary for claiming minimum amount of deduction of Rs.50,000 because “person with disability” is separately defined under the Income Tax Act which does not refer back to Sec2(i) of the Person with Disabilities Act, 1995.
dear sir
iwant to ask whether my father and i both can claim deductions under Sec 80 dd and 80u respectively as till jul 13 i was completely de[endent on my father afterwards i got job i am 75% disabled.please reply soon thanks
My Father is Senior Citizen (89yrs), he was having Night Blindness (Termd as Ratina pigmentation) & now lost 90% vision. He is Tax paying Assessee having Investment Income. Kindly clarify can He/Myself(Only Son)can claim deduction of Rs. 1,00,000 u/s 80DD? is actual expenditure is criteria OR its flat deduction?
Due to Poor eyesight I have purchased a new spectacles for myself. Can I take this expense under Income Tax Medicals bills / allowance for exemption during this Asst.Year 2014-15?
Please help me on this with relevant IT Section for claiming this exemption.
I am cg employee having an insane elder brother aged 70 years old is wholly solely dependent upon me after the death of our parents.The said insane brother having no source of income for survival & is putting with me,ailing from several diseases.Can he be dependent upon cg employee,and can avail the facilities of Medical & Ltc.
Sir, My mother is perallised with right body since last 6 month. she’s recently suffering from brain stroke also. the medical treatment is so costly i hv a corporate mediclaim. could i get a benefit of u/s 80DD and deduct some money in my tax ?
Dear Sir/Madam,
My daughter is 10 yrs old. She is having kidney problem(nephrotic cendrum) for last 8 yrs. Can I claim her medical expenses under 80dbb. If yes what is the procedure.
My son met with an accident & was in vegitative stage since last Eight years.
I was claiming tax rebate u/s 80DD.
In November 2013 he passed away. My question is can claim the rebate u/s 80DD
for current year.
Hi,
I have renal transplant ( kidney ) on jan 2013. i m salery person my medical
expenses is monthly 10000 can i claim this amount for tax beneficial with 80DD.
thanks sir.
sir
i m retiring in july and will get my pf/gratutity/other benefits can i take ( GIFT)fix deposit in the name of my mentally ill daughter and spouce AND GRAND SON my son not come under i tax act
I am Central Government. My daughter is suffering from Hearing Loss with more than 95% disability certificate by Government Civil Hospital. Can I eligible for exemption under 80DD. Please advise me.
my father is 70% phisicle chalenged dew to polio is he depend on me.if yes then i have only 20000 rs bill on father name then what will gona happend.
sir,
my father is 70% phisicle chalenged dew to leg,is he depend on me
I had a Chronic Renal Failure and subsequently undergone for Renal Transplantation. Presently I am on Immuno-supressor drugs (Very expensive medication)for prevention of the graft rejection.Can I claim these expanses for exemption under 80DD,Please advise me on this.
with best regards,
Rajesh Kumar
Dear Sir
My mother is 60 years and diabetic. She has a Knee Problem in both the Legs. Doctor has suggested to do Operation . The Expense of Surgery and Knee replacement is Rs.3 Lakh.She is Dependent on me. Hence can I claim the expenses incurved under 80DD, with a dactors certificate. Please suggest.
Hello,
My father met with an Accident & suffered an internal Brain Hemorrhage on 7/5/2011. Drs said he will not be able to walk or behave like normal individual. Now after 3 years his condition is same, so will it come under Physical Disability under section 80DD and what kind of expenses are covered under this section.
My mother has Knee problem not able to walk only with support,what I need to do.
Can I get disabled crtificate from my regular Ortho Doctor & Expeness report & ccan it be tax free & by what amount?
Sir,
I am a salaried person. My brother is not mentally sound and he is 100% dependent on me. My brother’s medical expense (only) is approximately 24,000 p.a. I have not obtained a medical certificate from doctor specifying his percentage of disability.
In case the doctor provides a medical certificate specifying his percentage of disability to be 80% – 100%, can I claim deduction between 50,000 – 100,000 based on the cerfiticate issued by the doctor or I will be eligible to cliam deduction upto INR 24,000 only.
Thanks
My mother is handicapped dependent as Deaf and dumb 100% .. by birth… no any medical expenses done by me for her treatment.Except some miner test.
Can i claim benefit under 80DD? that is i think Rs. 1 Lac for severe disability.
I Am an Employee of On private Company I am my self Physically Disability Person . Then How can I Show Tax Deduction Under PWC which Clause ..Ple Give me Clarification
I am diabetic. can I get some rebate in income tax
Sir,
my father is a 100% blind person and depend on me.Can I claim Income Tax exemption up to Rs 1.00 Lakh towards maintanence( Medical Bills are reimbursed by my employer) under section 80dd? Please inform me sir
sir,
i am a salary person. i am having a 28 years old disable brother with cerebral palsy( 80% disable).my mother also getting pension 80000/- per annum.The maintenance of my brother is also borne by me like medical expenses as well as other day to expenditure. which comes to Rs.7000-per month including its insurance.kindly suggest me could i get relief under 80DD.
i hv one daughter which has cerebral palsy. in section 80DD for income tax, is it required to put the medical bill? pl give the answer as early as possible.
thanking u. my contact no. 7600299796
My father is paralytic with 40% disability and is dependant on me. Under which section I can claimed for tax exemption. Also let me know what proof I have to show for the same.
My mother is handicapped dependent as Deaf and dumb 100% .. by birth… no any medical expenses done by me for her treatment.Except some miner test.
Can i claim benefit under 80DD? that is i think Rs. 1 Lac for severe disability.
R/Sir,
Sir,I am in service Govt PSU and elder son 28 year old suffering from CP (mentally retarded)I want to rebate u/s 80DD. So pl tell me how many amount spent in LIC/medical treatment to get rebate on 50000/.
Thanking You
Very usefull information given and sharing by friends, thank you all.
I have one question, shall i approach directly National Trust for health insurance? or we need to go through my child (who is suffering with Autism-60%)
one of my client who is a salaried person and had a son who was disabled more than 80% and after expending rs. 1 lakh rupees he died last year (2012-13) during his medical treatment andhe wants a deduction of rs. 1 lakh under section 80DD . Is it possible or not????please leave a reply…
I HAVE A MENTALLY RETARDED SISTER WHO IS DEPENDENT ON ME AND ALSO I AM THE GUARDING LEGALLY CERTIFICATE ISSUED BY NATIONAL TRUST.MY FATHER RETIRED .I HAVE TO LOOK AFTER MY SISTER MAINTENANCE AND ALSO MEDICAL EXPENSES EVERY MONTH AS SHE IS A DIABETIC.AS I AM SALARIED EMPLOYEE CAN I CLAIM INCOME TAX BENEFIT
UNDER SECTION 80 DD AS MY SISTER IS HAVING MORE THAN 40 % DISABILITY.
My sister is more than 80% disability.Now i am already claiming Rs.100000 tax exemption.she must take medicine life long.So can i aslo claim Rs.40000 according to section 80DDB
I have 2 disabled dependents – my mother-in-law (age 73yrs)for whom I have been claiming Rs. 60000 deduction since 2 years under sec 80DD.
Since this year my father who is dependent (age 75yrs) is mentally ill and suffering from Dementia for whom I am paying nursing charges every month.
Please let me know if I can claim deduction under sec 80DD for both my mother-in-law and for my father.
Thank you.
I have two disabled dependent one is my brother (60%)Disabled, and another one is My wife’s brother ( 100%). How much i can claim under 80DD
thanks
my father is an handicapped dependent person.but money cant be spent for his treatment .can i claim tax exemption under section 80dd
I have two disabled dependent one is my brother (60%)Disabled, and another one is My wife’s brother ( 100%). How much i can claim under 80DD
thanks
Can I claim the deduction u/s 80DD – the expenses incurred in private hospital for treating the handicapped dependent
I am a salaried person. I have an handicapped brother and his normal wife.
I have taken a LIC policy for both my handicapped brother and his wife separately.
I am claiming rebate under section 80 DD for my brother policy by submitting a deceleration that he is dependent on me.
Can i claim rebate in income tax for his wife policy (i.e my Bhabhi) as she is too dependent on me?? if yes, under what section or pls provide reference for a similar case.
important information. must read to everyone….
My sister in law is more than 60% permanent handicap and have a medical Board certificate. She got family pension of her parent but it is not sufficient to its livelihood. My self is Income tax payer and my husband is doing private service and not earning more. My husband are four brothers, expect my husband they are not interested to care-take of my sister in law. She is totally depended me and live with us. Let me know: Can I claim the deduction under 80DD? If yes, What is procedure to claim and what evident to show for claiming?
Thanks with regards.
Dear Sir,
I have a sister with 70% mental retardation,claiming for 80DD ,should i produce the certificate only or should i produce the medical bills as well ?
or any recipt made by me is enough???
I have a sister with 82% mental retardation,claiming for 80DD ,should i produce the certificate only or should i produce the medical bills as well ?
I am a salaried person & my mother is suffered paralytic attack in Nov 13. My father is retired and not earning anything. Both are dependent on me. Can I get a exemption under 80DD in Income tax.
Please help me what document i need to submit to my employer for Income tax exemption.
Thanks
Hi,
Today morning i went to Vellore government hospital, no use in that because, chief doctors not aware of this TAX benefits and whom to contact. no use in keeping this doctors and not able to guide other.
my father 74 year this year under gone with spinal surgery and had a implant and taking bone TB treatment. he is covered under medical insurance by my Brother in law i his company up to Rs.1.00 lac. but including surgery and medicine costs around 3.00lac can i get rebate on excess amount spent on his treatment?
Iam govt. Servant. My son is 100% desable.what type of relaxation get me in income tax.