Article explains Deduction under Section 80DD: Expenses for Dependent Relative or Provision for the Same (Depends On Expenses Incurred / Contribution Made) and under Section 80U: For Disability of the Assessee Herself or Himself (Does Not Depend On Expenses Incurred/ Contribution Made).

1. Section 80DD: Expenses for Dependent Relative or Provision for the Same (Depends On Expenses Incurred / Contribution Made)

  • This deduction is available only to resident Individuals and HUFs.
  • This is a beneficial deduction available against payment for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability or deposit of amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified and approved by the Board in this behalf for the maintenance of a dependent, being a person with disability.
  • This deduction is restricted up to Rs. 75,000 for normal disability and Rs. 125,000/- for severe disability. Severe disability means a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or a person with severe disability referred to in clause (o) of section 2 of the National Trust. for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999). These details are generally mentioned by the medical authority who issues the certificate.
  • If the dependent, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.
  • A certificate issued by a medical authority is a must as a documentary evidence. This deduction is available only up to the validity of such certificate beyond which the same needs renewal.
  • Disability shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [4][and includes autism , cerebral palsy and multiple disability referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)]. The persons eligible are of minimum 40% of the disability or if 80% and above they will be classified as persons with Severe Disability.

2.  Section 80U: For Disability of the Assessee Herself or Himself (Does Not Depend On Expenses Incurred/ Contribution Made)

  • This deduction is allowed only for a Resident Individual.
  • This is a standard deduction restricted to Rs. 75,000/- in case of normal disability as specified and Rs. 125,000/- in case of severe disability. Severe disability means a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or a person with severe disability referred to in clause (o) of section 2 of the National Trust. for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999). These details are generally mentioned by the medical authority who issues the certificate.
  • This deduction is available irrespective of the amount spent on medical treatment or nursing.
  • Disability shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [4][and includes autism , cerebral palsy and multiple disability referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)]. The persons eligible are of minimum 40% of the disability or if 80% and above they will be classified as persons with Severe Disability.
  • A certificate issued by a medical authority is a must as a documentary evidence. This deduction is available only up to the validity of such certificate beyond which the same needs renewal.

Disclaimer: This write up is not intended to be a professional advice to anyone, therefore neither the Author nor the Organization he represents accepts any responsibility whatsoever and hence no liability can arise for any losses, claims or due to the contents of this write up. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. The opinion is the personal opinion of the author and the firm P P Jayaraman & Co will not in any way be responsible for any claim etc.

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Qualification: CA in Practice
Company: PP JAYARAMAN & CO
Location: THANE, Maharashtra, IN
Member Since: 11 Sep 2019 | Total Posts: 8
The author, Aravind Jayaraman is a Chartered Accountant in Practice based in Thane, Maharashtra. View Full Profile

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