An individual who is resident in India can claim tax deduction in respect of maintenance including medical treatment of a dependent being a person with disability under section 80DD of the Income tax act, 1961.
A hindu undivided family (HUF) can also take benefits of Section 80DD of the Income tax act, 1961.
As section 80DD is silent on citizenship of the Individual, both Indian citizen and foreign citizen are eligible for this tax deduction.
Who can claim tax deduction under section 80DD
Section 80DD of the Income Tax Act provides for a flat deduction for residents for maintenance of disabled dependents irrespective of the amount of expenditure incurred.
As per the provisions of section 80DD of the Income tax act, 1961, tax deduction for a dependent-who is differently-abled is allowed to Resident Individuals if the dependent is wholly dependent on the individual for support & maintenance.
Section 80DD tax benefits are also available to a Hindu Undivided Family (HUF). In the case of a HUF,
What is Section 80DD of Income tax?
In the Income tax act, 1961, we have Section 80DD which provides tax benefits to a resident individual or HUF for the medical treatment of a disabled dependent.
Here is a list of important conditions one should remember while taking benefits of section 80DD;
- Tax deduction under section 80DD is available for a dependent of the taxpayer, not the taxpayer himself.
- Taxpayers must be a resident in India to claim tax deduction under section 80DD.
- If section 80U benefits are taken by the dependent, then section 80DD tax deduction is not available to the taxpayer.
- In order to claim tax benefits, the taxpayer must have incurred expenses for medical treatment (including nursing), training & rehabilitation of the differently-abled dependant or the taxpayer may have deposited in a scheme of LIC or another approved insurer for maintenance of the dependent being a person with disability.
- Disability should be as it is defined under section 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.
- Disability of the dependent is not less than 40%
Who is dependant for the purpose of section 80DD tax deduction
For an individual taxpayer, dependant means spouse, children, parents, brothers & sisters of the taxpayer.
In case of a Hindu Undivided Family (HUF), dependant means a member of the HUF.
To claim tax deduction, above individuals should be completely or majorly dependent upon the taxpayer for their support and maintenance.
Please note, a resident individual and Hindu Undivided Family (HUF) can claim tax deduction for the disabled dependent. Therefore, NRIs are not eligible for tax deduction under this section.
Amount of tax deduction under section 80DD
Irrespective of the taxpayer’s actual expenses, a fixed amount of tax deduction is allowed under section 80DD of the Income tax act, 1961.
This fixed amount of tax deduction is available based on the severity of the disability.
If the dependant’s disability is more than 40% and less than 80%, a fixed amount of 75,000 rupees is allowed as tax deduction under section 80DD.
In case the dependant’s disability is more than 80%, instead of 75,000 rupees, a fixed amount of 1,25,000 rupees is allowed as tax deduction.
Documents required to claim tax deduction under section 80DD
In order to claim tax deduction under section 80DD of the income tax act, 1961, you need to have following documents;
- Medical certificate as evidence of the dependent’s disability.
- Form No. 10-IA: required in cases where the dependent with a disability is affected by autism, cerebral palsy, or multiple disabilities.
- A self-declaration certificate stating the expenses incurred on the medical treatment, which includes nursing, rehabilitation, and training, of the disabled dependent.
- Insurance premium receipt: in case the taxpayer wants to claim expenses for insurance policies taken for the disabled dependent
What are the disabilities covered under section 80DD
The definition of disability is taken from the “Persons with Disabilities Act, 1995”. You need to refer to section 2(i) of the Persons with Disabilities Act, 1995.
Here is a list of disabilities that is covered under section 80DD;
- Mental illness
- Low vision
- Hearing impairment
- Autism
- Mental retardation
- Cerebral palsy
- Loco-motor disability
- Blindness
- Leprosy-cured
Who can issue medical certificate to claim tax deduction under section 80DD
A government hospital’s civil Surgeon or Chief Medical Officer (CMO) can issue a medical certificate by certifying a person as disabled for the purpose of section 80DD tax benefits.
In case of a child a Neurologist with a Doctor of Medicine (MD) degree in Neurology or a Paediatric Neurologist holding an equivalent degree can issue a medical certificate under this section in order to take benefits.
You are suggested to keep a certificate with you from these authorised medical practitioners. We also suggest keeping all medical prescriptions and medical records in case the assessing officer of the income tax department asks for the same in the future.
If you have not filed your tax return, the last date to file ITR is 31st July. In case you miss this date, then income tax return can be filed on or before 31st December. However, for late filing, the ITR will be considered as a belated return. Penalty, additional fee for filing and interest will be applicable as per the provisions of income tax act, 1961.
Frequently asked questions (FAQs)
How much tax deduction can I claim if my medical expenses for the dependent is 25,000?
Section 80DD tax deduction is fixed irrespective of the amount the taxpayer has spent on medical treatment of the dependent. In this case you can claim either 75,000 or 1,25,000 rupees based on the percentage of disability of the dependent.
What is the difference between section 80DD and Section 80U? Can tax deduction under section 80U and Section 80DD be claimed together?
Section 80U of the Income tax act, 1961 allows an individual with disability to claim tax deduction for themselves. The taxpayer himself must be certified as a person with disability.
In the case of section 80DD, the taxpayer claims tax deduction for incurring medical expenses for a disabled dependent. Therefore, a taxpayer cannot claim a deduction for their medical expenditure on themselves under section 80DD.
What is the difference between section 80D, section 80DD, Section 80DDB and Section 80U?
We have basic differences that as a taxpayer you must note in order to claim tax benefits accurately.
| Section No. | 80D | 80DD | 80DDB | 80U |
| When to claim | Medical Insurance & Medical expenditure | Medical treatment of a disabled dependent | Medical Treatment of Self/Dependant for specified diseases | Medical Treatment of the disabled taxpayer (self) |
| Amount of tax benefit (in INR) | Up to 1,00,000 subject to certain conditions | 75,000 (more than 40% but less than 80% disability) 1,25,000(more than 80% disability) | Amount actually paid or 40,000, whichever is less (age < 60) Amount actually or 1,00,000, whichever is less (age 60 or above) | 75,000(more than 40% but less than 80% disability) 1,25,000(more than 80% disability) |
Can a disabled person claim tax deduction U/S 80DD for himself?
No, under section 80DD a disabled person is not allowed to claim a tax deduction by himself or herself. As per this section, tax benefits can only be claimed by the taxpayer who has incurred medical expenses for the differently disabled dependent person.
However, section 80U allows you to claim this type of tax deduction.
Can a person claim tax deduction U/S 80DD for cousins or friends who are totally dependent on the taxpayer for medical expenses?
No, the term dependent under section 80DD does not include anyone other than children, spouses, parents, brothers & sisters of the individual. In case of HUF, any member of the hindu undivided family can be a dependent.
Therefore, your tax benefits can not be claimed for cousins or friends who are totally dependent on the taxpayer for medical expenses.
