Section 80DD: Deduction for Differently abled Dependant
Who can claim a deduction u/s 80DD?
A resident Individual/ HUF can claim an income tax deduction for any expenses incurred on the treatment of dependent family member. A family member includes children, spouse, parents, siblings.
Who is eligible to claim deduction u/s 80DD?
An individual/ HUF can claim a deduction u/s 80DD. Provided a taxpayer has incurred expenditure on a dependant family member. And a member is suffering from any of the following disabilities:
- Cerebral palsy
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
What are the conditions to claim deduction u/s 80DD?
- This deduction can be claimed in two conditions:
- When the person has incurred any expenses for medical treatment, nursing, rehabilitation or training of the differently abled dependant.
- When the person has paid or deposited any amount under a scheme framed by LIC or any other insurer on behalf of a dependant.
- A copy of the certificate issued by medical authorities certifying the ‘person with a disability’ has to be submitted along with income tax return.
What is the deduction limit under Section 80DD?
Below deduction limits are applicable irrespective of an amount of expenditure incurred during the year. There are two categories for a person with a disability under section 80DD:
- Disabled Person: An individual suffering from at least 40% of disability.
- Severely Disabled Person: An individual suffering from at least 80% of disability.
|Disabled Person(40% or more of the disability)||Rs. 75,000|
|Severely Disabled Person(80% or more of the disability)||Rs. 1,25,000|
1. What is the format of certificate to claim the deduction u/s 80DD?
Income Tax Rule 11A prescribed the certificate format for deduction u/s 80DD. You can download it from here.
2. Is the deduction amount u/s 80DD fixed or vary with expenses incurred?
The deduction amount is fixed @ Rs. 75,000 for a disabled dependent and @ Rs. 1,25,000 for a severely disabled dependant. This amount is fixed irrespective of the amount you spend on treatment of disabled dependant.
3. Can an NRI claim deduction u/s 80DD?
No. An NRI can not claim deduction u/s 80DD. This deduction is only available to resident taxpayers.