Section 80DD: Deduction for Differently Abled Dependant

A resident Individual/ HUF can claim an income tax deduction u/s 80DD for any expenses incurred on the treatment of dependent family members. A family member includes children, spouse, parents, siblings.

Deduction under section 80DD is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime
Tip
Deduction under section 80DD is not allowed for Financial Year 2020-21 if the taxpayer opts for the new tax regime

Who is Eligible to Claim Deduction Under Section 80DD?

Deduction under section 80DD can be claimed by an individual/ HUF. Provided a taxpayer has incurred expenditure on a dependant family member. And a member is suffering from any of the following disabilities:

  • Autism
  • Cerebral palsy
  • Blindness
  • Low vision
  • Leprosy cured
  • Hearing impairment
  • Locomotor disability
  • Mental retardation
  • Mental illness

What are the Conditions to Claim Section 80DD Deduction?

  • 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
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What is the deduction limit?

Below deduction limits are applicable irrespective of the 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

Category

Deduction Amount
Disabled Person(40% or more of the disability) Rs. 75,000
Severely Disabled Person(80% or more of the disability) Rs. 1,25,000

ITR for Salaried Individuals
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ITR for Salaried Individuals
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ITR Form Applicable for Section 80DD

The taxpayer can claim deductions u/s 80DD while filing ITR if all the above-mentioned conditions are full-filled. Individuals/HUFs can claim 80DD in any of the ITR forms, i.e, ITR 1ITR 2ITR 3, and ITR 4 depending upon their income sources. The due date for filing ITR is 31st July of the next FY if the tax audit is not applicable.

For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.
Tip
For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.

Supporting Documents

Taxpayers will need the following documents along with the common documents required to file ITR such as Form 16, PAN, etc.

  • Medical Certificate
  • Form 10-IA
  • Self-Declaration Certificate
  • Receipts of Insurance Premium

FAQs

What is the format of the 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 the Income Tax Department.

Is the deduction amount u/s 80DD fixed or vary with expenses incurred?

The deduction amount is fixed at INR 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 the treatment of disabled dependants.

Can an NRI claim deduction u/s 80DD?

No. An NRI can not claim the deduction, this deduction is only available to resident taxpayers.

Got Questions? Ask Away!

  1. Hey @sushil_verma

    There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

  2. Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA), conveyance, transport allowance, medical reimbursement, etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

    For eg,

    • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
    • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
    • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

    Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

  3. The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

    Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

    As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

  4. Hey @Sharath_thomas , we have updated the content according to the appropriate assessment year. Thanks for the feedback.

  5. Hey @shindeonkar95

    In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

    However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

    Hope, it helps!

  6. Hello,

    Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

    There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

    I couldn’t find anything on this. Any help is appreciated.

  7. Hello @Veejayy,

    Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

    Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

    These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

    Also, interest earned on these bonds will be taxable.

    Hope this helps!

  8. Hi, I need to file my income tax for FY21, I am using Quicko platform for filing, I wanted to confirm if the ELSS investment amount for the FY21 is to be added in the section 80C, since I already the amount of Rs30,072 , should I add my ELSS amount to this existing amount and submit the total

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