With the increase in advanced technologies in the medical field, the treatments have become effective but also expensive. Certain diseases and conditions make the person dependent on others for basic survival needs. The family members need to shell out a lot of money for the treatment and maintenance of a person with special needs. To provide relief to the family members, the Income Tax Act provides a tax deduction under section 80DD.
What are the Conditions to Claim Section 80DD Deduction?
Below are the conditions to avail of the 80DD deduction:
- The individual must be a resident Indian.
- The deduction should be claimed for the dependent family member and not for the taxpayer himself.
- Further, if the dependent has claimed a deduction u/s 80U, then the taxpayer cannot claim this deduction u/s 80DD.
- The taxpayer has incurred expenses for medical treatment, nursing, rehabilitation, or training of the differently-abled dependent.
- The taxpayer has paid or deposited any amount under a scheme framed by LIC or any other insurer to take care of the dependant.
- The disability of the dependent is at least 40%.
- A copy of the certificate issued by medical authorities certifying the ‘person with a disability’ has to be submitted along with an income tax return.
Hence, if taxpayers fulfil the above conditions, they can claim a deduction under section 80DD of the Income Tax Act.
Which Medical Authority is eligible to issue the certificate?
It is essential to have a medical certificate from a licensed medical practitioner to claim the deduction. The below-mentioned are deemed reliable for such a certificate:
- A neurologist with an MD in Neurology
- Pediatric Neurologist in case of disabled children
- A civil surgeon or Chief Medical Officer in a government hospital
Who are covered under ‘dependents’?
The aforementioned individuals must be entirely or primarily dependent on the taxpayer for their welfare in order to qualify for the deduction.
- Spouse
- Siblings
- Children
- Parents
- Member of HUF
What is the 80DD deduction Limit?
Section 80DD of the Income Tax Act allows flat deductions, irrespective of the amount of expenditure incurred during the year but it should not be nil. However, the amount of deduction depends upon the severity of the disability.
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 | INR 75,000 |
| Severly Disabled Person | INR 1,25,000 |
Note: If the taxpayer opts for the new tax regime, he cannot claim a deduction under Section 80DD of the Income Tax Act.
Which disabilities are covered u/s 80DD?
This deduction covers the following disabilities:
- Autism
- Cerebral palsy
- Blindness
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
ITR Form Applicable for Section 80DD
The taxpayer can claim the deduction while filing the ITR if they meet the above-mentioned conditions. Individuals or HUFs can claim 80DD in any of the ITR forms, i.e., ITR 1, ITR 2, ITR 3, and ITR 4 depending upon their income sources.
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
This form is available on the Income Tax Website.
Comparison between 80U & 80DD
| Parameters | 80U | 80DD |
| Eligible beneficiary | Taxpayer himself | Dependents of taxpayer |
| Type of beneficiary | Resident Individual | Resident Individual or HUF |
| Pre-requisite of incurring expenses | Flat deduction irrespective of the expenses incurred | Flat deduction provided that expenses have been incurred for support & maintenance of dependent |
| Amount of deduction | INR 75,000 (Normal disability) INR 1,25,000 (Severe disability) | INR 75,000 (Normal disability) INR 1,25,000 (Severe disability) |
FAQs
The deduction amount is fixed at INR 75,000 for a disabled dependent and at INR 1,25,000 for a severely disabled dependent. This amount is fixed, irrespective of the amount the taxpayer spends on the treatment or maintenance of disabled dependents.
No. An NRI can not claim the deduction, this deduction is only available to resident taxpayers.
A medical certificate from the medical boards stating the disability as issued by the government is required to avail of the tax deduction.
Yes, the taxpayer can claim both tax deductions after fulfilling the conditions.
Am i eligible to claim 80ddb and 80u simultaneously?
Hi @Zainab_Hawa1,
Yes, you can claim both deductions at the same time provided 80U is claimed for yourself and 80DD is claimed for a disabled dependent.
Hi @bhotlu
Quicko does support deduction on medical expenditures for senior citizens.
Here’s the article on how to add tax breaks on Quicko.
If you still face any issue, let me know.
Hi @bhotlu
Quicko does support deduction on medical expenditures for senior citizens.
Here’s the article on how to add tax breaks on Quicko.
If you still face any issue, let me know.
Hi @bhotlu
Thank you for bringing this issue to our notice. We checked you have also raised a ticket regarding the same.
Our team is working on resolving the problem and will provide you with a response through the ticket as soon as we have a solution in place.
Hi @Aman_Jain1
You can claim medical expenses + premium + preventive health checkups for your senior citizen parents of up to ₹50,000.
You cannot claim a deduction of the amount which your employer is paying as group insurance but you can claim the extra amount which you are paying and which is not covered under the group health insurance provided by the employer.
Hi @mbharwani
If in the certificate it is mentioned that the disability exists since 2012, you can claim it in FY 2022-23 as well.
Yes, @mbharwani you must file form 10IA for the same.
Hello @Shrutika_Shah ,
Recently i had a surgery which costed me around 85K , my corporate insurance company reimbursed only 60K So my question here is Can I show remaining 25k as medical expense ? if yes please provide the details.
Hi, I have Medical Insurance Premium of amount 15000 as my CTC component. Can I avail tax benefit under 80 D on this amount?