Section 80DD: Deduction for Expenses on Disabled Dependent

Section 80DD of the Income Tax Act, 1961 provides a tax deduction for individuals and Hindu Undivided Families (HUFs) who incur expenses for the medical treatment, care, training, rehabilitation or maintenance of a dependent family member with a disability. This deduction applies whether you actually spend on care or pay insurance premiums for the dependent, offering financial relief while reducing taxable income. The provision is available under old and new tax regimes and helps ease the financial burden on families supporting differently‑abled members.

What Is Section 80DD

Section 80DD allows taxpayers to deduct a fixed amount from their gross total income for caring for a disabled dependent, irrespective of the actual expenses incurred (subject to limits). This deduction is not linked to actual bills spent but is based on the severity of disability certified by a medical authority.

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Who Can Claim Section 80DD

The following taxpayers can claim the deduction under Section 80DD:

• Resident Individuals - Indian residents supporting a disabled family member.
• Hindu Undivided Families (HUFs) - HUFs with a disabled member whom they financially support.

Non‑resident taxpayers cannot generally claim this deduction.

Who Qualifies as a Disabled Dependent

A dependent must be a family member relying on the taxpayer for financial support, such as:

• Spouse, children, parents
• Siblings or other HUF members
• The dependent must have at least 40% disability as certified by a qualified medical authority in prescribed form (e.g., Form 10‑IA).

Disability includes physical or mental impairment such as blindness, hearing loss, locomotor disability, or mental illness as defined under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

Eligible Expenses Under Section 80DD

The deduction covers:

• Medical treatment costs
• Nursing and care expenses
• Training and rehabilitation of the dependent
• Premiums paid for insurance policies specifically for the benefit of the dependent (approved by income tax authorities)

Unlike some other deductions, actual bills aren’t required to be submitted if the medical certificate and necessary proofs are in place.

Deduction Limits under Section 80DD

Section 80DD offers fixed deductions based on disability severity, regardless of the actual amount spent:

• ₹75,000 per year - If the dependent’s disability is 40% or more but less than 80%.
• ₹1,25,000 per year - If the dependent has a severe disability (80% or more).

These amounts are allowed as a deduction from your gross total income before tax computation.

How to claim Section 80DD Deduction

Step‑by‑Step:

1. Get Disability Certificate: Obtain a certificate from a qualified medical authority, such as a civil surgeon, neurologist, or specialist, certifying disability percentage.
2. Maintain Documents: Keep the medical certificate and proof of expenses or insurance premium receipts.
3. Include in ITR: While filing your Income Tax Return, enter the claimed deduction amount under Section 80DD in the “Deductions under Chapter VI‑A” section.
4. Attach Certificate: Submit or retain the disability certificate (Form 10‑IA) along with your return or keep it for assessment records.

No separate form (like 80G receipts) is required; the medical certificate suffices for verification if needed.

Conditions & Important Points

• The deduction under Section 80DD cannot be claimed for the same dependent if they have already claimed benefits under Section 80U for their own disability in the same year.
• You may claim this deduction under both old and new tax regimes, but it only applies if you opt for the regime where Chapter VI‑A deductions are allowed.
• The deduction is fixed and does not increase with actual expenses, even if you spend more on treatment, the limit applies.

Example

Example 1:
Rita supports her brother, who has a 50% certified disability. Even though she spent ₹90,000 on care and therapy in the year, she can claim a ₹75,000 deduction under Section 80DD.Example 2:
Rahul’s disabled parent has 85% certified disability. He pays ₹2,00,000 toward insurance and treatment in the year. He can claim a ₹1,25,000 deduction under Section 80DD.

Conclusion

Section 80DD offers valuable tax relief for those who support a disabled dependent, allowing a significant deduction from taxable income based on the dependent’s disability level. Whether medical expenses are high or moderate, the focus is on supporting long‑term care through a fixed, easy‑to‑claim deduction that brings financial relief and reduces tax liability. Ensure you obtain a certified disability certificate and report the deduction correctly while filing your income tax return to maximise your tax savings.