Section 80DD

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

  • Meaning: Expenditure incurred on medical treatment (including nursing), training and rehabilitation of handicapped dependant relative or the taxpayer may have deposited in a scheme of LIC or another insurer for maintenance of the dependant.
  • Eligibility: Provides deduction to an assessee, who is resident in India, being Individual or Hindu undivided family.
  • Quantum of deduction: The deduction is Rs 75,000 and in case of severe disability (i.e., person with 80% or more disability) the deduction shall be Rs 1,25,000
  • Conditions:
    • For claiming the deduction, the assessee shall have to furnish a copy of the certificate issued by the medical authority under the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 along with the return of income under section 139.
    • Where the condition of disability requires  reassessment,  a  fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned in the original certificate in order to continue to claim the deduction.
    • If the dependa
    • nt, being a person with disability, predeceases the individual or the member of HUF, in whose name subscription was made, then the amount paid or deposited under the said scheme would be chargeable to tax in the hands of the assessee in the previous year in which such amount is received by the assessee.

Note :

Meaning of “Dependant”:

Sl No.   Assessee Dependant
(1) Individual The spouse, children, parents, brother or sister of the individual who is wholly or mainly dependant on such individual and not claimed deduction under section 80U in the computation of his income
(2) HUF A member of the HUF, wholly or mainly dependant on such HUF and not claimed deduction under section 80U in the computation of his income

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