If you have a dependent person in your family who is suffering from a disability, then you can avail tax benefit under section 80DD. This deduction is offered to help you take care of your disabled family member who is dependent on you.
If the individual himself is suffering from a disability, then he can claim tax benefits under section 80U.
Any individual or HUF (Hindu Undivided Family) who is a Resident of India is eligible to claim this deduction.
This tax deduction is not available to NRIs (Non-Resident Individual).
Who comes under disabled dependent?
- For individuals, a disabled dependent can be spouse, son / daughter (any child), parents, brother / sister (siblings).
- For HUFs, a disabled dependent can be any member of the HUF.
The disabled person should be dependent on the person claiming deduction. The disabled person should not have claimed deduction under section 80U.
What kind of expenses qualify for deduction?
- Any expenditure made towards medical treatment, nursing, training, rehabilitation of
a dependent person with disability.
- Any amount paid as premium for a specific insurance policy designed for such cases.
The policy must satisfy the conditions mentioned in the law.
- If the disabled dependent predeceases the person claiming deduction under this
section, then an amount equal to the amount of premium paid shall be considered
to be the income of the claimer for previous year (i.e., the year in which such
amount is received by the claimer / assessee) and shall be chargeable to tax.
Deduction allowed varies depending on whether the dependent person has disability or severe disability.
A) Dependent person with disability
If the dependent person has at least 40% of any of the specified disability, then he is considered a person with disability.
Hence, the individual taking care of the medical expenses of dependent person with disability can get tax deduction of Rs. 75,000.
B) Dependent person with severe disability
If the dependent person has at least 80% of any disability, then he is considered a person with severe disability.
Hence, the individual taking care of the medical expenses of dependent person with severe disability can get tax deduction of Rs. 1,25,000.
||Amount (in Rupees)
|Dependent person with disability
|Dependent person with severe disability
Disabilities covered under section 80DD
The following disabilities are covered under section 80DD of the Income Tax Act, 1961:
- Low vision
- Loco motor disability
- Hearing impairment
- Mental retardation
- Mental illness
- Cerebral palsy
How can I claim tax deduction under section 80DD?
The section 80DD deals with providing tax deductions to individuals and/or
HUFs for caring for a disabled dependent. You will be required to produce /
submit a medical certificate authenticating the disability of your dependent
from a certified medical authority as defined by the law.
Who can certify a person as a disabled person?
The following kinds of medical authorities can certify a person to be disabled:
- A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital
- A Neurologist with an MD in Neurology
- In case of children, a Paediatric Neurologist having an equivalent degree
I have spent Rs.35,000 as expenses for caring for my disabled dependent. How much deductions can I claim u/s 80DD?
You can claim the full amount of Rs.75,000 as deductions under this section for disabled dependent and Rs.1.25 lakh for severely disabled dependents, irrespective of the amount actually spent during the year on care.