Section 80DD – Save Income Tax by Claiming Deduction on disabled dependent

Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability.
(Section 80DD)

Que: Can I claim this Income Tax benefit for my family member who is physically handicap?
Ans: Yes, you can claim the Income tax benefit, since if he is dependent on you.
As per the income tax act, benefit can be taken by any individual for his/ her dependent family member or by HUF for any HUF members in family?

Que: What is the amount of deduction available under section 80DD?
Ans: Rs 50,000/- if it is more than 40% disability .
Rs 1,00,000/- if it is more than 80% disability (ie severe disability)

Que: What is the nature of expense is allowed as deduction ?
Ans: Nature of Expense allowed is :
(a) Any Expenditure incurred for
(i) the medical treatment (including nursing),
(ii) training and rehabilitation of a dependant, being a person with disability; or

Or,
(b) any sum paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,

Que: I have only incurred Rs 10000/- for medical treatment for my dependent Handicap family member. Can i claim full Income tax benefit of Rs 50,000/-?
Ans: Yes, You can claim full deduction of Rs 50,000/- even if the actual amount spent by you is less than Rs 50,000/-

Que: What happens if , the dependent handicap family member dies before the person who is paying premium?
Ans: If the dependent, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section, an amount equal to the amount paid or deposited be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.

Que: What is definition of dependent?
Ans: (i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family,
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance,

and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;

Que: What is considered as disability?

Ans: Disability would be as defined by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.

It includes the following:

  • Blindness
  • Low vision
  • Leprosy-cured
  • Hearing impairment
  • Locomotor disability
  • Mental retardation
  • Mental illness

A person with disability means a person suffering from not less than 40% of any of the above disabilities.

Severe disability means 80% or more of one or more of the above disabilities.

 

Que: What are the requirements?

Ans: You need to have a proof of disability for your dependent to claim deduction under section 80DD. You need to get a certificate of disability from relevant medical authorities.

For people having Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up. There are two other formats for mental illnesses and all other disabilities.

The relevant authorities who can sign these forms are:

– A Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)

or

– A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

 

Relevant Section as per Income tax act is reproduced below:

80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,—
(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

(b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,

the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year:

Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words “fifty thousand rupees”, the words [“one hundred thousand rupees“] had been substituted.

(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:—

(a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;

(b) the assessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.

(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.

(4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed:

Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income.

Explanation.—For the purposes of this section,—

(a) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(b) “dependant” means—
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family,
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;

(c) “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [and includes “autism”, “cerebral palsy” and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

(d) “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub-section (8) of section 88;

(e) “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

(f) “person with disability” means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];

(g) “person with severe disability” means—

(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or

(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)

(h) “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).]

18 Responses to Section 80DD – Save Income Tax by Claiming Deduction on disabled dependent

  1. samir soni says:

    very good information

  2. Vishwajeet says:

    I am an Ex Serviceman and 60% disabled retired soldier for 04 disabilities, now I am joined Chandigarh Govt Job being disabled soldier. Please clarify the income tax will be deducted from my salary or otherwise.

    Thanking you.

  3. shekhar says:

    Dear Sir,
    This is very very helpful information to me as I am looking for this type of claim as my 3 yrs old son has Cerebral Palsy. I have lot of expanses for medicines, physiotherpy, foods etc from last 3 yrs.
    I want to know that, is it possiable to file the return of income for last 2 yrs. pls advice

  4. Om says:

    Sir,
    My son is suffering from down syndrome (M.R.). He is going in a learning centre for which I am paying Rs. 75000 (approx.) annually. Can I avail deduction under section 80dd.
    Thanks

  5. Laxman Dhakne says:

    Excellent information to all tax payer eligible can be benefited.
    Still request to clarify disability certificate issued in FORM IV
    as per 30 Dec 2009 letter of ministry of social justice empowerment GOI is valid for tax purpose? It is signed by dist civil surgeon.

  6. Dear Sir,
    This is very very helpful information to me as I am looking for this type of claim as my 25 yrs old daughter has Cerebral Palsy.
    but some persons of pension department didn’t accept my IT (after my deductions as per IT rule)

  7. Pradeep Patil says:

    Section 80DD – Save Income Tax by Claiming Deduction on disabled dependent.

    To Claim Rs.50,000/- per annum, is it necessary to produce the bills to employer ????

    • Rayees fathima says:

      Sir,
      I have son with 70% disability and totally dependent on me. His day to day living expenses are borne by me. Can I claim for Income tax benefit u/S 80 DD while submitting the return 2016-17? His medical expenses are -nil- as on today.

  8. Will EPF employer contributions add in total income ?

  9. BHUPINDER SINGH says:

    please send more details

  10. G.SARWAR says:

    I can get tax exemtion for dependent brother school fees paid by my me.

  11. Cynthia says:

    Is maintenance cost of 100% disabled dependents included apart from medical expenditure?

  12. Fahad Kharadi says:

    what is the form no for mental illness plz let me ASAP

  13. Mukesh says:

    2 persons are handicapped in a family. So can I claim double rrabate in income tax. – See more at: http://www.taxdost.com/income-tax-advice/section-80dd-save-income-tax-by-claiming-deduction-on-disabled-dependent/#comment-12662

  14. Suryanarayana says:

    I have sister with > 80% disability with polio affected right side of the entire body and totally dependent on me. Her day to day living expenses are borne by me. Can I claim for Income tax benefit while submitting the return? Her medical expenses are very minimum as on today.

  15. A.HENRYRAJ. says:

    kindly sendme the format for getting taxdeduction for mentalillness

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