Section 80DD - Deduction for Disabled Dependent

According to Section 80DD of the income tax act of 1961, a taxpayer can claim a deduction for a disabled dependent. A disabled dependent can be an individual's brother or sister, spouse, parents, or children.

Who can claim deduction under section 80DD

• Any individual or a member of HUF can claim deduction under this section.

• An individual must be a resident of India. NRIs (non-resident Indians) are not eligible for the deduction under Section 80DD.

Conditions to be met before claiming deduction

• The individual should be dependent on the taxpayer to some extent.

• The taxpayer must bear the dependent’s expenses, which includes either the treatment and training & rehabilitation, or has paid the premium for a specific medical insurance policy designed for such cases.

• Dependents include sister, brother, spouse, parents, or children of the taxpayer.

• If the dependent has claimed deduction under section 80U, the taxpayer cannot claim deduction under section 80DD.

Quantum of Deduction

• Deductions are available regardless of actual expenditures. From the financial year 2015-2016, the deduction for the individual with more than 40% but less than 80% disability is Rs. 75,000.
• From the same financial year 2015-2016, the deduction for an individual with a disability of more than 80% is Rs. 1,25,000.

Before the financial year 2015-2016, the deduction for those with at least 40% disability was Rs. 50,000 and Rs. 1,00,000 for those with more than 80% disability.

Disabilities Covered Under Section 80DD

The following are the disabilities covered under section 80DD:

1. • Low vision
2. • Blindness
3. • Cerebral palsy
4. • Cognitive or several mental disabilities
5. • Leprosy-cured
6. • Hearing impairment
7. • Locomotor disability
8. • Autism
9. • Mental illness
10. • Or multiple disabilities.

Documents need to submit for claiming deduction under section 80DD

The following documents need to be submitted to claim deduction under section 80DD

Self-declaration certificate: Taxpayers are required to produce a self-declaration certificate indicating the amount spent on medical treatment, including nursing, rehabilitation, and training for the disabled dependent.

Form 10-IA: Form 10-IA must be presented in the instance of a disabled dependent who has cerebral palsy, autism, or multiple disabilities.

Medical certificate: Individuals must present a copy of a medical certificate issued by a medical expert to validate the disability.

Insurance premium receipts: It is not required to preserve the actual receipts of insurance premium as for most of the expenses self-declaration certificate will suffice. However, the deduction claimed for the insurance policies, taken for disabled dependents in that case receipts will need to be filed along with other documents.

Medical Certification

Medical professionals who can certify the disabled person:

• A civil servant or the chief medical officer (CMO) of any government hospital.
• A neurologist who has a degree in neurology and a doctorate in medicine (MD), or a pediatric neurologist with an equivalent degree, if the patient is a child.

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