Section 80DD Deduction for a Dependent with Disability
Section 80DD of the Income-tax Act, 1961 provides a fixed deduction to an eligible resident individual or Hindu Undivided Family (HUF) for the care, medical treatment, training, rehabilitation or qualifying maintenance arrangements of a dependent person with a disability.
Who can claim the deduction?
A resident individual may claim for an eligible dependent spouse, child, parent, brother or sister. A resident HUF may claim for a dependent member of the HUF. The person with disability must be dependent wholly or mainly on the claimant for support and maintenance and must not have claimed a deduction under Section 80U for the same assessment year.
The claimant must have incurred expenditure on qualifying medical treatment (including nursing), training or rehabilitation, or paid or deposited an amount under an approved scheme for the maintenance of the dependent, subject to statutory conditions.
Section 80DD deduction limits
| Degree of disability | Fixed deduction |
|---|---|
| Disability of at least 40% and below 80% | Rs 75,000 |
| Severe disability of 80% or more | Rs 1,25,000 |
For example, if an eligible resident taxpayer spends Rs 35,000 on qualifying care for a dependent with certified disability of 60%, the statutory deduction may still be Rs 75,000, provided all applicable conditions are satisfied.
Meaning of disability and severe disability
The disability must be one recognised under the applicable disability law and certified by the prescribed medical authority. The general threshold for a person with disability is 40% or more, while severe disability means 80% or more. The certificate and applicable statutory definitions should be checked for the relevant assessment year.
Medical certificate and claim procedure
- Obtain a valid disability certificate from the prescribed medical authority, in the applicable prescribed form (including Form 10-IA where required).
- Retain supporting records for medical treatment, nursing, training, rehabilitation or payments into an approved maintenance scheme.
- Claim the deduction in the relevant income-tax return under the old tax regime, supplying the particulars required by the return form.
- Where a certificate has an expiry date, obtain a renewed certificate for the relevant period.
Supporting certificates generally need not be physically attached to an electronically filed return, but must be available if requested by the Income Tax Department.
Old tax regime versus new tax regime
Section 80DD is generally not available under the default new tax regime under Section 115BAC. An eligible taxpayer must choose the old tax regime in accordance with the applicable rules to claim this deduction. Check the return filing requirements and any applicable option deadlines.
Important conditions for approved maintenance schemes
Where the deduction is based on payments into an approved insurance or maintenance scheme, additional conditions apply. The Finance Act, 2022 introduced relief for certain schemes providing an annuity or lump-sum payment to the dependent on the subscriber attaining age 60 or more and ceasing payment, subject to prescribed conditions. Other schemes may provide benefits upon the subscriber's death. Early termination or payment can have tax consequences, so scheme documents should be checked.
Section 80DD versus Section 80U
Section 80DD is for an eligible taxpayer supporting a dependent with disability. Section 80U is for an eligible resident individual who personally has a disability. The same dependent cannot simultaneously claim Section 80U while another taxpayer claims Section 80DD in respect of that dependent for the same year.
Frequently asked questions
Is the deduction based on actual medical expenses?
No. The deduction is a fixed amount, provided qualifying expenditure or approved scheme payments and all other statutory conditions are met.
Can a non-resident claim Section 80DD?
No. Section 80DD applies to resident individuals and resident HUFs.
Can both parents claim Section 80DD for the same dependent?
The deduction should not be duplicated for the same qualifying expenditure or arrangement. Each claim must independently satisfy the statutory conditions.
Related income-tax deductions
Read the detailed guides on Section 80D medical insurance deductions, Section 80DDB specified disease treatment and general rules for Chapter VI-A deductions.
Tax provisions and eligibility depend on the relevant assessment year. This article describes Section 80DD under the Income-tax Act, 1961 and should be read alongside applicable legislation and filing instructions.