Section 80DD - Maintenance and Medical Treatment of Dependant with Disability 

What is Section 80DD of income tax?

Section 80DD of the Income Tax Act of 1961 provides tax deductions to entities that hold the responsibility of caring for dependents with disabilities. 

Who are dependents? 

• Spouses

• Children

• Siblings

• Parents

• Members of HUF

The above entities must be dependent on the taxpayer! 

To avail this deduction, the below conditions must be met, 

• The taxpayer must opt to pay tax under the old tax regime.

• The deduction is only available for Indian residents.

• If the taxpayer is an individual, the dependents can be any family member, while in the case of a HUF, the dependents must be members of the HUF.

• The person you're caring for must have a disability that's certified to be at least 40% severe, based on the definition in the Persons with Disabilities Act, 1995.

• If the dependent has already claimed a deduction u/s 80U, the taxpayer will not be able to claim a section 80DD deduction. 

• The entity claiming this deduction must have a disability certificate issued by the right medical authority in a specific format (Form 10-IA). 

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Maximum Deduction Amount Allowed under Section 80DD

The deduction limit under Section 80DD is fixed, regardless of how much you actually spend. However, the amount deducted varies depending on how severe the disability is.

• If the disability is more than 40% but less than 80%, i.e., Normal Disability: Rs. 75,000.

• If the disability is 80%, i.e.,  Severe Disability: Rs.1,25,000. 

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Disabilities covered under Section 80DD

Section 80DD of the Income Tax Act of 1961 covers a range of disabilities for which deductions can be claimed. These include:

• Mental illness

• Cerebral palsy

• Leprosy-cured

• Autism

• Locomotor disability

• Mental retardation

• Blindness

• Low vision

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Dependant means-

In the case of Individuals, the spouse, children, parents, brothers or sisters

In the case of HUF, any member of the HUF is wholly dependent on the person for their livelihood.

Disability means -

"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 disabilities" 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);

Severe Disability means -

a person with eighty percent 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

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