What is Section 80DD?
Section 80DD of the Income Tax Act allows a resident individual or resident HUF to claim a deduction for expenses incurred on the medical treatment, nursing, training and rehabilitation of a disabled dependent. It may also cover payment or deposit under approved schemes for the maintenance of the disabled dependent.
Section 80DD Deduction Limits
| Disability Level | Deduction Amount | Important Note |
|---|---|---|
| 40% or more but below 80% | ₹75,000 | Fixed deduction, irrespective of actual expenses. |
| 80% or more | ₹1,25,000 | Higher fixed deduction for severe disability. |
Who Can Claim Section 80DD?
- Resident individual taxpayers.
- Resident Hindu Undivided Families.
- The deduction must relate to a disabled dependent, not the taxpayer’s own disability.
- The dependent should not claim Section 80U for themselves.
- A valid disability certificate should be maintained.
Documents Generally Required
- Disability certificate from the prescribed medical authority.
- Form 10-IA where applicable.
- Medical treatment, nursing, training or rehabilitation expense records.
- Proof of payment to approved insurance or maintenance scheme, if applicable.
Section 80DD vs Section 80U
Section 80DD is claimed by a taxpayer who supports a disabled dependent. Section 80U is claimed by an individual taxpayer who personally has a disability. Both should not be claimed for the same person in a manner that duplicates the benefit.