Deduction in respect of Expenditure on Training / Medical Treatment of a Dependent, being a person with Disability [Section 80DD]

The provisions of section 80DD are given below—

1. Who can claim deduction -

   A Resident Individual or a Resident HUF can claim deduction under section 80DD.

2. What is the Qualifying Expenditure -

A resident individual/HUF can claim deduction under section 80DD, if he/ it has incurred an expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent relative (being a person with a disability).

Deduction can also be claimed, if the resident individual/ HUF has paid or deposited under any approved scheme of LIC (or any other insurer) or UTI for the maintenance of such dependent relative.

3. Who is Dependent Relative suffering from Disability -

In the case of an individual, “Dependant” means Spouse, Children, Parents, Brothers and Sisters, who is wholly and mainly dependent upon the individual.

In the case of Hindu Undivided Family (HUF), “Dependant” means any member (of the family) who is wholly and mainly dependent upon the family.

“Person with disability” means a person who suffers 40% or more of any of the following – Blindness, Low Vision, Leprosy-Cured, Hearing Impairment, Locomotor Disability, Mental Retardation and Mental Illness.

4. How much is Deductible under Section 80DD -

   • A fixed deduction of Rs. 75,000 is available.

   • A higher deduction of Rs. 1,25,000 is available if such dependent relative is suffering from a severe disability (i.e., having disability of 80 per cent or above).

   • Deduction under this section is available regardless of actual expenditure.

5. Certificate if any required -

   1. For claiming the above deduction, the assessee should have a certificate issued by the medical authority. This may be furnished to the Assessing Officer whenever he wants to examine it. Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned on the original certificate in order to continue to claim the deduction.

6. Consequences if the dependant being a person with disability predeceases the individual or the member of the HUF [Section 80DD(3)]:

If the dependant being a person with disability predeceases the individual or the member of the HUF in whose name money has been deposited, an amount equal to the amount paid or deposited under the scheme 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.