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(F) Deduction In Respect Of Maintenance Including Medical Treatment Of Handicapped Dependent — Section 8ODD


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 -

  3. 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.

  4. Who is Dependent Relative suffering from Disability -

  5. 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.

  6. 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.
  7. 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.
  8. Consequences if the dependant being a person with disability predeceases the individual or the member of the HUF [Section 80DD(3)]:

  9. 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.


Higher education would be allowed to persons with severe disability. For this purpose the definition of disability would be as mentioned in clause (t) of Section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

To mitigate the hardship of guardians of a dependant person it is now provided in the law to allow full deduction of the amount of 50,000 to remove eventuality of insistence by the Assessing Officer to produce evidence regarding the expenditure. Thus, this deduction would be allowable where the assessee has incurred any expenditure or made a payment in the LIC or UTI specified schemes. The deduction in the case of a dependent person with severe disability would be
` 1,00,000.


The Finance (No.2) Act, 2004 has extended the scope of deduction to cover a person with severe disability referred to in clause (o) of Section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income


    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U

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