Deduction in Respect of Maintenance Including Medical Treatment of a Handicapped Depended under Section 80DD

Income tax deduction under section 80DD in respect of maintenance including medical treatment of a handicapped depended, who is a person with disability

The following conditions should be satisfied:-

  • The taxpayer should be an individual or a HUF, resident in India.
  • The taxpayer opted both or any of the following options-

Option 1

Option 2

The taxpayer has incurred an expenditure

For the purpose of training and rehabilitation of dependent or his medical treatment

The taxpayer deposit in life insurance e corporation or any other insurer for maintenance of dependent

  • For claiming the deduction the assessee shall have to furnish a copy of the certificate issued by medical authority alongwith return of income in form no. 10-IA or in the case of disability requires reassessment, a fresh certificate from medical authority for claiming deduction. Download the Format of Certificate/Form 10-IA
  • The scheme provides for payment of an annuity or lump-sum amount for benefit of the dependent in the event of the death of disable person of the individual or a HUF.
  • Disable person means-
  1. In a HUF, dependent means a member of a family.
  2. A person who is dependent upon such individual or a HUF for maintenance or support.
  3. In the case of Individual, spouse, children, parents, brothers, sisters are dependent.
  4. Person with disability means a person having disability of not less than 40%.
  5. Who has not claimed any deduction under section 80U in relating previous year.
  6. Disability shall have meaning assigned to it in sec. 2(i) of the person with disabilities ACT, 1995.

Amount of deduction:

Where such dependent is a person with severe disability of 80% or above, shall be allowed for higher deduction 1,00,000 and the fixed deduction is Rs. 50,000 if conditions specified above are satisfied.

Reference: Section 80DD of the Income Tax Act

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,—

(a)  incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

(b)  paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,

the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year:

Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words “fifty thousand rupees”, the words “one hundred thousand rupees” had been substituted.

(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:—

(a)  the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;

(b)  the assessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.

(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) 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.

(4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed:

Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income.

Explanation.—For the purposes of this section,—

(a) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(b) “dependant” means—

(i)  in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;

(ii)  in the case of a Hindu undivided family, a member of the Hindu undivided family,

dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;

(c)  “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) 49[and includes “autism”, “cerebral palsy” and “multiple disability” 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)];

(d)  “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub-section (8) of section 88;

(e)  “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) 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);

(f)  “person with disability” means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) or clause (j) 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);

(g)  “person with severe disability” means—

(i)  a person with eighty per cent 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 (1 of 1996); or

(ii)  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 (44 of 1999);

(h)  “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).

One thought to “Deduction in Respect of Maintenance Including Medical Treatment of a Handicapped Depended under Section 80DD”

  1. Whether the treatment expenses of angioplasty can be claimed under Sec 80 DDB in case of a dependent super senior citizen ?

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