What is Section 80-DD?
Updated on : Aug. 25, 2022 - 6 p.m. 17 min read.
Section 80-DD of the Income Tax Act, 1961 provides tax deductions to individuals who incur expenses towards the medical treatment of dependents with disabilities. This section is particularly beneficial for individuals who have dependents with disabilities and incur significant expenses towards their medical treatment and care.
Under section 80-DD, an individual can claim a deduction of up to Rs. 75,000 per annum for expenses incurred towards the medical treatment of a dependent with a disability. The deduction can go up to Rs. 1.25 lakhs if the dependent has a severe disability. The individual can claim this deduction irrespective of whether the dependent is financially dependent on them or not.
Deduction under section 80DD of the income tax act is allowed to Resident Individuals or HUFs for a dependent who is differently abled and– is wholly dependent on the individual (or HUF) for support & maintenance.
Below are the conditions you must meet to avail this deduction:
- The deduction is allowed for a dependent of the taxpayer and not the taxpayer himself.
- Dependent in the case of an individual taxpayer means spouse, children, parents, brothers & sisters of the taxpayer. In the case of a HUF means a member of the HUF.
- The disability of the dependent is not less than 40%.
The amount of deduction allowed is –
- Rs 75,000 (Starting from the financial year 2015-16) where disability is more than 40% and less than 80%.
- Rs 1,25,000 (Starting from the financial year 2015-16) where disability is more than 80%.
These deductions are allowed irrespective of your actual expenditure.