1. What is section 80DD?
There are several sections of the income tax act, of 1961. Section 80DD is one of them that allows deductions for the medical expenses of a dependent individual with disabilities or a differently abled person. Under Section 80DD any person can claim a deduction who is paying for the treatment of conditional suffering from a disability.
2. Who is eligible for deduction under section 80DD?
To avail of the deduction under section 80DD, a person should meet the following conditions.
- An individual can not claim a deduction under section 80DD if he/she already had claimed a deduction under section 80U for herself/himself.
- Residents individuals and Hindu Undivided Families can claim the deduction for disabled persons. But notably, non-residents are not eligible to avail of deductions under section 80DD.
- Individuals can not claim deductions for the paid medical expenses on themselves as per section 80DD.
- Any individual who wants to claim the deduction has to furnish a copy of the certificate provided by the medical authority.
- A person or any individual should have a disability of more than 40%.
3. Covered diseases under section 80DD
There are several disabilities mentioned in section 80U for individuals to avail of the tax deductions under section 80U. Some of the major disabilities are given below-
Blindness - This is a condition when an individual can not see anything because of the absence of sight. Those individuals have limited vision eyesight of 20 angles. These individuals are eligible to avail the tax benefits.
Locomotor disability - This is a disability that restricts movements of the body’s parts and any form of cerebral palsy because of the inability of bones and joints muscle.
Leprosy-cured -Those individuals who have recovered from this disease but due to the present effects, they are still going through it such as losing eyesight functioning, and hands movements along with feet can avail of the tax deductions under 80U.
Hearing impairment - Individual who suffers from are unable to hear the sound/frequencies of more than 60 decibels. These individuals fall under the category of section 80U.
Mental retardation - Individuals who have limited or incomplete mental development are considered under this disability.
Mental illness -Mental illness means a disorder related to mental health except for mental retardation.
Low vision - An individual with low vision who has impairment of visual functioning even after treatment or standard refractive modification but who uses or is capable of using eyesight to plan or execute a task with an appropriate device or gadget.
4. What details are mentioned in the certificate?
Once you get a certificate, Make sure to go through certain mandatory details that should be in the certificate. Following are the important details-
- Patient’s name and age
- Name of the parents
- Name of the disease or disability
- Registration number and address
- What kind of disability patient is suffering from (progressive/improvable/non-progressive)
- Signature of the patient
- Name of the hospital or institution
5. How to get a certificate under section 80U?
As per section 80U, It is mandatory to get a certified certificate of medical authority. A neurologist who is having a degree of Doctor of Medicine (MD) in Neurology (in the case of children, a Paediatric Neurologist has an equivalent degree) is A Civil Surgeon or Chief Medical Officer in a Government hospital.
6. Deduction limit under Section 80DD
|Type of Disability||Deduction Limit|
|Non-Severe Disability||Rs 75,000|
|Severe Disability||Rs 1,25,000|
7. Important things about section 80D
As per section 80DD, Individuals and Hindu undivided Families are eligible to claim the deductions. NRI or non-residents can not claim deduction under section 80DD. If an individual is qualified for a refund for the disability or disease then he/ she must undergo a refund and get a new certificate. During the fiscal year, the disability must be applicable. You don't have to furnish any medical proof. Regardless, you must get the certificate in Form 10-IA from the mentioned medical authorities. If the dependent individual dies before the taxpayer then an amount equal to the amount paid or deposited will be taxable as income.
Frequently Asked Questions
What is 80DD in income tax?
Section 80DD of the income tax act allows individuals to claim deductions for disabled persons of 40%
Who is eligible for 80DD?
Residents individuals and Hindu Undivided Families can claim the deduction for disabled persons. But notably, non-residents are not eligible to avail of deductions under section 80DD.
Can I claim both 80DD and 80U?
Although Both sections 80DD and 80U are the same and allow individuals to claim the deduction for the medical expenditure but yet it's not possible to claim both sections together.
Is 80U allowed in new tax regime?
Yes. Section 80U is allowed in the new tax regime. Taxpayers can claim deductions under section 80U along with section 80C, section 80D, and 80E, etc.
What is severe disability for 80u?
As per section 80DD, a severe disability or disease is defined where an individual suffers from then 80% or more disabilities or diseases.
Difference between the sections 80U and 80DD?
Section 80DD provides the tax deductions for the family or kin with a member of disability but section 80U enables individuals to avail of the tax deduction who are suffering from disabilities or diseases himself as per the income tax act 1961.
Can I show medical bills in ITR?
Yes. A taxpayer can present medical insurance paid for a self spouse, children, or dependent parents to save tax while filing an income tax return.
What is the limit for 80DD?
Section 80DD has a limit of Rs.75,000 for the medical expenditure, nursing, and treatment of a person who suffers from a disability. But if the person suffers from a severe disability or disease can claim a deduction of up to 1,25,000 in a fiscal year.
Is it allowed for NRI to claim deduction under section 80DD?
No. NRIs are not eligible for claiming the tax deduction under section 80DD. Individuals who want to claim deduction under section 80DD needs to be a resident of India.
Can I claim section 80U and section 80DD together?
No. It is not permitted to claim deduction under sections 80DD and 80U concurrently. Under Section 80DD any person can claim a deduction who is paying for the treatment of conditional suffering from a disability. If an individual is certified by the medical authority to be a person with a disability or disease then he/she is eligible to claim the tax deduction during the financial year Under section 80U.