Articles
Have a disabled dependent? Save income tax using section 80DD
If yes, you could be saving income tax under section 80DD of the Income Tax Act.
[Article inspired by a query from reader M K Pratap]
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Having a disabled dependent can be a very big responsibility. Apart from being fully responsible for the person, you can also incur a lot of expenditure for them.
The Income Tax Act comes to your rescue in this situation. Section 80DD of the IT act provides you a facility of claiming a deduction if you have a handicapped dependent. |
How much income tax can you save?
The deduction allowed is Rs. 50,000 / Rs. 75,000 depending on the extent of the disability of your dependent.
A deduction of Rs. 50,000 is allowed if you have a disabled dependent. Whereas a deduction of Rs. 75,000 is allowed if your dependent has severe disability.
Remember: this is a lump-sum deduction, and doesn’t depend on the amount that you spend on the disabled dependent.
The income tax that you can save would depend on the tax bracket that you fall into – it can range from Rs. 5,000 to Rs. 15,000 (for Rs. 50,000 deduction) or from Rs. 7,500 to Rs. 22,500 (for Rs. 75,000 deduction).
(To know the current income tax slabs, please read “Budget 2008 – Impact of Income Tax Slab / Bracket Changes on You”)
How do you qualify for this deduction?
You can claim deduction u/s 80DD if:
1. You spent on the medical treatment, training and rehabilitation of a disabled dependent (Amount spent for nursing is considered as expenditure on medical treatment)
Or,
2. You paid an amount for a scheme (offered by Unit Trust of India (UTI), Life Insurance Corporation (LIC) or any other insurer) meant to take care of the maintenance of your disabled dependent in case of your untimely death.
Some considerations for the insurance premium
- Not all schemes qualify – there are specific schemes meant for this purpose. Life Insurance Corporation (LIC) has a policy specifically for this purpose – it is called Jeevan Aadhar Plan.
- The policy has to insure your life. That is, it should be in your name.
- The policy has to pay an annuity (a fixed amount every year) or a lump sum amount for the benefit of the disabled dependent
- As the nominee for the policy, you need to name either (a) your disabled dependent, or (b) any other person or trust that would receive the money for the benefit of your disabled dependent
- In case your disabled dependent predeceases you (that is, dies before you), the amount in the policy is returned to you. This would be treated as your income for the year in which you receive it, and would be fully taxable in your hands.
What is considered as disability?
Disability would be as defined by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.
It includes the following:
- Blindness
- Low vision
- Leprosy-cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
A person with disability means a person suffering from not less than 40% of any of the above disabilities.
Severe disability means 80% or more of one or more of the above disabilities.
Who is qualified to claim this deduction?
Any individual or a Hindu Undivided Family (HUF) can claim this deduction.
Please note that the individual or HUF has to be a resident of India – a non-resident Indian (NRI) can not claim deduction u/s 80DD.
Definition of relative: Who can be your disabled dependent?
For individuals, your spouse, son / daughter (any child), parents and brother / sister (siblings) can be your handicapped dependents.
For HUFs, any member of the HUF can be a disabled dependent.
The disabled person should be wholly or mainly dependent on you for his / her support and maintenance, and should not have claimed deduction under section 80U.
What are the requirements?
You need to have a proof of disability for your dependent to claim deduction under section 80DD. You need to get a certificate of disability from relevant medical authorities.
For people having Autism, Cerebral Palsy or multiple disabilities, form number 10-IA needs to be filled up. There are two other formats for mental illnesses and all other disabilities.
(Please scroll down to download the forms / formats / specimen)
The relevant authorities who can sign these forms are:
- A Neurologist having a degree of Doctor of Medicine (MD) in Neurology (or, in case of children, a Pediatric Neurologist having an equivalent degree)
or
- A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital
Downloadable Forms
Here are the forms (or format of certificates) that you would require to claim deduction under section 80DD.
| Form / Format | Purpose |
| Download Form 10-IA | For Autism, Cerebral Palsy or multiple disabilities |
| Download the format | Certificate of mental retardation |
| Download the format | Certificate of any other disability |
(You need to be logged-in to download the forms / certificate formats. Please take advantage of the free registration that takes less than a minute. To know the benefits of registration, please click here.)
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Comments
Add a new CommentYou should be able to claim deduction u/s 80DD.
The amount depends on the percentage of disability - if it is certified as 90% by the authorities, you should be able to claim deduction of Rs. 75,000. Else, it would be Rs. 50,000.
Just now I got reply from my office finance dept. saying tat i should ve spend some amount i.e. for medical , insurance etc.But i ve not done any of these.
So still would i be eligible to get this deduction.
If possible can u give me a link or some kind of reference in order to show the same at office .
Thanks Alot In advance Raag
Just now i got a reply from my finance dept. (At Office) that i can claim this only when i HAD spent for some medical treatment or if i ve some Insurance policy on her name
but right now i dont ve both.SO i am asking only for maintaince cant i be eligible.
Plz help
I am not spending anything for her treatment(not needed actually) nor any LIC I ve .
So still, can i claim the deduciton under 80dd for supporting my sis or for her maintainance
Thanks alot for ur reply in advance
Feb 10, 2009
My 15 year old daughter is MR, and distt.medical board declared her in moderate catagory.I am a central govt. servant.I want to know that is it necessary to produce the details of expences done on the child to get exemption of Rs. 50,000/- and if it is not necessary, then what document should I produce in my office ?
No problem at all - I am glad that I could help.
You office is in fact right - you need to have spent some amount on medical treatment of your dependent to claim this deduction.
But remember - section 80DD does not specify that you can only claim the spent amount as deductible. So, even if you spend Rs. 100 on the dependent, you can claim the full Rs. 50,000 / Rs. 75,000 as deduction.
Here is a link to the relevant section:
http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section80DD.htm
as mentioned in the previous comment's reply, you do need to have spent some amount on medical treatment of your dependent to claim this deduction.
However, Sec 80DD does not specify that you can only claim the spent amount as deductible.
So, even if you spend Rs. 100 on the dependent, you can claim the full Rs. 50,000 / Rs. 75,000 as deduction.
The main document that you would need is certification about the disability - it has to be greater than or equal to 40% to get this benefit.
Feb 17, 2009
Section 80DD says that you can deduct Rs. 50,000 / Rs. 75,000 from your income if you have spent on medical treatment of a disabled dependent or if you have paid premiums of certain insurance policies.
It DOES NOT say that the amount spent is deductible upto Rs. 50,000 / Rs. 75,000. Thus, the interpretation is that Rs. 50,000 / Rs. 75,000 is deductible irrespective of the amount actually spent by you provided that you have spent something. (So, you still need som proof about the expenditure)
You can probably take the opinion of a practising chartered accountant (CA) since the amount involved is not small. If your company still doesn't agree, you can claim the deduction in your IT return and claim a refund.
(You can also check the exact wording of the section here: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section80DD.htm
Feb 24, 2009
I am in the same problem as written above by R. Kulkarni.
I have PH dependant and my office is asking to show full 50,000/- expenditure on medical treatment or LIC Jeevan Adhar or UTI.
I am spending Rs 77000/- for education of my PH dependant. But my office is not accepting this educational expenditure towards "maintenance (training and rehabilitation) of PH dependant".
I am informed that training and rehabilitation (given in section 80DD) will be considered in medical training and Medical rehabilitation only.
I am also informed that education will not come under training and rehabilitaion.
I am planning to approach CA. I request your guidelines
Thanks
Narayana
Your office is right in saying that amount spent on education can not be counted towards section 80DD expenditure. The expenditure has to be on medical treatment, or related things like payment for a nurse, etc.
However, as I mentioned to Mr. Kulkarni, my interpretation of section 80DD is that if you have spent ANY amount on mendical treatment (or premium payment), you should be allowed the full deduction of Rs. 50,000 / Rs. 75,000.
It would be appropriate to consult a practising chartered accountant (CA) regarding this.
One request: Can you update me & all the readers about the CA's opinion through the comments here? That way, all of us would benefit!
Thanks.
Feb 26, 2009
thanks
Cancer is not considered a disability, and therefore, you would not be able to claim any deduction under section 80DD.
However, you should consider section 80DDB, through which you can deduct any amount paid towards medical treatment of certain diseases - including melignant cancers.
You can deduct upto Rs. 40,000 (Rs. 60,000 for senior citizens) from your income. You can also claim deduction for amount spent on certain disabled dependents, including your parents.
Please read "Deduction of expenses on medical treatment – Section 80DDB" for all the details.
Mar 03, 2009
my mother has vision impaired one eye 100% damaged other eye 70% damaged. the civil hospital doctor is not writing % damage on certificate.
How can i claim 80 dd rebate? I do not spend any money on her treatment but give some money for care.
kindly help urgently
It is necessary for the doctor to write the percentage of disability on the certificate, as the deduction is allowed only if the disability is at least 40%.
Please talk to the doctor and explain the situation to him.
Also, it is necessary to spend some amount on the medical treatment or medical care (like for a nurse) - giving money for taking care of day-to-day expenses does not make you eligible for this deduction.
Mar 04, 2009
kindly help urgently
Probably your company people are asking for it in the prescribed format. You can download these formats from the article above (you need to be logged-in).
If the company people still don't agree, you can claim the deduction in your IT return and get a refund.
Well, a private certificate would not do. It has to be in the prescribed format as mentioned in the article.
Claiming it in IT return:
If the company people do not agree, it means they would be cutting more TDS from your salary.
You can claim the deduction in your IT return (under chapter VI deduction). Thus, your taxable income would reduce, and the corresponding tax would also reduce.
Since your company would have cut more TDS than necessary, you can claim a refund.
Mar 09, 2009
Hi
My son is 5 years old. He is totally depending on me I want to know what is the criteria of tax saving and any suggesions for me.
The tax benefit is available only if the dependent is mentally or physically challenged. So, if your son doesn't fall in that category, no income tax benefit would be available to you.
However, if you pay tuition fee for your son, it would be deductibel from your taxable income under section 80C.
Please read "Saving Income Tax – Understanding Section 80C Deductions" for more.
Mar 10, 2009
Deductions under both sections 80DD and 80DDB can not be claimed for the same person.
(IN any case, I do not believe mental retardation is covered for claiming deduction u/s 80DDB)
Mar 12, 2009
Mar 12, 2009
Deductions under sections 80DD and 80DDB can not be claimed simultaneously for the same person.
Also, I do not believe Autism is covered for claiming deduction u/s 80DDB.
In any case, you should be able to claim deduction under section 80DD as you are spending on your son's medical expenses and therapy. (The insurance policy wouldn't count as it is not in your name).
If you provide the documentation prescribed in this article, your employer would consider this deduction while calculating the TDS.
Mar 15, 2009
one eye of my mother has zero vision other eye has 6/36 can i claim 80 dd benifit.
if yes how
If you can get a certificate of disability from relevant medical authorities, you should be able to claim the deduction.
Mar 25, 2009
My salary particulars are as under
Total Salary: Rs.2,32,000/-
PF AND PLI : Rs.23,000/-
PROF TAX: Rs.1800/-
Recently I have purchased a plot for construction of house by availing a Staff Housing Loan. 20 % of total eligibility is released for purchase of plot by the Bank.
I have to constuct the house as per guidelines by the Bank (i.e., within 24 months).
I have incurred the following expenses from my savings:
Registration Fee : (Stamp duty): Rs.43,200/-
Housing Loan Interest: Rs.20,000/- (Availed Rs.4,00,000/- July 2007).
Instalments of loan released for the purpose of house: Rs.25,000/-.
Please guide me how much expenses i can deduct from my sources.
--------------------------------------------------------------------
Secondly Recently My father expired who was treated for paralysis. Total Medical expenses incurred by me Rs.35,000/- and I got the reimbursement of Rs.19,000/(Not included in my Total salacy mentioned above). Sir, Can I deduct Rs.16,000/- from my salary ?
Please kindly send your advises to my email ID
GRK_KGR@yahoo.com
The professional tax would be fully exempt from income tax.
I am not sure what you mean by PLI, but the amount paid for PF would be deductible from your income under section 80C.
(Please read "Saving Income Tax – Understanding Section 80C Deductions" for full details)
Since the construction of the house is not over, you would not be able to claim the registration / stamp duty as deductible from your income.
For the EMIs and interest paid through them, you would be able to claim income tax benefit only after you get possession of the house.
(Please read "Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage" for full details)
Amount spent on medical treatment (self or some dependents) can be deducted from your income under section 80DDB.
However, it is only for certain specified diseases. Paralysis is not covered there - so, you would not be able to deduct Rs. 16,000 from your income.
(Please read "Deduction of expenses on medical treatment – Section 80DDB" for full details)
Mar 27, 2009
You can not claim deduction under both 80dd and 80ddb at the same time.
Claiming deduction under section 80dd would be better in your case, as it gives a higher deduction of Rs. 75,000 for severe disability.
Apr 17, 2009
My father is physically handicaped due to spinal injury...Also we have Govt medical board certification for the illness .I got Tax exeption for 75000 in my all previous organization.But for my curent organization does not considering the following section like 80G 80DD.
So please guide me how to get tax benifit in this case.
Thanks and Regards,
Mothilal Amarnath
Apr 17, 2009
Apr 20, 2009
I fail to understand how ca company can not consider these sections! In any case, please try talking to your HR or Finance department and try to convince them.
If they still do not agree, the only option for you is to claim these deductions when you file your return, and claim a refund.
Don't worry - you would get you due deduction one way or the other!
A request: Since you have been claiming these deductions, can you please write about your experience (getting the certificate, etc) so that our fellow readers can also benefit? Thanks!
These are state subjects, and the rules depend on the state you are living in. Therefore, you would need to check rules specific to your state. Following are some websites that you can consider.
A request: Since you have been claiming the 80dd deduction, can you please write about your experience (getting the certificate, etc) so that our fellow readers can also benefit? Thanks!
http://www.maharashtra.gov.in
Government of Maharashtra
http://finance.mah.nic.in
Finance Department, Maharashtra
http://www.delhisalestax.com
Sales Tax, Delhi
http://www.tnsalestax.com
Sales Tax, Tamilnadu
http://www.rajtax.net
Sales Tax, Rajasthan
http://goidirectory.nic.in
Official Directory of Government Website
http://www.incometaxmumbai.nic.in
Income Tax Mumbai
http://www.mumbaicustoms.gov.in
Mumbai Customs
http://www.apcommercialtaxes.gov.in
Salestax, Andhra Pradesh
http://www.bihar.nic.in/comtax/Welcome.htm
Salestax, Bihar
http://www.gujaratsalestax.gov.in
Salestax, Gujarat
http://www.haryanatax.com
Salestax, Haryana
http://hptax.nic.in
Salestax, Himachal Pradesh
http://www.jharkhandcomtax.nic.in
Salestax, Jharkhand
http://www.kar.nic.in/ctax
Salestax, Karnataka
http://www.kerala.gov.in/dept_taxes
Salestax, Kerala
http://www.mptax.net
Salestax, Madhya Pradesh
http://ori.nic.in/salestax
Salestax, Orissa
http://stpam.org
Salestax Practioner Association, Maharashtra
http://goagovt.nic.in/documents/salestax/index.htm
Sales Tax, Goa
http://wbcomtax.nic.in
Sales Tax, West Bengal
http://www.pextax.com
Government of Punjab
http://goi.nic.in
Government of India
http://www.salestaxindia.com
Insta VAT
http://www.manipurtaxation.nic.in/VAT/VATwelcome
Vat in Manipur
http://www.daman.nic.in/
VAT in Daman
http://meghalaya.nic.in
VAT in Meghalaya
http://dgft.delhi.nic.in
Directorate General Foreign Trade
http://gov.ua.nic.in/finance/index.htm
Uttaranchal
http://finmin.nic.in/index1.html
Govt. of India, Ministry of Finance
http://tripura.nic.in/taxes
VAT in Tripura
http://www.meraconsultant.com
Mera Consultant
http://www.comtax.cg.nic.in
Government of Chhatisgarh
http://chandigarh.nic.in/tax/welcome.html
Chandigarh
(Taken from http://www.caclubindia.com/experts/experts_message_display.asp?group_id=32646)
Please see the above answer (Re: 70 % ph)
May 08, 2009
My fathers sister (my aunt) has 99% mental retardation. Can I claim deduction under Sec 80DD. She is completely dependent on me since my father is retired now.
Only your spouse, child, parents or siblings can be considered as your handicapped dependents.
Therefore, unfortunately, you would not be able to claim any deduction.
May 18, 2009
I have disability 75%. So, how much can i clain from these section. What is difference between 80DD and 80U. And, what amout can i clain from these two section seperatly. Here, my dought is by producing the certificate itself can we claim or is it compalsory make LIC to dependents. In that mean, total, how much can i claim for disable person.
Thanks
-Madhav
May 23, 2009
Had a request to you for my friend, who is having disability of 42%.
I would like to know about the benifits in the professional tax and transport (Indian railways)/ concessions if any.
Jun 01, 2009
I need your advice to claim IT benefits under Sec80DD.
My son was born with a congenital anomlay- missing phalanges in total on his right hand. he doesnt have any of the five fingers. We have started surgeries to atleast get his right hand to assist in some way, though it is not possible to rebuild the same. In this process, we are incurring expenditure which as of now, are not eligible to be claimed under any available insurance schemes- government and private, because this being an external congenital anomaly. Please advice for claims under Sec80DD or anything else.
80DD is for a disabled dependent, whereas 80U is to claim deduction if a person is dependent himself.
A claim can not be made under both sections together. So, for you, section 80U would be applicable.
For all the details like the procedure and the deduction allowed, please read "Are you disabled? Save income tax under section 80U".
I would do some research and write an article about it. Thanks for suggesting a good topic for an article!
I am sorry, but I do not think that this is covered under any section of the IT act. Therefore, you would not get any income tax benefit for this.
Section 80DDB does deal with deductions with respect to medical expenditure, but even that section is for specific diseases, and your treatments would not qualify.
I want to claim tax deduction under Section 80DD. for this do I need to submit any expinditure proofs? Please guide me regarding this.
Thanks&Regards,
Ram
The relevant details have been mentioned in the article.
Jul 20, 2009
I was going through your site and decided to write to you for advice.
My son has a rare genetic diorder called Duchenne Muscular Dystrophy. Though there is no cure currently, experts in the field (globally) are optimistic that a cure can be realistically expected by 2011 or 2012. However the treatment that is going to come will be really expensive. A conservative estimate would be around Rs 1 Cr an year. My husband is a defence officer and we have no means to earn this kind of money.
We were thinking of starting a trust or a simple bank account in his name so that friends and relatives (in India and abroad) could donate on a regular basis so build up some corpus so that by the time we are in 2012 we can think of starting our son on the treatment.
Request you to please guide us on how to go about it and also the tax implications of the same. We are totally ignorant about all this and just want to do something for our son
Your advice will be trully valuable. Look forward to hearing from you on the same.
Thanks and regards
I am sorry to hear about your situation. Let's hope that the sure is invented soon...
In my opinion, starting a trust would be a very good option. You can create a trust with the sole beneficiary being your son.
A trust would be a separate legal entity, which means that all the deductions (section 80C, etc) would be applicable to investments made for it. Also, the basic exemption limit of Rs. 1.6 Lakhs would also be applicable to it.
Thus, creating a trust and investing through it would be more tax efficient than investing yourself.
You can also try to apply and get certification for 80G deduction (people donating get 50% deduction of donated amount for income tax). This would help you provide an incentive to donors.
Wish you luck in collecting the necessary amount...
Jul 29, 2009
I have two kids 11yrs & 8 yrs both are with 70% & 90% declared disablity by the medical board of govt hospital & both are spastic children.
My request is please let me know how much amount of exemption I can avail in income tax return? Can I avail exemption saperately for both children (Rs. 75000X2) or only up to Rs. 75000/-
With Regards
Devender Gupta
Jul 30, 2009
Let me know the expeses incurred after treatment of Angioplasy of sr citizen are cover u/s 80-dd or any other sec of IT act.
In my opinion, the exemption amount is a total amount irrespective of the number of children with disability.
Therefore, you would not be able to claim the deduction twice if you have 2 children with disability.
Angioplasty is not covered in the list of disabilities covered under section 80DD.
Therefore, you would not be able to claim any tax benefit for this treatment.
I am not sure if down syndrome is classified as mental retardation. I believe the best authority to comment on this would be a doctor from a government hospital.
The certification would be as mentioned in the article.
Oct 23, 2009
I want to file tax returns for 2008-09 with claiming benifit from section 80DD. Is it possible to file returns now for 2008-09? If possible upto which month can I file returns?
Yes, you can file a revised return any time - there is no time limit.
Thanks you for such good and wide range of infomation.
I want to know that can i claim deduction for two disble dependent in section 80dd or 80 u
if yes then how much i can claim plz let me knw.
Dec 07, 2009
I want to claim tax deduction under Section 80DD. for this do I need to submit any expinditure proofs? Please guide me regarding this.
Thanks&Regards ;-dheeraj
Dec 19, 2009
Thanks.
Dec 21, 2009
Mt Query is that my dad got a brain stroke in 2007 and till date his entire body is paralysed.
The brain stroke was severe and due to the same, he cannot even move his eyelids, no voice...i mean completely paralysed. We feed him via rice tube etc etc
Due to the same we incur medical, nursing etc of around 22,000 every month.
Can we claim the said expenditure under section 80 DD
Can I get the authorization from Neurologist, as mentioned?
Dec 30, 2009
we have spent some 4 lakh on treatment .my father as a retired gov person got re-imbursed only 1.5 lakh .
Can I claim deduction under 80DD .what's the requirement .what papers i need to submit??
Dec 30, 2009
Jan 04, 2010
we have spent some 4 lakh on treatment .my father as a retired gov person got re-imbursed only 1.5 lakh .
Can I claim deduction under 80DD .what's the requirement .what papers i need to submit??
which forms i need to submit..
or if i take LIC jeevan adhar policy for my mother suppose for Premium Rs 10,000 . How much I can claim for deduction ?
10000 premium or 1 lakh or both ??
Jan 08, 2010
My dad suffered a heart attack and brain stroke. He was in a state of coma (no hand movement no leg movement, no response) for a period of more than 2 weeks. Later on he expired.
I have incurred the complete hospital charges of more than rs 2.5 lakh.
Am i eligible to claim deduction under section 80DD.
Thanks
Prasad
MAH_JAIN@REDIFFMAIL.COM
Jan 21, 2010
Thanks,
Murugesan
Please give me a % criteria for blindness. Completely or Partially. On which ground they are considering the %. Poor vision has how much %. This I want to know the ground as far as medical term is concern. Tell me % of vision loss for disability certificate.
D N Kapadia
Feb 07, 2010
My mother is suffering from Multiple Myloema and undergoing treatment in a private hospital in Mumbai. Can the doctor of this hospital sign on Form 10 IA? we are not able to find any oncologist working with a government hospital in Mumbai.
Feb 10, 2010
Feb 16, 2010
Feb 22, 2010
can i claim exemption under 80DD.
Mar 08, 2010
Mar 09, 2010
Apr 23, 2010
Please advise under which section of IT Act, the same is permitted. Also, give the precise picture on the subject matter.
With Regards
A K Nair
May 31, 2010
Jun 01, 2010
his deduction ? Her DDO called him that he will not deduct 80DD from his salary.
Jul 27, 2010
My father aged 80 years old is fully deaf and he receives a Railway pension for Rs 8000/- per month.Am I eligible to claim income tax rebate under sec 80DD on the basis of incurrence of maintenance expenses on my father by purchasing LIC scheme "Jeevan Aadhar"?
Can you please clarify this issue?
Regards
R.Ramkumar



















Also My dad is retired person ,so my sis is fully dependent on me.
Can i claim deduction for this case either in section 80dd or 80 u
& how much i can claim plz let me knw.
Thanks Alot in advance Raag