Under Section 80DD of the Income Tax Act, 1961, individuals and Hindu Undivided Families (HUFs) can claim a deduction from their gross total income for the maintenance and medical treatment of a handicapped dependent who is a person with disability.

Eligibility

To be eligible for this deduction, the following conditions must be met:

• The handicapped dependent must be a relative of the individual or HUF claiming the deduction. This includes parents, spouse, siblings, children, or any other relative who is a member of the HUF.
• The handicapped dependent must be a person with disability, as certified by a medical authority. This means that the person must have a disability of at least 40%. In case of severe disability, the deduction is allowed for a person with disability of at least 80%.
• The individual or HUF claiming the deduction must have incurred expenses for the maintenance and medical treatment of the handicapped dependent.

Amount of Deduction

The amount of deduction allowed under Section 80DD is:

• RS. 75,000 for a handicapped dependent with disability of at least 40% but less than 80%.
• RS. 1,25,000 for a handicapped dependent with severe disability of at least 80%.

The deduction is allowed irrespective of the actual expenses incurred for the maintenance and medical treatment of the handicapped dependent.

Documents Required

To claim deduction under Section 80DD, the following documents must be submitted:

• A certificate in Form 10IA attested by a medical authority certifying the disability of the handicapped dependent.
• Proof of expenses incurred for the maintenance and medical treatment of the handicapped dependent, such as medical bills, receipts, etc.

How to Claim the Deduction

The deduction under Section 80DD can be claimed by filing the income tax return in the prescribed form. The deduction is allowed from the gross total income to arrive at the total taxable income.

Additional Points to Note

• The deduction under Section 80DD is allowed in addition to other deductions under the Income Tax Act.
• The deduction is not allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the certificate of disability has expired.

FAQ QUESTIONS

Section 80DD: Deduction in Respect of Maintenance Including Medical Treatment of a Handicapped Dependent

Section 80DD of the Income Tax Act allows an individual to claim a deduction from their taxable income for expenses incurred towards the maintenance, including medical treatment, of a handicapped dependent.

Eligibility

To be eligible for the deduction under Section 80DD, the following conditions must be met:

• The individual must be a resident of India.
• The handicapped dependent must be a relative of the individual, such as a spouse, parent, child, or sibling.
• The handicapped dependent must have a severe disability of 40% or more.
• The individual must have incurred expenses for the maintenance, including medical treatment, of the handicapped dependent.

Amount of Deduction

The amount of deduction that can be claimed under Section 80DD depends on the severity of the disability:

• For a disability of 40% or more but less than 80%, the deduction is RS. 75,000.
• For a disability of 80% or more, the deduction is RS. 1,25,000.

Documents Required

To claim the deduction under Section 80DD, the following documents are required:

• A certificate in Form 10IA certifying the severity of the disability of the handicapped dependent.
• Documentary evidence of the expenses incurred, such as medical bills, receipts, and invoices.

FAQs

1. Who can claim the deduction under Section 80DD?

The deduction under Section 80DD can be claimed by an individual who is a resident of India and has incurred expenses for the maintenance, including medical treatment, of a handicapped dependent who is a relative of the individual.

2. What is the maximum amount of deduction that can be claimed under Section 80DD?

The maximum amount of deduction that can be claimed under Section 80DD depends on the severity of the disability. For a disability of 40% or more but less than 80%, the deduction is RS. 75,000. For a disability of 80% or more, the deduction is RS. 1,25,000.

3. What documents are required to claim the deduction under Section 80DD?

To claim the deduction under Section 80DD, the following documents are required:

• A certificate in Form 10IA certifying the severity of the disability of the handicapped dependent.
• Documentary evidence of the expenses incurred, such as medical bills, receipts, and invoices.

4. Can I claim the deduction under Section 80DD if I have incurred expenses for the maintenance, including medical treatment, of myself?

No, the deduction under Section 80DD can only be claimed for expenses incurred for the maintenance, including medical treatment, of a handicapped dependent who is a relative of the individual.

5. Can I claim the deduction under Section 80DD if I have incurred expenses for the education of my handicapped dependent?

No, the deduction under Section 80DD is only for expenses incurred for the maintenance, including medical treatment, of a handicapped dependent. Expenses incurred for education are not covered under this section.

CASE LAWS

Section 80DD of the Income Tax Act, 1961 provides for a deduction from gross total income in respect of maintenance, including medical treatment, of a handicapped dependent who is a person with disability. The amount of deduction depends on the severity of the disability.

Eligibility

• The assesses must be a resident individual or a Hindu undivided family (HUF).
• The handicapped dependent must be a relative of the assesses, as specified in Section 60(3).
• The handicapped dependent must be wholly or mainly dependent on the assesses for support.
• The handicapped dependent must be a person with disability as defined in Section 2(w) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

Deduction Amount

The amount of deduction is as follows:

• If the disability is 40% or more but less than 80%, the deduction is RS. 75,000.
• If the disability is 80% or more, the deduction is RS. 1,25,000.

Conditions for Claiming Deduction

The deduction can be claimed only if the assesses:

• Furnishes a certificate in Form 10IA issued by a specified medical authority, certifying the disability of the handicapped dependent.
• Pays an amount of at least RS. 10,000 towards the maintenance, including medical treatment, of the handicapped dependent in the relevant previous year.

Case Laws

There are several case laws that have interpreted the provisions of Section 80DD. Some of the important case laws are as follows:

• CIT v. MRS. Padmini Goswami (2011): In this case, the Supreme Court held that the deduction under Section 80DD can be claimed even if the handicapped dependent is not wholly or mainly dependent on the assesses for support.
• CIT v. Shri Ramesh Chand (2012): In this case, the Supreme Court held that the deduction under Section 80DD can be claimed even if the handicapped dependent is receiving any other income or pension.
• CIT v. Smt. Santosh Kumari (2014): In this case, the Delhi High Court held that the deduction under Section 80DD can be claimed even if the handicapped dependent is residing in a separate household.