Deduction under Section 80DD & 80DDB

Ritik Chopra , Last updated: 01 March 2024
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Deduction in respect of maintenance including medical treatment of dependent that is person with disability [Section 80DD]

(i) Eligible assessee

This deduction is allowed to an individual who is resident of India or HUF.

(ii) Rate of Deduction

If the disability is between 40% and 80%	A fixed deduction of ₹75,000 is allowed from the gross total income for the previous year.
If the disability is more than 80% i.e., individuals who are dependents and have severe disabilities	The deduction allowed is also ₹1,25,000.

The assessee shall be allowed a fixed deduction of a sum of seventy five thousand (₹75,000) from his gross total income in respect of the previous year.

(i) Where such dependent is a person with severe disability the deduction will be allowed for ₹1,25.000.

(iii) Conditions

(a) The deduction is allowed if they have incurred:

Any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability or Paid or deposited any amount under a schedule framed in this behalf by the Life Insurance Corporation or any other insurer or the administrator of UTI or the specified company for the maintenance of a dependent being a person with disability.

(b) The scheme as referred above provides for payment of annuity or lump sum amount for the benefit of a dependent, 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.

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

(d) If the dependent, being a person with disability, predeceases the individual or the member of the Hindu undivided family an amount equal to the amount paid or deposited as per above 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.

(e) 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 in which the deduction is claimed.

In case where the condition of disability required 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.

Deduction in respect of medical treatment, etc. (Section 80DDB)

(i) Eligible assessee

This deduction is allowed to an individual or HUF who is resident in India only.

(ii) Conditions

(a) The assessee has actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board.

(b) The expenditure must be incurred for himself or a dependent, in case the assessee is an individual

(d) "Dependent" means :

in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,
in the case of a Hindu undivided family, a member of the Hindu undivided family.
dependent wholly or mainly on such individual or Hindu undivided family for his

support and maintenance.

(iii) Rate of deduction

(a) For a 'Non-senior patient' (Age below 60 years)	Amount actually incurred ; or a sum of ₹40,000, whichever is less, in respect of that previous year in which such amount was actually paid.
(b) For a 'Senior citizen' (Age 60 years or above)	Where the amount actually paid is in respect of the assessee or his dependent or any member of a Hindu undivided family of the assessee and who is a senior citizen, the deduction under this section shall be allowed for ₹1,00,000.

Here,

"Senior citizen" means an individual resident, in India who is of the age of sixty years or more at any time during the relevant previous year.

(iv) Treatment of medical insurance claim received

The deduction under this section shall be reduced by the amount received, if any, under insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred above.

(v) Copy of prescription [substitution of first proviso to Section 80DDB]

The deduction under this section shall not be allowed unless the assessee obtains, a copy of the prescription for such medical treatment from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist as may be prescribed.