Deduction u/s 80DD

This discussion clarifies the eligibility for deductions under Section 80DD of the Income Tax Act. Section 80DD specifically applies to expenses incurred for the care of a handicapped dependent. While an individual spent Rs. 2.00 lakhs on surgery and received Rs. 1,40,000 from insurance, the deduction under 80DD is capped at Rs. 25,000 and is contingent on the expenses being related to a disability.