While Section 80U was for disabled person earning and maintaining themselves.
Section 80DD is for a person who is maintaning a disabled dependent
Deductions under Section 80DD is also for
75000 for Normal Disability and Rs 125000 for Severe Disability w.e.f FY 2014-15 (AY 2015-16)
(Earlier,the limit was 50000 for Normal Disability and Rs 100000 for Severe Disability)
This deduction only to
Who is Resident only
2) This deduction is only if assessee incurs expenditure on
(a) Medical treatment (including nursing), training and rehabilitation of a dependant
(b) Insurance Premium for maintenance of disabled dependent as per approved insurance scheme
(Mere maintenance of disabled and supply of food,water,accommodation not covered)
Amount Spent by assessee is NOT RELEVANT.
Even if he has spent some amount of
Training / Rehabilitation / medical treatment/or Insurance Premium
still full deduction of 75000/125000 is available
Meaning of Disabled Dependent
|In case of Individual||In case of HUF|
|Spouse||Any member of HUF|
|who is Wholly or mainly dependent on Individual||who is Wholly or mainly dependent on HUF|
This person should not have claimed deduction under Section 80U
Amount of Deduction
Type of Disability
Amount of Deduction
(80% or more disability)
Type of Disability (Same as Section 80U)
- Disability should be certified by Medical Authority
- Medical Authority shall give certificate of disability to Individual who is disabled
Only specified diseases covered which are same as mentioned in Section 80U
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotors disability
- Mental retardation
- Mental illness
- Cerebal palsy
- Multiple Disability
Severe disability means 80% or more disability
These diseases are covered in Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995
Q 1 Discuss the allowability of the following:
- Rajan has to pay to a hospital for treatment 62,000 and spent nothing for life insurance or for maintenance of handicapped dependent.
- Raja, a resident Indian, has spent nothing for treatment in the previous year and deposited 25,000 with LIC for maintenance of handicapped dependant.
- Rajan has incurred 20,000 for treatment and Rs. 25,000 was deposited with LIC for maintenance of handicapped dependant.
- Deduction is available even if actual amount spent is less
( Amount spent is not relevant, only condition is that at least some amount must have been spent)
Deduction in all of above cases is
75000 for Normal Disability and Rs 125000 for Severe Disability under Section 80DD
Amount spent is irrelevant
Mr. X is a resident individual. He deposits a sum of Rs. 50,000 with Life Insurance Corporation every year for the maintenance of his handicapped grandfather who is wholly dependent upon him. The disability is one which comes under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. A copy of the certificate from the medical authority is submitted. Compute the amount of deduction available under section 80DD for the A.Y. 2016-17.
Grandfather is not covered in definition of relative,hence no deduction
Note:-If it was father instead of grandfather,then deduction of 75000/125000 would have been available
- In case insurance premium paid for disabled the assessee should nominate himself as nominee. If disabled dies earliest then insurance compensation received shall be charged to tax.
- Sometimes medical authority gives certificate for limited period ,After that period a new certificate must be obtained. If not obtained deduction not available