Section 80DD of Income Tax Act

Section 80DD of the Income Tax Act allows tax deductions for expenses on dependents with disabilities (40%+ impairment), offering Rs. 75,000 for disability and Rs. 1.25 lakh for severe disability (80%+). Eligible claimants (individuals/ HUF) supporting disabled spouses, children, parents, or siblings can avail this benefit by submitting a disability certificate and medical bills. The deduction covers medical treatment, rehabilitation, and insurance premiums, providing significant tax relief while ensuring proper care for disabled dependents.
Home Loan
2 min read
30 July 2025

The Indian Income Tax Act provides numerous provisions and deductions to ensure that individuals with specific needs or responsibilities receive financial support. One such provision is Section 80DD, which offers relief to taxpayers who have dependants with disabilities. This section aims to alleviate the financial burden on individuals caring for disabled family members by providing deductions on the expenses incurred for their medical treatment and rehabilitation. In this article, we will delve into the details of Section 80DD and explore the eligibility criteria, allowable deductions, and other pertinent aspects.

What is Section 80DD of Income Tax Act?

Section 80DD of the Income Tax Act offers financial relief to individuals or Hindu Undivided Families (HUFs) who are supporting a dependent with a disability. This section allows a fixed tax deduction, regardless of how much you actually spend on the dependent’s care. It recognises the high costs often involved in medical treatment, training, or rehabilitation of disabled dependents, which can be a heavy financial burden. The purpose of this section is to ease that burden and offer some stability to families who are responsible for the care of a disabled member.

What is Section 80DD medical expenditure?

Taxpayers may claim a deduction under Section 80DD for the following:

  • Any amount spent on the medical treatment, training, or rehabilitation of a dependent family member with a disability.
  • Any amount paid or deposited into a scheme created by the Life Insurance Corporation (LIC) or any other approved insurer or administrator. These schemes must be approved by the Income Tax Department and should be specifically intended for the long-term care and maintenance of a disabled dependent.

This section is designed to offer financial support for both direct medical expenses and contributions to approved care schemes.

Eligibility for claiming deductions under Section 80DD

To be eligible for claiming deductions under Section 80DD of the Income Tax Act in India, taxpayers must meet specific criteria. Here is a summary of the key eligibility conditions:

  1. Taxpayer type: Individuals and Hindu Undivided Families (HUFs) are eligible to claim deductions under Section 80DD.
  2. Dependant with disability: The taxpayer must have a dependant with a disability. The term "dependent" refers to a spouse, children, parents, brothers, or sisters of the taxpayer.
  3. Certified disability: The disabled person must suffer from at least 40% of any of the specified disabilities mentioned in the Act. The disabilities include blindness, low vision, leprosy-cured, hearing impairment, locomotion disability, mental retardation, or mental illness.
  4. Residential status: The taxpayer should be a resident of India to be eligible for deductions under Section 80DD.
  5. Medical certification: To claim the deduction, the taxpayer needs to obtain a certificate in the prescribed form (Form 10-IA) from a medical authority. This certificate should specify the details of the disability and its extent.
  6. Dependence for maintenance: The disabled dependant must be dependent on the taxpayer for maintenance. This implies that the disabled person relies on the taxpayer for financial support.
  7. Nature of expenses: Deductions under Section 80DD are available for expenses incurred on the medical treatment, rehabilitation, or maintenance of the dependant with a disability.
  8. Quantum of deduction: The deduction amount depends on the severity of the disability. For disabilities falling in the range of 40% to 80%, the maximum deduction allowed is Rs. 75,000 (as of the financial year 2023-24). For severe disabilities (more than 80%), the maximum deduction is Rs. 1,25,000.

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Who are entitled to claim deductions under Section 80DD

Section 80DD of the Income Tax Act allows individual taxpayers and Hindu Undivided Families (HUFs) to claim deductions for expenses incurred on the medical treatment, rehabilitation, or maintenance of a dependant with a disability. The eligible individuals who can claim deductions under Section 80DD include:

  1. Individual Taxpayers: Any resident individual who is a taxpayer can claim deductions under this section. The taxpayer may be a parent, spouse, children, brothers, or sisters of the disabled person.
  2. Hindu Undivided Families (HUFs): HUFs are also eligible to claim deductions under Section 80DD if they are taking care of a family member with a disability.

It is important to note that to be eligible for the deduction, the disabled person must be a dependent on the taxpayer for maintenance. The term "dependent" in this context implies that the disabled person relies on the taxpayer for financial support.

Furthermore, the disabled person must suffer from at least 40% of any of the specified disabilities, including blindness, low vision, leprosy-cured, hearing impairment, locomotion disability, mental retardation, or mental illness.

What are the disabilities under Section 80DD?

Section 80DD of the Income Tax Act provides deductions for expenses incurred on the medical treatment, rehabilitation, or maintenance of a dependant with a disability. The section specifically mentions certain disabilities for which the deductions are applicable. As per the Act, the specified disabilities include:

1. Blindness:

Complete absence of sight or visual acuity not exceeding 6/60 or 20/200 (Snellen) in the better eye with correcting lenses.

2. Low vision:

Visual acuity not exceeding 6/18 or 20/60 (Snellen) in the better eye with correcting lenses.

3. Leprosy-cured:

A person who has been cured of leprosy but is suffering from:

  • Loss of sensation in hands or feet, leading to an inability to use them effectively.
  • Visible and disfiguring deformities.

4. Hearing impairment:

Loss of more than 40 decibels in the better ear in the conversational range of frequencies.

5. Locomotion disability:

The disability of the bones, joints, or muscles, leading to a substantial restriction of the movement of the limbs or any form of cerebral palsy.

6. Mental retardation:

Significant intellectual or mental impairment existing concurrently with an inability to perform activities of daily living.

7. Mental illness:

Any mental disorder other than mental retardation.

It is important to note that the specified disabilities should be certified by a medical authority in the prescribed form for the purpose of claiming deductions under Section 80DD. The severity of the disability, as certified by the medical authority, determines the quantum of deduction that can be claimed by the taxpayer. The deductions are subject to specific limits based on whether the disability is less severe (40% to 80%) or severe (more than 80%).

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Limitations of Section 80DD

There are certain rules and limitations under Section 80DD which must be followed:

  • The dependent must have a certified disability of at least 40% to qualify for the deduction.
  • The deduction is available for medical, training, and rehabilitation expenses of the disabled person, along with insurance premiums paid for specific schemes that are meant for their benefit.
  • The disability must be recognised under the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.
  • If the disabled person is already claiming tax deduction under Section 80U in their own return, you cannot claim Section 80DD for them.
  • A person with a disability (at least 40% impairment) entitles the taxpayer to a deduction of up to Rs. 75,000.
  • A person with a severe disability (80% or more) allows a deduction of up to Rs. 1,25,000.
  • The dependent must be fully or mostly reliant on the taxpayer. Eligible dependents include a spouse, child, parent, sibling, or any member of a HUF.
  • The deduction is allowed to the individual or HUF caring for the disabled dependent, provided the relevant medical certification and proof of expenses are submitted.

What is the maximum amount of deduction allowed under Section 80DD?

Under Section 80DD of the Income Tax Act, the maximum amount of deduction allowed is Rs. 75,000 for the medical treatment, training, and rehabilitation of a dependent with a disability. If the dependent has a severe disability (80% or more), the deduction limit increases to Rs. 1,25,000. This deduction is available to individuals and Hindu Undivided Families (HUFs) for expenses incurred on behalf of dependents who have a disability, ensuring financial support for their care and well-being.

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Different between Section 80U and Section 80DD

Section 80U and Section 80DD both provide tax deductions for disability-related expenses but cater to different beneficiaries.

Section 80U offers a deduction to individuals with disabilities themselves. The deduction is Rs. 75,000 for a disability and Rs. 1,25,000 for severe disability.

In contrast, Section 80DD is for families with disabled dependents. It allows deductions of Rs. 75,000 for a disability and Rs. 1,25,000 for severe disability. Section 80DD covers expenses for medical treatment, training, and rehabilitation of dependents with disabilities, ensuring financial relief for the caregivers. Both sections aim to support the financial needs of individuals with disabilities and their families.

Quantum of deduction

The amount of deduction allowed under Section 80DD is subject to certain limits. As per the provisions, taxpayers can claim a fixed deduction irrespective of the actual expenses incurred. For the financial year 2023-24, the maximum deduction allowed is Rs. 75,000 if the disability is not severe (i.e., between 40% to 80%), and it goes up to Rs. 1,25,000 for severe disabilities (i.e., more than 80%).

Documentation and certification

To claim the deduction under Section 80DD, taxpayers need to furnish a certificate from a medical authority, certifying the disability of the dependant. The certificate should be in the prescribed form and should provide details about the disability and its severity.

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Section 80DD of the Income Tax Act plays a crucial role in providing financial relief to individuals who shoulder the responsibility of caring for disabled family members. By offering deductions for medical treatment and rehabilitation, the government aims to promote the well-being of disabled individuals and ease the financial strain on their caregivers. It is essential for taxpayers to understand the eligibility criteria, documentation requirements, and quantum of deduction to ensure they can avail of the benefits provided under this section. Additionally, staying updated on any amendments to the Income Tax Act is advisable to make informed financial decisions, optimize tax planning strategies, and utilize tools like an income tax calculator.

Benefits of claiming under Section 80DD

Both individuals and Hindu Undivided Families (HUFs) can avail themselves of all deductions permitted under this Section, irrespective of the actual expenses incurred for the care of the dependent or the insurance premium payments.

There is no requirement to submit expense-related documents; however, a medical certificate issued by a certified physician confirming the dependent’s disability per government norms must be provided.

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Who is responsible for issuing the medical certificate for a dependent with a disability?

To claim deductions under Section 80DD, a valid disability certificate must be issued by any of the following medical professionals:

  • The Chief Medical Officer (CMO) or Civil Surgeon from a government hospital.
  • A qualified neurologist with a Doctor of Medicine (MD) in Neurology. For children, a paediatric neurologist with equivalent qualifications can also issue the certificate.

This certificate serves as proof that the dependent has the necessary level of disability and is essential for claiming the deduction.

Who is a disabled dependent?

A disabled dependent is someone who relies entirely or mainly on the taxpayer for care and has been certified as disabled by an approved medical authority. This includes family members such as a spouse, child, parent, brother, or sister. In the case of a Hindu Undivided Family (HUF), any member with a certified disability may be considered a dependent. To claim the deduction, the dependent must have a minimum of 40% disability as defined under the applicable laws and must not be claiming a deduction under Section 80U themselves.

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Frequently asked questions

Which diseases are covered in 80DDB?

Section 80DDB covers specified diseases such as malignant cancers, chronic renal failure, thalassaemia, AIDS, neurological disorders including dementia, dystonia musculorum deformans, Parkinson’s disease, motor neuron disease, and others as specified in the Income Tax Act of India.

How do I get an 80DD certificate?

To get an 80DD certificate, you need to submit all medical bills, disability certificate, Form 10-IA (in case of specified diseases) or Form 10-I (in case of a severe disability), and other relevant documents to the Income Tax Department. While gathering documentation for tax benefits, consider exploring your home financing options as well. Bajaj Finserv offers home loans with approval in just 48 hours*. Check your eligibility now. You may already be eligible, find out by entering your mobile number and OTP.

Can I claim 80D and 80DD both?

Yes, you can claim both 80D (for health insurance premiums) and 80DD (for maintenance including medical treatment of a dependant with disability) in the same financial year if you fulfill the conditions for both.

How long can a person claim a deduction under section 80DD?

A person can claim a deduction under section 80DD as long as the dependent relative for whose care and treatment the deduction is claimed is alive and disabled. Long-term financial planning for dependents with disabilities should include stable housing. Bajaj Finserv offers home loans with EMIs as low as Rs. 741/lakh. Check your home loan eligibility today. You may already be eligible, find out by entering your mobile number and OTP.

How much deduction can I claim if I have done expenditure of Rs. 15,000?

You can still claim the full deduction of Rs. 75,000 or Rs. 1,25,000 depending on the level of disability, even if the actual spending was Rs. 15,000. The deduction is fixed and does not depend on the exact amount spent.

What type of expenses are covered under Section 80DD?

Section 80DD covers costs related to treatment, nursing, training, and rehabilitation of the disabled dependent. It also allows deductions for any insurance premium paid under schemes specifically created for the care of disabled dependents by approved insurers such as LIC.

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

To claim the deduction, you need to submit a medical certificate in Form 10-IA. This certificate must be signed by an authorised medical professional and should confirm the presence and extent of disability, including conditions like cerebral palsy, autism, or multiple disabilities.

How long can a person claim a deduction under Section 80DD?

You may claim the deduction beginning from the financial year in which the certificate is issued. The deduction can be claimed each year until the medical certificate’s validity period ends, after which a new certificate may be needed for continued claims.

Who is a disabled dependent?

A disabled dependent is a family member who relies mainly on the taxpayer for support and is certified to have at least 40% disability by a recognised medical professional. This includes spouses, children, parents, and siblings, or members of a Hindu Undivided Family.

What are the disabilities considered under section 80DD?

Disabilities covered under Section 80DD include conditions such as mental illness, hearing impairment, mental retardation, cerebral palsy, autism, locomotor disability, and multiple disabilities. The dependent must have at least 40% disability as defined under the relevant Indian laws.

Can I claim deduction without submitting the proof?

No, you must submit valid medical certification from a recognised authority to claim the deduction under Section 80DD. Without this proof, the claim will be considered invalid by the Income Tax Department and the deduction will not be allowed.

What is Form 10IA?

Form 10-IA is a medical certificate issued by authorised government medical professionals, such as civil surgeons or neurologists. It is required to claim tax benefits under Sections 80DD and 80U and confirms the presence and severity of a person’s disability.

Who is eligible for Section 80DD?

Both individual taxpayers and members of Hindu Undivided Families (HUFs) can claim deductions under Section 80DD. To be eligible, they must be caring for a dependent with a certified disability and must have incurred eligible expenses or paid for an approved care plan.

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