🏥 Dependent Disability & Income
Summary Breakdown
Section 80DD Dependent Disability Guide
What Expenses Qualify Under 80DD?
Deduction is allowed for: 1. Medical treatment, nursing, training, and rehabilitation of a disabled dependent. 2. Payment made into approved LIC/insurance schemes for the maintenance of the disabled dependent.
Who Qualifies as a Dependent?
For Individuals: Spouse, Children, Parents, Brother, or Sister who are wholly or mainly dependent on the taxpayer. For HUFs: Any member of the Hindu Undivided Family.
💡 Pro Hack: Insurance Scheme Option
Buying a dedicated LIC policy for a disabled child (providing annuity after parents' lifetime) qualifies for Section 80DD tax exemption under the Old Tax Regime.
⚡ Flat Exemption Benefit
You do not need to keep individual hospital receipts or medicine bills. As long as Form 10IA certificate is present, the full ₹75,000 or ₹1,25,000 deduction is granted.
🛡️ Higher Sibling Tax Relief
If you support a disabled sibling who has no income, claiming Section 80DD saves up to ₹39,000 tax annually while supporting family welfare.
Section 80DD vs Section 80U Comparison
| Parameter | Section 80DD | Section 80U |
|---|---|---|
| Claimant Person | Taxpayer who supports disabled dependent | Disabled taxpayer claiming on own income |
| Standard Deduction (40%-79%) | Flat ₹75,000 | Flat ₹75,000 |
| Severe Deduction (80%+) | Flat ₹1,25,000 | Flat ₹1,25,000 |
| Simultaneous Claim Allowed? | No. Only one of 80DD or 80U can be claimed for the same person in a financial year. | |
⚠️ 3 Common Section 80DD Mistakes
- • Claiming Under New Tax Regime: Section 80DD is NOT allowed under the New Tax Regime. File under the Old Tax Regime to claim 80DD.
- • Dependent Claiming 80U Simultaneously: If the disabled dependent earns income and claims 80U on their ITR, the family member cannot claim 80DD.
- • Form 10IA Not Uploaded Before Filing: Ensure Form 10IA is uploaded on the Income Tax e-filing portal before submitting your ITR.
Frequently Asked Questions
What is Section 80DD of the Income Tax Act?
Who is considered a 'Dependent' under Section 80DD?
What are the deduction limits under Section 80DD?
2. Severe Disability (80% or higher disability): Flat ₹1,25,000 deduction.