Section 80DD deduction available under the Income Tax Act, 1961 should be used by every taxpayer to reduce his tax liability.

Assessee Entitled

Every assessee being a resident individual or Hindu Undivided Family can avail deduction u/s 80DD.

Expenses applicable for Deduction

 Assessee can avail deduction of expenditure incurred towards the medical treatment including nursing, training, and rehabilitation of a handicapped dependent who is a person with disability.

Amount of Deduction

Fixed deduction of Rs. 50,000 is allowed if such individual or HUF –

1. Incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability; or
2. deposited or paid under a scheme framed in this behalf by the life Insurance Corporation or any other insurer, or the administrator or specified company and approved by the Board in this behalf, for maintenance of dependent, being a person with disability.

However, where such dependent is a person with severe disability, a higher deduction of Rs. 1,00,000 instead of Rs. 50,000 would be available.

Dependent

Dependent means the spouse, children, parents, brothers and sisters of the individual or any of them in the case of an individual and member of a HUF in the case of a HUF.

Condition for claiming

For claiming deduction u/s 80DD dependent (being a person with disability) should be wholly or mainly dependent upon such individual or HUF for support and maintenance and such person should not claim any deduction u/s 80U in computing his total income for the assessment year relating to the previous year.

Disability

For the above purpose Disability means Blindness, Low Vision, Leprosy-cured, Hearing impairment, Locomotor disability, Mental retardation or mental illness and “person with disability” means a person having any “disability” stated above of not less than 40%.

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