Section 80DD of Income tax act

What is Section 80DD?

Section 80DD comes in the law of India Income Tax Deductions. This is a deduction in respect of medical and other maintenance available to an individual who: 

Incurs any form of medical treatment, training or rehabilitation expenditure of a disabled dependant; or

Deposits any amount in schemes framed under Life Insurance Corporation or Unit Trust of India for the maintenance of a disabled dependant.

A lump sum amount or annuity is paid to the dependant or to his/her nominee in whom the dependant draws the benefit incase of death of individual depositing money in the scheme.

Herein, the individual nominates either the handicapped dependant or any other person or trust to receive payment on his/her behalf for handicapped dependant’s benefit.

What if the handicapped dependant predeceases the individual?

In such a case an amount equal to the amount paid to be deposited shall be deemed to be the income of individual of the previous year in which such amount is received by the individual. Accordingly it shall be stated as the income to be chargeable under income tax as the income of the previous year.

How much will be the deduction in section 80dd of Income tax act?

The facility of deduction of Rs 50000 is available in general cases. If the severity of the handicap pf the dependant is high a deduction of Rs 1,00,000 is allowed (as per AY 2009-10).

What all documents are required to accomplish the process of deduction?

It is important for the individual to produce a copy of the certificate issued by the medical board either by Central or the State Government in the prescribed form. A copy of the income tax return of the same year must also be produced.

Who is a dependant?

The term dependant here refers to parents, spouse, children and siblings who are dependant on an individual for maintenance and other basic needs. Any of them must not have claimed for a deduction for their disability. This form of deduction is also applicable to Hindu Undivided Families (HUF).

    Related Articles
  1. Income Tax Exemption on Housing Loan
    As per Sec 24(b) of the Income Tax Act, 1961 in India a deduction up to Rs. 150,000 can be claimed as tax exemption on housing loan. This deduction is claimed towards the total interest that we pay on the home loan towards purchase or construction of house property while computing the income from house...
  2. e filing of Income Tax Return
    In this electronic age when IT is successfully performing in so many fields and providing services from online banking to online news, online mutual fund investments to online buying and selling, the Income Tax Department of India launched the Electronic Filing (External website that opens in a new window) of income tax returns. ...
  3. Income Tax Section 80C Deductions
    Income Tax Deductions section 80C Each year most of the people eagerly wait for the budget proposals to be announced for various reasons. One of the significant reasons is to know what all instruments of investments and deductions / exemptions have been included in the Section 80C of Indian Income Tax for employees, so that they...
  4. Income Tax for Indian Residents Working Abroad
    Income Tax for Indian Residents Working Abroad Indians from time immemorial have been a very enterprising and adventures tribe. They have always tried to find opportunities to seek employment suiting to their skill sets in far off lands. It is well known to us that one of our major foreign exchange earnings are the income...
  5. Income Tax for Pensioners on Pension Amount
    As already seen, TDS is the best medium of collecting income tax from the citizens without much of hassles, as the responsibility to deduct tax is not on the government, but on citizen-payers. Tax department accords a lot of importance to TDS as a source of generating revenue and to administering the TDS provisions more...