Meaning

This section allows deduction to resident Indiviuals (I) or Hindu Undivided Family (HUF) for a dependent who is differentially abled and who is fully dependent on them for support and maintenance.

Deduction Allowed under this Section

Fixed amount of deduction is allowed u/s 80DD which depends on the severity of disability.

i) If disability is more than 40% but less than 80% - Rs. 75000
ii) If disability is more than 80% - Rs.125000

Disabilities Covered under this Section

• Mental illness
• Hearing Impairment
• Mental retardation
• Cerebral palsy
• Leprosy - cured
• Autism
• Loco Motor Disability
• Blindness
• Low vision

Conditions To avail Deduction

• No deduction under this section is allowed if the taxpayer himself is differentially abled.
• Must be a resident of India.
• If the dependent for whom the assessee is claiming deduction under this section has claimed deduction u/s 80U for himself, then the concerned taxpayer cannot claim deduction under this section
• The taxpayer can claim deduction only if he has incurred any expenses towards medical (including nursing), training and rehablitation of the differentially abled dependent or has deposited any amount in scheme of LIC or with any other insurer for maintenance of dependent.
• Diability must be such as defined u/s 2(i) of the Persons of Diabilities Act,1995

Note: Dependent means for an Individual it is spouse, children, parents, brothers and sisters and for HUF it would be members of the HUF.

Docunments Required To claim Deduction under this section

The assessee need to furnish a government issued disability certificate from medical board to claim deduction under this section.

Difference Between 80U and 80DD

Under section 80U, the assessee is liable to claim deduction if he himself suffers from any disability but under section 80DD the assessee can claim deduction if he incures expenses for any dependent who suffers disability.

If the assessee claims deduction u/s 80U, then the person on whom the disable person is dependent cannot claim deduction under this section