Eligible Assesse – Resident individual or resident HUF (may be ordinarily resident or not ordinarily resident)
Deduction is available in respect of –
- Expenditure incurred for medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability.
- Amount paid or deposited under any scheme of Life Insurance Corporation or any other insurer or administrator or specified company of Unit Trust of India, approved by CBDT for maintenance of a dependant, being a person with disability subject to Note 1
If the handicapped dependant himself takes deduction under section 80U, then deduction under section 80DD is not available to such individual or HUF.
Amount of Deduction upto financial year 2014-15
The amount of deduction under this section is fixed, irrespective of the amount of expenditure or the amount paid/deposited
- Disability of less than 80% but not less than 40% – Fixed deduction of Rs. 50,000
- Disability of 80% or more – Fixed deduction of Rs. 1,00,000
Amount of deduction from financial year 2015-16
The amount of deduction under this section is fixed, irrespective of the amount of expenditure or the amount paid/deposited
- Disability of less than 80% but not less than 40% – Fixed deduction of Rs. 75,000
- Disability of 80% or more – Fixed deduction of Rs. 1,25,000
Dependant
In case of an individual – Spouse, children, parents, brothers and sisters of individual
In case of HUF – Any member of HUF
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance.
Note – 1
The deduction shall be allowed only if the following conditions are fulfilled:—
(a) the scheme provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made
(b) theassessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.
If such dependent dies before such individual or member of HUF, then the amount paid or deposited under the scheme shall be deemed to be the income of recipient in year of receipt.
Certificate – A certificate issued by the medical authority is required for claiming deduction under this section. If the disability requires reassessment, then a fresh certificate has to be obtained.
In present day scenario, such certificate is not required to furnish with return of income, but to be submitted to Assessing officer only if demanded by him.
(I) “disability” means——
(I) blindness;
(ii) low vision;
(iii) leprosy-cured;
(iv) hearing impairment;
(v) locomotor disability;
(vi) mental retardation;
(vii) mental illness;
