Deduction under section 80DD

Section 80DD- Maintenance & medical treatment of dependent person:-

If any taxpayer spends an amount for the medical treatment of a person dependent on him, then such taxpayer can claim the deduction while filing his Income-tax return.

Here, expenses for medical treatment as well as maintenance of the dependent person are also covered in addition to treatment.

Irrespective of the actual amount of medical treatment or maintenance cost, the taxpayer can claim the deduction of Rs. 75,000/- in case of normal disability; and Rs. 1,25,000/- in case of severe disability.

[Note- To claim the deduction, a taxpayer should receive from medical practitioner a certificate showing the nature and percentage of disability.]

What is the Difference between Sections 80U and 80DD?   

Section 80U provides tax deductions to persons of disability while Section 80DD provides deductions to the family members of a disabled person. Section 80DD is also applicable if the person has deposited some amount as insurance premium for caring for a dependent disabled person. The deduction limits are same as Section 80U. Dependent implies any member of a Hindu Unified Family (HUF) or an individual’s siblings, parents, spouse or children.