Section 80DD of ITA, 1961 : Section 80Dd: Deduction In Respect Of Maintenance Including Medical Treatment Of A Dependant Who Is A Person With Disability

Explanation using Example

Imagine Mr. Sharma, who is a resident of India and falls under the individual taxpayer category. His son has a severe disability, and Mr. Sharma has spent ₹150,000 on his son's medical treatment and rehabilitation during the financial year. He has also invested ₹50,000 in an approved insurance scheme for the future maintenance of his son.

Under Section 80DD of the Income-tax Act, 1961, Mr. Sharma is eligible to claim a deduction from his gross total income. Since his son has a severe disability, he can claim a deduction of ₹125,000 (as the provision allows a higher deduction for severe disability).

When filing his income tax return, Mr. Sharma needs to furnish a copy of the disability certificate issued by a competent medical authority, confirming his son's severe disability status.

If Mr. Sharma's son sadly passes away before him, and Mr. Sharma receives the amount from the insurance scheme, that amount will be taxable in the year he receives it.

This deduction under Section 80DD helps reduce Mr. Sharma's taxable income, thereby lowering his tax liability, while also providing some financial relief for the expenses incurred due to his son's disability.