Section 80DD - Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability - Income-tax Act, 1961

1 [Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability. 80DD. 7 [ (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,- (a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or (b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of seventy-five thousand rupees from his gross total income in respect of the previous year: Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words seventy-five thousand rupees , the words one hundred and twenty-five thousand rupees had been substituted.] (2) The deduction under clause ( b ) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:- 8 [ (a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability,- (i) 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; or (ii) on attaining the age of sixty years or more by such individual or the member of the Hindu undivided family, and the payment or deposit to such scheme has been discontinued; ] ( b ) the assessee 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. (3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause ( b ) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year. 9 [ (3A) The provisions of sub-section (3) shall not apply to the amount received by the dependant, being a person with disability, before his death, by way of annuity or lump sum by application of the condition referred to in sub-clause (ii) of clause (a) of sub-section (2). ] (4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed: Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income. Explanation. -For the purposes of this section,- ( a ) Administrator means the Administrator as referred to in clause ( a ) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002); ( b ) dependant means- ( i ) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them; ( ii ) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year; ( c ) disability shall have the meaning assigned to it in clause ( i ) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) 2 [ and includes autism , cerebral palsy and multiple disability referred to in clauses ( a ), ( c ) and ( h ) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) ]; ( d ) Life Insurance Corporation shall have the same meaning as in clause ( iii ) of sub-section (8) of section 88; ( e ) medical authority means the medical authority as referred to in clause ( p ) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) 3 [ or such other medical authority as may, by notification, be specified by the Central Government for certifying autism , cerebral palsy , multiple disabilities , person with disability and severe disability referred to in clauses ( a ), ( c ), ( h ), ( j ) and ( o ) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)]; ( f ) person with disability means a person as referred to in clause ( t ) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) 4 [ or clause ( j ) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) ]; 5 [ ( g ) person with severe disability means- ( i ) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or ( ii ) a person with severe disability referred to in clause ( o ) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); ] ( h ) specified company means a company as referred to in clause ( h ) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002). ] ---------------------------------- Notes :- 1 . Substituted by the Finance Act, 2003, w.e.f. 1-4-2004. Prior to its substitution, section 80DD was substituted for sections 80DD and 80DDA by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Earlier section 80DD was inserted by the Finance Act, 1990, w.e.f. 1-4-1991 and thereafter amended by the Finance Act, 1992, w.e.f. 1-4-1993 and Finance Act, 1993, w.e.f. 1-4-1994. Section 80DDA was inserted by the Finance Act, 1995, w.e.f. 1-4-1996. Prior to its substitution by the Finance Act, 2003, section 80DD, as amended by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999, Finance Act, 1999, w.e.f. 1-4-2000 and Finance Act, 2001, w.e.f. 1-4-2002, read as under : ' 80DD. Deduction in respect of maintenance including medical treatment of handicapped dependent -(1) Where an assessee, who is a resident in India, being an individual or a Hindu undivided family has, during the previous year,- (a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a handicapped dependant; or (b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or Unit Trust of India subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of handicapped dependant, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of forty thousand rupees in respect of the previous year. (2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely :- (a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a handicapped dependant 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) the assessee nominates either the handicapped dependant or any other person or a trust to receive the payment on his behalf, for the benefit of the handicapped dependant. (3) If the handicapped dependant predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year. (4) In this section,- (a) Government hospital includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants; (b) handicapped dependant means a person who- (i) is a relative of the individual or, as the case may be, is a member of the Hindu undivided family and is not dependant on any person other than such individual or Hindu undivided family for his support or maintenance; and (ii) is suffering from a permanent physical disability (including blindness) or is subject to mental retardation, being a permanent physical disability or mental retardation specified in the rules made by the Board for the purposes of this section, which is certified by a physician, a surgeon, an oculist or a psychiatrist, as the case may be, working in a Government hospital, and which has the effect of reducing considerably such person's capacity for normal work or engaging in a gainful employment or occupation; (c) Life Insurance Corporation shall have the same meaning as in clause (iii) of sub-section (8) of section 88; (d) Unit Trust of India means the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963).' 2. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 3. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 4. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 5. Substituted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. Prior to its substitution, clause (g) read as under : '(g) person with severe disability means a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996);' 6. Substituted vide Finance (No. 2) Act, 2009, w.e.f. 1-4-2010, before it was read as, seventy-five thousand rupees 7. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,- ( a ) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or ( b ) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year: Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words fifty thousand rupees , the words 6 [ one hundred thousand rupees ] had been substituted. 8. Substituted vide Finance Act, 2022 w.e.f. 01-04-2023 before it was read as ( a ) the scheme referred to in clause ( b ) of sub-section (1) 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; 9. Inserted vide Finance Act, 2022 w.e.f. 01-04-2023