Save income tax using section 80DD and 80U

| | posted on:Disability Insurance, Resources

In India we have two corresponding sections under the Income Tax Act, 1961 which allows fixed deduction irrespective of expenses to the care taker or to the Save income tax using section 80DD and 80Uassessee itself for the disability. Here we have a brief summary for the both Sec.

Save income tax using section 80DD and 80U provision under section 80DD – Every Indian Resident allowed deduction in respect of maintenance including medical treatment of a handicapped dependent who is a person with disability. The assessee must have incurred the expenses for the medical treatment, training & rehabilitation of a dependent (with disability) OR must have deposited the amount to LIC OR any other insurer for the maintenance of dependent(with disability).

Dependent person means spouse, Children, parents, brothers and sisters of individual and for HUF its members.

Deduction shall be allowed of Rs.75,000 per annum whenever the condition stated above is satisfied. A higher deduction of Rs.1,25,000 is allowed where such dependent person is a person with severe disability having any disability of 80 per cent or more.

For Sec 80U – Every Person with disability is allowed a deduction in respect of his disability. The assessee shall get the deduction of Rs.75,000 if he is suffering from the following disability.

• Blindness
• Low Vision
• Leprosy-cured
• Hearing impairment
• Locomotors disability
• Mental retardation
• Mental illness.

He is also entitled to get the deduction of Rs.1,25,000 if he/she is suffering form severe disability(80% and above) and Rs. 75,000 if he/she is suffering from disability  less than 80 greater than 40%.

Some basic difference between two Sec.
Sec 80DD – Deduction is allowed to the Care taker of the dependent disable person.
Sec 80U – Deduction is allowed to the assessee himself.
Sec 80DD – Either he has to make some medical expenses on the disable or deposit the amount for the disable to the Insurance Co.
Sec 80U – Being disability is the only condition.

Assessee can take the benefit of either of the two sec which ever is more beneficial to him but once the assessee has taken the benefits under Sec 80DD for the disability of the person than the another assessee who is self suffering from the disability cant take the benefit for the same under Sec 80U.

80DD and 80U Form Download : PDF Version

Further More Details : http://enabled.in/wp/tag/tax/

Download – FINANCE BILL, 2015, PROVISIONS RELATING TO DIRECT TAXES (160KB, PDF)

18 thoughts on “Save income tax using section 80DD and 80U”

  1. Dear Sir
    My elder brother is 40% disable and dependent on me. Can i avail tax benefit on his behalf.

  2. hii sir
    i m public sector bank employee. i m 40% physically challenged. as per the rule under section 80 u 50000 deduction allowed. but i m confuses because for claiming this whether i should present medical or other expenditure? plz help sir

    1. Dear Ramesh Chandekar,
      The amount deductible is a fixed deduction of Rs. 50,000 whenever the conditions specified above are satisfied, irrespective of the amount incurred or deposited.

      A higher deduction of Rs. 1,00,000 shall be allowed, where such dependent is a person with severe disability having any disability of 80% or above.

      Under the option of depositing or paying under any scheme framed in this behalf by the life Insurance Corporation, Insurance policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death.

      Sec 80DD – Deduction is allowed to the Care taker of the dependent disable person.
      Sec 80U – Deduction is allowed to the assessee himself.
      Sec 80DD – Either he has to make some medical expenses on the disable or deposit the amount for the disable to the Insurance Co.
      Sec 80U – Being disability is the only condition.

      Further More Details :
      Save income tax using section 80DD and 80U
      http://enabled.in/wp/tag/tax/

      Best Regards
      http://www.enabled.in Admin

  3. sir! my mother is 87years old and she has low vision. she is fully depending on me.And I am 50 percentage permanent physically handicapped .How much benefit will get me under section 80dd & 80u.

  4. Its good that such deductions are provided for disability but it would have been better if instead of 2 different sections, we would have had 1 section completely dedicated to medical disability…

  5. Sir,I am 70percent handicaapped person,my wife is also 75percent permanent handicaped person.my wife is non salaried person,she is housewife only.but I am state govt.employee.how much benifit will get me u/s 80DD and 80U

    1. Lakshmi
      Both my children are mentally challenged with 75% disability. My son has epilepsy. What is the amount of deduction allowed and in which category. Kindly reply

  6. sir i am a cemtral govt employee having a physically handicapped of 55%

    how much benefit will get me under sec 80 U and 80DD

  7. Sir i am a central Govt. employee i get medical facilities through railway but i don’t take that medical facilities. i have a 5 month’s doughter she have a hole in heart from born time. i m veting in private hospital so can i get deduction on it bace of what ever i m spending on her treatment under section 80DD

  8. My father is 100% physical handicap person and fully dependent on me. How much amount tax exempted for this with my yearly tax calculation.

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