80DD AND 80U : Income Tax Benefits for Persons with Disability - enabled.in

80DD AND 80U : Income Tax Benefits for Persons with Disability

Section 80DD and 80U are the two segments of the same purpose: To avail Tax Deductions for the differently abled people.

Section 80DD and 80U for persons with disability

Section 80DD

  1. Individual: A dependent family member like child, spouse, parent, sibling
  2. HUF: Any member of HUF

Section 80U

  1. For the taxpayer himself

Basically, these are the disabilities which are considered by Income Tax Act:

  1. Blindness
  2. Low vision
  3. Leprosy-cured
  4. Hearing impairment
  5. Locomotor disability
  6. Mental retardation
  7. Mental illness

Here, there are two terms frequently used for the level of Disability.

  1. The person with Disability means minimum 40% of the disability from given list.
  2. The person with Severe Disability means 80% or more of the given disabilities.

Section 80DD

Under this section, the individual or HUF can claim deductions when their family member is differently abled.

This deduction can be claimed in two conditions:

  • When the person has done any spendings in the medical treatment, nursing, rehabilitation or training of the differently abled person.
  • When there are premiums / payments deposited to any scheme formed by LIC, which is for the good of the disabled person.

The deduction must be claimed by a resident Indian only.
In order to claim the deductions, one needs to acquire a certificate from the medical authority and furnish the copy of the same while filing Taxes.

Tax Deduction under Section 80DD

Disabled (minimum 40% of the disability) –  Rs. 75,000
Severely Disabled (80% or more of the disability) – Rs. 1,25,000

Section 80U

  1. This Section is only available to the Individual taxpayers. An individual who is differently abled can claim deductions for himself.
  2. The main difference between 80DD and 80U is that in 80U, there are no necessary expenses that avail the taxpayer for deduction.The taxpayer receives the deductions just on the basis of him being differently abled.
  3. The deduction must be claimed by a resident Indian only.
  4. Here too, in order to claim the deductions, one needs to acquire a certificate from the medical authority and furnish the copy of the same while filing Taxes.

Tax Deduction under Section 80U

Disabled (minimum 40% of the disability) – Rs. 75,000
Severely Disabled(80% or more of the disability) – Rs. 1,25,000

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

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  1. Sir,
    a salaried person is disabled with 40% disability and his daughter is also disabled with 50% disability. Can he claim tax exemption both under 80U and 80DD?
    Sincerely

    sreejith

  2. I HAD DISABILITY 45% AND FILL RETURN IN 2019JULY , SHOULD I REVISED MY RETURN AND ALSO SHARE PERIOD FOR RETURN SUBMISSION

  3. If an employee have two son 50%Disability how much income tax rebate given to the employee

  4. My son is having severe hearing disability and can I deposit 10 lakhs in his name and is it taxable ?

  5. Can aperson with mental ilness take rebate on the money spent for salary of a care giver engaged for him .and how much amount can be deducted .

  6. I am government servant with 50% disabilities please inform me concessions in income tax.

  7. Iam govt servet 80%disability. And my wife40% disabilitybut his house wife donot any job or buisness.
    Total amount. Of benefits in tax. Please give me a ans.
    Thanku.)

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