Monday, March 18, 2013

80DD DEDUCTION ALLOWABLE IN FULL EVEN IF EXP INCURRED ON MEDICAL TREATMENT IS LESS


on Monday, March 18, 2013

Under section 80DD a deduction of Rs 50000/100000 is allowed for medical treatment of dependant relaive is allowed. But do you know that this a statutory deduction .Means you can avail full deduction even you have incurred less expenses on medical treatment of dependant .

Example: Raman has incuured 12000 Rs on medical treatment of his handicapped Son(disability  less than 80 but up to and mmore than 40 %) in Fy 2012-13.How much deduction is available to him u/s 80DD

Answer: Rs 50000/- deduction is available to Raman even expenses incurred is less than Rs 50000/-

Two relevant circular has been reproduced here under for your your ready reference .

Whether, as long as conditions mentioned in section 80DD are ful­filled and assessee has incurred any expenditure on medical treatment, etc., of handicapped person, deduction as envisaged in section 80DD will be allowable in full ?

1. Under the provisions of section 80DD of the Income-tax Act, 1961, an assessee who is resident in India being an individual or a Hindu undivided family is allowed a deduction of Rs. 15,000(In Fy 2012-13 and  2012-13 deduction is 50000 and for severe disability 100000) for expenditure incurred in respect of handicapped dependants subject to the following conditions :—

(i) the handicapped dependant is a relative of the assessee and is not dependant on any person other than the assessee for his support or maintenance;

(ii) he is suffering from a permanent physical disability (including blindness) or mental retardation and the same is certified by a Physician, Psychiatrist, etc., working in Govern­ment hospital;

(iii) the disability has the effect of reducing consid­erably such person’s capacity for normal work or engaging in a gainful employment or occupation;

(iv) the assessee has incurred any expenditure for medical treatment (including nursing), training and rehabilitation of the handicapped dependant.

2. The Board has received several representations seeking clari­fication regarding the quantum of deduction available in relation to the expenditure incurred on the handicapped dependants.

3. It is hereby clarified that the deduction under section 80DD of the Income-tax Act, 1961 is statutory in nature. Therefore, as long as the conditions mentioned in the section are fulfilled, and the assessee has incurred any expenditure on medical treat­ment, etc., of the handicapped person, the deduction as envisaged in the section will be allowable in full.

Circular : No. 702, dated 3-4-1995.


Whether it would be sufficient if the employee furnishes a medical certificate from a Government Hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handicapped dependant and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI ?


1. Section 80DD, substituted for sections 80DD and 80DDA by the Finance (No. 2) Act, 1998, lays down that the deduction on ac­count of expenditure incurred by way of medical treatment (in­cluding nursing), training and rehabilitation of a handicapped dependant or amount paid or deposited in specified schemes of Life Insurance Corporation or Unit Trust of India for the mainte­nance of handicapped dependant, shall be limited to Rs. 40,000 in the aggregate while computing the total income of the parent or the guardian of such handicapped dependant.

2. It has come to the notice of the Board that some of the DDOs are asking the employees to submit medical vouchers/bills in connection with the expenses incurred on the medical treatment of their handicapped dependant apart from a certificate from the Government hospital regarding the permanent physical disability or mental retardation of the handicapped dependant.

3. It is clarified that it would be sufficient if the employee furnishes a medical certificate from a Government hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handi­capped dependant and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI. Therefore, DDOs may not insist upon production of vouchers/bills by the employees for having incurred expenditure on medical treatment of their handicapped dependants for allowing the deduction under section 80DD for the purpose of computing tax deductible at source.

4. This clarification is applicable for the purpose of Tax Deduc­tion at Source from salaries under section 192 of Income-tax Act, 1961 during the Financial year 1998-99 and onwards.

Circular : No. 775, dated 26-3-1999.

Read more about section 80DD deduction for dependant handicapped relative

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  1. we love simple tax India

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  2. I am claiming under section 80U as self disability. Can I claim for my blind sister under section 80dd?? some where I came to know that if i claimed under 80U then i cann't claim under 80DD.Pls suggest what to do???

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  3. The condition is not like as have been told you.The consition is that if you calim 80DD for you sister , then she can not claim 80U in her return or vice versa..

    Further she must be dependent on you.

    So in our opnion in present case you can claim 80U and 80DD both both if you sisiter has not claimed the 80U deduction & dependend on you.

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  4. Dear Sir/Can I claim under section 80DD for my cousin sister(Father's sister's daughter)they are farmers and completely dependent upon me.My father is also dependent upon me.If yes then please send me the govt rule for this as the HR is asking for the same. regards/

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