FAQ on Medical Treatment of Handicapped Dependent – Section 80DD of Income Tax Act, 1961

I am a salaried person living in Bangalore. During the financial year I have incurred medical expenses of Rs. 10,800 for the medical treatment of my only handicapped dependent son (disability of low vision). Is there any income tax benefit available for such expenditure?

Medical expenses for handicapped dependent children are allowed as income tax deduction under section 80DD of IT Act. As your son’s disability is specified for claiming the deduction you are eligible for income tax deduction from your taxable income.

You can claim up to Rs. 50, 000 as income tax deduction if your son’s disability is in the range of more than 40 % and less than 80%.

You can claim up to Rs. 1, 00,000 as income tax deduction under section 80DD if the disability is more than 80%.

The above deduction has not link with your expenses incurred. You can claim this much as income tax deduction even though your actual expenses are less than that.  

What is disability under section 80DD of IT Act, 1961?

A person with disability means if such person is suffering from not less than 40% of any disability given below;

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

If the person is suffering above disability of 80% or above then a higher deduction is applicable for income tax.

I have incurred medical expenses for my handicapped dependent grand father. Can I claim deduction under section 80DD of IT act, 1961?

No, section 80DD is applicable if you have incurred medical expenditure of your handicapped dependent spouse, children, parents, brother and sister. Benefits under this section are not applicable to you for your spending on dependent grand father.

Who are eligible for deduction under section 80DD of income tax act for Medical expenses on dependent?

Any salaried employee or a self employed person or any other individual incurring medical expenses for there handicapped dependent spouse, children, parents, brother and sisters.

In the case of a Hindu undivided family (HUF) dependent means any member of such family.

The dependent person should be wholly dependent on the taxpayer who is availing the income tax benefit under section 80DD.

The dependent person should have physical disability as specified under section 80DD of IT act.