Section 80DD of Income Tax Act "Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability"
80DD. (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:-
(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;
(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.
(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) 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) 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) 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);
(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).