Section 80DD Deduction for Maintenance and Medical Treatment of a Dependant with Disability
The deduction historically known as Section 80DD provides tax relief to a resident individual or Hindu undivided family for specified expenditure or qualifying payments made for a dependant with disability. From 1 April 2026, the corresponding provision is Section 127 of the Income-tax Act, 2025.
What is the deduction for a dependant with disability?
Section 127 of the Income-tax Act, 2025 allows a deduction to a resident individual or resident Hindu undivided family where, during the tax year, the taxpayer either incurs expenditure on the medical treatment, including nursing, training and rehabilitation of a dependant who is a person with disability, or pays or deposits an amount under an approved qualifying scheme for that dependant.
The relief is a specified deduction and is not limited to reimbursement of the exact amount of ordinary treatment expenditure. The applicable statutory amount depends on whether the dependant is a person with disability or a person with severe disability.
How much deduction is available?
| Category | Deduction |
|---|---|
| Dependant who is a person with disability | Rs. 75,000 |
| Dependant who is a person with severe disability | Rs. 1,25,000 |
Severe disability generally refers to disability of 80 per cent or more under the applicable statutory framework. The prescribed medical certification requirements must also be satisfied.
Who is treated as a dependant?
For an individual, a dependant can include the spouse, children, parents, brothers or sisters who are wholly or mainly dependent on the individual for support and maintenance. For a Hindu undivided family, the dependant can be a member of the HUF who is wholly or mainly dependent on the HUF for support and maintenance.
A dependant covered by this deduction cannot simultaneously claim the corresponding deduction available to a person with disability in his or her own computation of income. Under the Income-tax Act, 2025, that corresponding self-disability deduction is contained in Section 154.
What expenditure or payment qualifies?
The provision covers two broad routes. First, the taxpayer may incur expenditure for medical treatment, including nursing, training and rehabilitation of the dependant. Second, the taxpayer may pay or deposit money under a qualifying scheme framed by the Life Insurance Corporation, another insurer, the Administrator or the specified company, where the statutory conditions are met.
Disability certificate and Form 30
A taxpayer claiming the deduction must comply with the prescribed disability certification requirements. Under the Income-tax Rules, 2026, Form 30 is the corresponding form for certification for purposes of Sections 127 and 154. It replaces the earlier Form 10-IA framework under the Income-tax Rules, 1962 for the corresponding provisions.
If the certificate specifies that the extent of disability requires reassessment after a stated period, a fresh valid certificate is required for a later tax year once the earlier certificate ceases to cover the relevant period.
Conditions for an approved insurance or maintenance scheme
Where the deduction is claimed for payment or deposit under a qualifying scheme, the scheme must satisfy the conditions laid down in Section 127. It may provide for payment of an annuity or lump sum for the benefit of the dependant on the death of the subscriber. The current law also accommodates the prescribed circumstance where the subscriber has attained the age of 60 years or more and payments or deposits to the scheme have been discontinued.
The taxpayer must nominate the dependant, another person, or a trust to receive the amount on behalf of and for the benefit of the dependant. If the dependant dies before the taxpayer in circumstances covered by the provision, the amount received back by the taxpayer may become taxable in the relevant tax year.
Old Section 80DD of the Income-tax Act, 1961
Before 1 April 2026, Section 80DD of the Income-tax Act, 1961 governed this deduction. It applied to a resident individual or HUF that incurred qualifying expenditure for a dependant with disability or made qualifying payments under an approved maintenance scheme.
The deduction under the old provision was Rs. 75,000, increased to Rs. 1,25,000 for a dependant with severe disability. The old provision also contained certificate requirements and definitions dealing with "dependant", "disability", "medical authority", "person with disability" and "person with severe disability".
For returns, assessments, appeals or other matters governed by the earlier law, the relevant provisions of the Income-tax Act, 1961 and the applicable transition and savings provisions should be checked.
Section 80DD and Section 80U: basic distinction under the old law
Section 80DD was a deduction claimed by an eligible resident individual or HUF for a qualifying dependant with disability. Section 80U, by contrast, was claimed by a resident individual for his or her own disability. Under the Income-tax Act, 2025, the corresponding provisions are Sections 127 and 154 respectively.
Official resources
This article is intended as a general legal and tax information guide. The applicable Act, Rules, forms, notifications and facts of the taxpayer should be checked before making a claim.