Definition
Section 80DD and 80U (Disability Deductions)
Sections 80DD and 80U provide tax deductions for the maintenance and medical care of a person with disability.
Section 80DD allows a deduction to a taxpayer who incurs expenditure on the medical treatment, training and rehabilitation of a dependent with disability, or who deposits into an approved scheme for the dependent's benefit. The deduction is a fixed amount that is higher for severe disability, regardless of actual spend.
Section 80U is similar but applies when the taxpayer themselves has a certified disability, offering a flat deduction (again higher for severe disability). Both require a valid disability certificate from a recognised medical authority.
These are old-regime deductions designed to ease the financial burden of disability. They are distinct from Section 80DDB, which covers expenditure on specified critical illnesses.
Related terms
- Old vs New Tax RegimeIndia offers two personal income-tax regimes: the old one with various deductions and exemptions, and the new one with lower slab rates but most exemptions removed.
- Section 80DDB (Specified Diseases)Section 80DDB allows a deduction for expenses incurred on the treatment of certain specified serious diseases.
- Section 80DSection 80D of the Income-tax Act allows a deduction for health insurance premiums paid for oneself, family and parents, subject to limits.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.