Applicable to: Individuals & HUFs
This section provides tax relief for expenses incurred on the care of dependents with disabilities (including mental illness).
Key Features (AY 2025-26)
1. Who Qualifies as a “Dependent”?
- Spouse
- Children(including adopted/stepchildren)
- Parents
- Siblings(if dependent on taxpayer)
2. Disability Criteria
Must have ≥40% disability certified by:
- Medical Authority (Form 10-IA)
- Neurologist/Psychiatrist (for mental disability)
3. Deduction Amounts
| DISABILITY LEVEL | DEDUCTION |
| 40% to 79% disability | ₹75,000 per year |
| 80%+ disability (severe) | ₹1,25,000 per year |
4. Eligible Expenses
✅ Medical treatment
✅ Rehabilitation
✅ Nursing care
✅ Special education/training
✅ Insurance premium for disabled dependent
How to Claim?
- Obtain Disability Certificate(from authorized hospital/medical board)
- Keep Expense Records(bills, prescriptions, insurance proofs)
- File ITR with Form 10-IA
Comparison with Similar Sections
| SECTION | PURPOSE | MAX DEDUCTION |
| 80DD | Disabled dependent care | ₹1,25,000 |
| 80D | Health insurance | ₹1,00,000 |
| 80U | Self-disability | ₹1,25,000 |
Example Cases
- Parent with 60% disability→ ₹75,000 deduction
- Autistic child (severe disability)→ ₹1,25,000 deduction
Pro Tips
- Combine with 80Dfor additional health insurance benefits.
- Lump-sum payments(like wheelchair purchase) qualify if made in the financial year.
- No proof required for exact expenses– Deduction is fixed based on disability level.
