Section 80DD
Deduction in Respect of Maintainance Including Medical Treatment of Dependent Disabled

Section 80DD provides deduction to an assessee, who is a resident in India, being an individual or Hindu undivided family. incurred for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with a disability, or paid or deposited under a scheme framed on this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the Specified Company as referred to in section 2(h) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, for the maintenance of a dependant, being a person with a disability qualifies for the deduction.

The quantum of deduction is Rs. 75,000 and in case of severe disability (i.e. person with 80 % or more disability) the deduction shall be Rs. 125,000.

The scheme should provide for payment of annuity or a lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or member of the HUF, in whose name subscription was made and the assessee must nominate 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.

The benefit of deduction under this section is also available to assessees incurring expenditure on maintenance including medical treatment of persons suffering from autism, cerebral palsy and multiple disabilities

Conditions

1. For claiming the deduction, the assessee shall have to furnish a copy of the certificate issued by the medical authority under the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 along with the return of income under section 139.
   
   
2. Where the condition of disability requires reassessment, a fresh certificate from the medical authority shall have to be obtained after the expiry of the period mentioned in the  original certificate in order to continue to claim the deduction.
   
   
3. If the dependant, being a person with disability, predeceases the individual or the member of HUF, in whose name subscription was made, then the amount paid or deposited under the said scheme would be chargeable to tax in the hands of the assessee in the previous year in which such amount is received by the assessee.

Meaning of "Dependant"