Section 80DD is introduced to providethe tax benefits to the caretakers of disabled dependents. The disabilities covered under the act include blindness, low vision, leprosy-cured, loco motor disability, hearing impairment and mental retardation.
Any individual or HUF can claimed the benefits of section 80DD. Section 80DD can allow the deduction to only families of disabled dependents the same is not eligible for the disabled themselves. There is different section for claiming deduction for self which is section 80U.
Any person claiming deduction of any amount in section 80U cannot be claimed the same amount again in section 80DD. Section 80DD is applicable on all the expenses incurred to caring the disabled dependent. The expenses include the insurance premium also which is paid for the purpose of maintenance of disabled dependent.
To availed such deduction individual is required to submit the medical certificate authenticating the disability of dependent issued by the state or central government medical board.
The amount of deduction to any person is allowed on the basis of percentage of disability of a disable dependent i: e if the percentage is 40% or more of one more disability the deduction is allowed up to Rs 75000/-
The amount of deduction allowed will be 1, 25,000/- if the person is 80% or more of one or more disabled.
The above deduction limits have been increased from assessment year 2015-16 and Earlier it was 50000/- and 100000/- respectively.
The deduction is allowed only to the individual who have a disabled dependent including parent, spouse, siblings, or children or an HUF with a disabled family member can claim deduction under section 80DD. The section is not eligible for the NRI.