Section 80DD and 80DDB

What is Section 80DD?

80DD is section of Income Tax Act in which individual can claim expenditure of medical treatment, training or rehabilitation of a disabled dependent, including amount spent for nursing for handicapped dependents. Also individual can claim the insurance premium paid for the maintenance of disabled dependents in case of untimely death of individual. Dependents can be spouse, children, parents, siblings. Dependents must not have claimed any deduction for their disability medical expenditure under any section.

Disability means a person suffering from 40% or more of any of the below disabilities. A severe disability condition is  80% or more of the disabilities:

• Blindness and Vision problems
• Leprosy-cured
• Hearing impairment
• Locomotor disability
• Mental retardation or illness

Limit of Section 80DD:

Current limit of section 80DD is 50,000/- for above disability. In case of severe disability limit is 1,00,000/-. Individual can take benefit of actual expenditure or limit which ever is less.

What is Section 80DDB?

80DDB is section of Income Tax Act in which individual can claim medical expenditure of following specified illness of self or dependents. Dependents can be spouse, children, parents, siblings. Individual can not claim if they are already receiving reimbursement from insurance company, employer.

• Neurological Diseases (where the disability level has been certified as 40% or more).
• Parkinson’s Disease
• Malignant Cancers
• Acquired Immune Deficiency Syndrome (AIDS)
• Chronic Renal failure
• Hemophilia
• Thalassaemia

Limit of Section 80DDB:

Current limit of section 80DDB is 40,000/- for individual whose age below 65. For senior citizen its 60,000/-.