Section 80DD

 Section 80DD is a provision under the Income Tax Act that provides tax deductions to taxpayers who have dependents with disabilities. The deduction is available to both individual taxpayers and HUF (Hindu Undivided Family) taxpayers.

The following are the key highlights of this provision:

1. Eligibility criteria: The taxpayer should have a dependent with a disability. The dependent can be a spouse, children, parents, or siblings.

2. Definition of disability: The disability should be at least 40% or more, as certified by a medical authority. The disabilities covered under this section include blindness, low vision, hearing impairment, locomotor disability, mental retardation, autism, and cerebral palsy.

3. Amount of deduction: A taxpayer can claim a deduction of up to Rs. 75,000 per year in case of disability and up to Rs. 1.25 lakhs per year in case of a severe disability (80% or more).

4. Proof of disability: The taxpayer should submit a certificate from a medical authority specifying the disability of the dependent.

5. Utilization of funds: The funds received as a deduction under this section can be utilized for the maintenance of the dependent with a disability, including medical treatment, training, and rehabilitation.

Overall, Section 80DD provides financial relief to taxpayers with dependents with disabilities, allowing them to reduce their tax liability and provide better care for their loved ones.