Section 80DD

 Section 80DD of the Income Tax Act, 1961, provides provisions for deductions available to resident individuals or Hindu Undivided Families (HUFs) who have incurred expenses for the medical treatment, training, and rehabilitation of a dependent with a disability. Here's a breakdown of the deductions available under Section 80DD:

Deduction Amount: The deduction amount available under Section 80DD depends on the severity of the disability:

If the dependent has a disability that is at least 40% but less than 80%, the taxpayer can claim a fixed deduction of ₹75,000 per annum.

If the dependent has a disability that is 80% or more, the taxpayer can claim a higher fixed deduction of ₹1,25,000 per annum.

Eligibility Criteria for the Dependent: The dependent for whom the deduction is being claimed must fulfill the following criteria:

He or she should be a spouse, children, parents, brothers, or sisters of the individual taxpayer.

In the case of a Hindu Undivided Family (HUF), the dependent can be any member of the HUF.

Disability Certificate: To claim the deduction under Section 80DD, the taxpayer must obtain a disability certificate issued by a medical authority. This certificate should specify the extent of the disability.

Expenses Covered: The deduction can be claimed for expenses incurred towards medical treatment, nursing, training, and rehabilitation of the dependent with a disability. This includes expenses for medical insurance, maintenance, and medical treatment.

Mode of Payment: The payment for such expenses can be made through any mode, including cash, cheque, or online transfers.

No Double Deduction: If the taxpayer has also taken an insurance policy for the maintenance of the dependent with a disability under Section 80DDB, the amount claimed under Section 80DD will be reduced by the amount received as insurance payment.

It's important to keep proper documentation of all expenses incurred for the medical treatment and rehabilitation of the dependent with a disability, as well as maintain records of the disability certificate and other relevant documents. These documents will be required during tax filing to claim deductions under Section 80DD. Additionally, taxpayers should ensure compliance with the terms and conditions specified under this section of the Income Tax Act.