80DD Calculator - Disability Deductions Made Simple

What is Section 80DD in Income Tax?

Section 80DD of the Income Tax Act of India offers deductions to Indian residents and Hindu Undivided Families (HUFs) who incur expenses on the medical treatment or care of a dependent with disability. This section provides financial relief to taxpayers who bear the burden of medical costs for their differently-abled family members.

Section 80DD Deductions Eligibility

To be eligible for the Section 80DD deduction, certain conditions must be met:

1. Resident Individual or HUF: The taxpayer must be a resident individual or Hindu Undivided Family in India. Non-residents are not eligible for this deduction. 

2. Dependent with Disability: The deduction is applicable if you are caring for a dependent family member who has a disability. The dependent can be:   

• Spouse
• Parents
• Children
• Siblings for an HUF, any family member can be a dependent.

3. Disability Level: The dependent must have a minimum of 40% disability certified by a medical authority. 

4. No Double Deduction: You can’t claim this deduction if the dependent with a disability has already claimed a similar deduction under any other section. 

80DD Deduction Limits

There are two levels of deductions you can claim under Section 80DD

• For dependents with 40% and 79% disability, the deduction is Rs. 75,000.
• For dependents with severe disability (80% and above), the deduction is Rs. 1,25,000. 

What expenses are covered?

Following are the eligible expenses for deduction under Section 80DD:

• Medical treatment expenses including hospitalization, medicines, and surgeries.
• Training and rehabilitation expenses such as physiotherapy, occupational therapy and special education.
• Expenses incurred on specialized equipment and assistive devices for the disabled dependent.

Benefits of Section 80DD Deduction

Section 80DD of the Income Tax Act provides several benefits to taxpayers who care for dependents with disabilities: 

1. You can claim a tax deduction for expenses incurred on the care of a disabled dependent.
2. Section 80DD offers much-needed financial relief to taxpayers facing these challenges. 
3. This tax deduction encourages taxpayers to provide the best possible care to their disabled dependents without financial strain.

Documents Required to Claim Deductions

Following are the necessary documents you need to submit to claim tax deductions for caregiving expenses:

Disability Certificate

A valid disability certificate issued by a recognized medical authority is mandatory. This certificate must clearly specify the nature and extent of the disability. 

Supporting Documents

• Medical bills, receipts and invoices for all eligible expenses. 
• Proof of payment for training and rehabilitation programs.
• Receipts for the purchase of assistive devices.

How Chartered ONE’s 80DD Calculator Helps

Chartered ONE’s 80DD Calculator makes it easy to figure out how much tax deduction you can claim under Section 80DD. Here’s how it helps:

• Quick Calculation: Just enter the basic details like the financial year, status, and percentage of disability. The calculator will quickly show you the tax deduction you are eligible for.
• User-friendly: You don’t need to be a tax expert. The calculator is simple and easy to use, so anyone can use it with ease.
• Accurate Results: You will get the correct deduction whether the disability is regular (40%+) or severe (80%+).
• Saves Time: Instead of manually figuring out your deductions, this calculator gives you the information in seconds. This makes tax planning much faster!

Section 80DD offers financial relief to those taking care of disabled persons. Before filing your taxes, calculate the deductions you are entitled to under this section using our 80DD calculator. It only takes a few minutes to find out the deductions you are entitled to under this section!