26 May 2020
U/s 80DD, a resident individual or an HUF having a dependent relative/member suffering from a permanent physical disability (including blindness) or mental retardation, is entitled to a deduction for medical treatment, training or rehabilitation of the dependent.
The disability is classified into two parts as defined under the Persons with Disability (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1996.
Disability over 40% is non-severe and that over 80% is severe. The deduction allowed will be Rs 50,000 for non-severe and Rs 75,000 for severe disability.
Deduction u/s 80DD is statutory in nature and is allowed in full, irrespective of the actual expenditure incurred on medical treatment. This deduction can be claimed by you if the wife is dependent
on you.
U/s 80U, a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, shall be allowed a deduction of Rs 50,000.
If the disability is severe in nature the deduction would be higher at Rs 75,000. This deduction can be claimed, irrespective of the expenditure on the treatment or the duration of the disability. This deduction can be claimed by her if she has an income of her own.
If she claims the deduction u/s 80U, can you claim that she is dependent upon you and claim the deduction u/s 80DD
The answer is in the negative. 'Dependent' includes the spouse, children, parents, brothers and sisters, and in the case of a HUF, a member thereof, who is wholly or mainly dependent on the assessee and has not claimed any deduction u/s 80U in the computation of his income.
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