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deduction difference

Priya Kashyap (Student) (7053 Points)

06 April 2019

difference between deduction 80D, 80dd , 80u and 80DDB???

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montee Idaiyar (other) (341 Points)
Replied 07 April 2019

Refer:

https://www.indiantaxupdates.com/sections-80d-80dd-80ddb-80u-medical-based-deductions/

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Priya Kashyap (Student) (7053 Points)
Replied 07 April 2019

kindly can someone mention

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montee Idaiyar (other) (341 Points)
Replied 07 April 2019

Section 80DD

Individual: A dependent family member like child, spouse, parent, sibling
HUF: Any member of HUF

Section 80U

For the taxpayer himself

Basically, these are the disabilities which are considered by Income Tax Act:

Blindness
Low vision
Leprosy-cured
Hearing impairment
Locomotor disability
Mental retardation
Mental illness

Here, there are two terms frequently used for the level of Disability.

The person with Disability means minimum 40% of the disability from given list.
The person with Severe Disability means 80% or more of the given disabilities.

Section 80DD

Under this section, the individual or HUF can claim deductions when their family member is differently abled.

This deduction can be claimed in two conditions:

When the person has done any spendings in the medical treatment, nursing, rehabilitation or training of the differently abled person.
When there are premiums / payments deposited to any scheme formed by LIC, which is for the good of the disabled person.

The deduction must be claimed by a resident Indian only.
In order to claim the deductions, one needs to acquire a certificate from the medical authority and furnish the copy of the same while filing Taxes.

Tax Deduction under Section 80DD

Disabled (minimum 40% of the disability) – Rs. 75,000
Severely Disabled (80% or more of the disability) – Rs. 1,25,000

Section 80U

This Section is only available to the Individual taxpayers. An individual who is differently abled can claim deductions for himself.
The main difference between 80DD and 80U is that in 80U, there are no necessary expenses that avail the taxpayer for deduction.The taxpayer receives the deductions just on the basis of him being differently abled.
The deduction must be claimed by a resident Indian only.
Here too, in order to claim the deductions, one needs to acquire a certificate from the medical authority and furnish the copy of the same while filing Taxes.

Tax Deduction under Section 80U

Disabled (minimum 40% of the disability) – Rs. 75,000
Severely Disabled(80% or more of the disability) – Rs. 1,25,000

Difference between Section 80U and Section 80DD

Section 80DD provides tax deductions to the family members and the kin of the taxpayer with a disability, whereas Section 80U provides deductions to the individual taxpayer with a disability himself. Section 80DD is applicable if a taxpayer deposits a specified amount as an insurance premium for taking care of his/her dependent disabled person. Under section 80DD, the deduction limits are the same as Section 80U. Here, a dependent refers to the siblings of the assessee, parents, spouse, children or a member of a Hindu Unified Family.