Section 80DD vs Section 80U: Key Differences
The Income Tax Act provides robust tax deductions to alleviate the financial burden of disability, divided into two distinct sections:
- Section 80DD (Section 127 of Income-tax Act 2025): Claimed by an individual taxpayer who incurs medical expenditures, nursing, training, rehabilitation, or deposits into insurance schemes for a dependent family member with a disability (spouse, children, parents, or siblings).
- Section 80U (Section 154 of Income-tax Act 2025): Claimed directly by an individual taxpayer who is personally certified as a person with a disability.
Statutory Flat Deduction Amounts
Under both Section 80DD and Section 80U, the deduction is a fixed statutory sum that does not require submission of actual medical expense bills:
| Severity Category | Certified Disability Percentage | Fixed Annual Tax Deduction |
|---|---|---|
| Normal Disability | 40% to 79% disability | ₹75,000 flat |
| Severe Disability | 80% or higher disability / multiple disabilities | ₹1,25,000 flat |
Rule against Double Deduction
If an individual with a disability claims deduction under Section 80U in their own tax return, their family member (parent or spouse) cannot claim deduction under Section 80DD for the same person in the same financial year.
Frequently Asked Questions (FAQs)
1. Is a UDID card accepted as proof for claiming 80DD/80U?
Yes. The Unique Disability ID (UDID) card issued by the Ministry of Social Justice and Empowerment or Form 10-IA signed by a government medical authority serves as valid statutory proof.
2. Can an NRI claim deduction under Section 80DD or 80U?
No. Both Section 80DD and Section 80U are strictly available only to resident individuals in India.
Statutory Authority: Sections 80DD & 80U, Income Tax Act, 1961 / Sections 127 & 154, Income-tax Act, 2025.