What is the Income Tax Deduction available under Income Tax Act to a Person who has a dependent with Autism?
Income Tax Act provides benefit under section 80DD, in the form a deduction from Taxable Income, to an Individual/HUF who has a dependent with Disability including Autism.
Who can claim deduction under Section 80DD?
Deduction can be claimed by a Resident Individual/HUF
- Who has incurred any expenditure for medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability (autism etc) or
- has paid or deposited any amount towards an approved scheme (i.e. insurance policy etc) for the maintenance of a disabled dependent.
What is the amount of deduction available under section 80DD?
Amount of deduction allowed u/s 80DD depends on the level of disability of dependent.
| Disability | Level of disability | Amount (Rs) |
| Normal | 40% or above | 75,000 |
| Severe | 80% or above | 125,000 |
| This deduction cannot be claimed if disabled dependent has claimed deduction under Sec 80U. |
Can a Non Resident person claim this deduction?
No. A non-resident (NRI, OCI, etc) cannot claim deduction under Section 80DD.
What is the nature of Scheme (i.e. Insurance Policy) under section 80DD?
The scheme/insurance policy should provide for payment of Annuity or Lump Sum amount for the benefit of disabled dependent:
- in the event of the death of the individual or HUF member or
- on attaining the age of at least 60 years by such individual or HUF member, and the scheme payment has been discontinued
Which disabilities are eligible for deduction under section 80DD?
Disabilities eligible for deduction under section 80DD are
- Autism
- Celebral Palsy
- Blindness
- Low vision
- Leprosy cured
- Hearing impairment
- Locomotor disability
- Mental retardation
- Mental illness
Who is ‘Dependent’ under Section 80DD?
| Individual | Spouse, Children, Parents, Brothers & Sisters or any of them |
| HUF | Any Member of HUF |
| Who is dependent, wholly or mainly, on such individual or HUF for support & maintenance and who has not claimed deduction under Section 80U during that year. |
What documents are required to claim this deduction?
A valid certificate from a medical authority certifying the disability.
Which Medical Authority issues the certificate required to claim deduction under Section 80DD?
- MD in Neurology
- Pediatric Neurologist in case of children
- Civil Surgeon or CMO of a Govt Hospital
How The Sec 80DD Deduction is different from Sec 80U?
Section 80DD is available for Individual/HUF who is maintaining a Disabled Dependent. However, Sec 80U deduction can be claimed by the Disabled Person himself/herself.
What is Deduction 80DD?
Deduction is for maintaining Disabled Dependent.
Can Sec 80DD Deduction be claimed for Brother/Sister?
Yes, it can be claimed.
Whether filing of Income Tax Return is Mandatory for Claiming Deduction under section 80U?
Yes, deduction can be claimed by filing an ITR only.
What Are Other Important Information About Autism Tax Planning?
Kindly refer to following