Section 80DD Deduction For Maintenance Of A Dependent With Disability: Regime- Changes

Section 80DD Deduction for Maintenance of a Dependent with Disability: Regime- Changes

If you are supporting a child, parent or sibling with a disability you know that the costs can be high. Therapy sessions, schooling, caregivers, assistive devices and medical follow-ups can add up quickly. Section 80DD was created to help families like yours by offering a fixed deduction.

Many taxpayers are confused about whether Section 80DD applies if they switch to the new tax regime. The Income Tax Act 2025 has changed some section numbers, which can be confusing. This article explains how the deduction works, what’s changed and how to decide which regime saves your money.

Key Takeaways

Section 80DD offers a deduction of ?75,000 for a dependent with 40% or more disability and ?1,25,000 for severe disability (80% or more).

Under the Income Tax Act, 2025 this benefit is now found under Section 127 effective from 1 April 2026.

The deduction is available under the old tax regime. It cannot be claimed if you opt for the new regime.

The amount claimed has nothing to do with your spending; it's a fixed benefit once conditions are met.

Families should compare both regimes before filing as the "lower slab rates" of the regime don't always beat the deductions of the old one.

What is Section 80DD?

Section 80DD helps you reduce your income if you are financially responsible for a dependent family member with a disability. The deduction is a fixed amount, not based on your expenses.

The government created this section to help taxpayers with financial responsibilities. Supporting someone with a disability is not a one-time expense. The government wants to provide structural relief.

Under the Income Tax Act, 2025 Section 80DD is now Section 127. The substance hasn't changed. Only the section number and some drafting languages have been updated.

Who Can Claim Section 80DD?

This deduction is available to individuals and Hindu Undivided Families (HUFs). Non-resident Indians cannot claim it even if they're supporting a family member in India.

For a taxpayer an eligible dependent can be:

A spouse

Children (son or daughter)

Parents

Siblings (brothers or sisters)

For an HUF any member of the family can qualify as the dependent.

To claim this, benefit the dependent must be wholly or mainly dependent on you for support and maintenance. They must not have already claimed a deduction for their disability under Section 80U (now Section 154).

 

What Expenses Are Covered?

Section 80DD covers a range of caregiving costs including:

Treatment, including ongoing nursing care

Training and rehabilitation programmes

Premiums paid towards insurance schemes

Deposits made under approved schemes

You don't need to prove every rupee spent. Once you meet the eligibility conditions and have the certification the deduction is available as a flat amount.

How Much Deduction Can Be Claimed?

The deduction amount depends on the severity of the disability.

For a dependent with a disability of 40% or more (but than 80%) you can claim ?75,000.

For a dependent with disability (80% or more) the deduction is ?1,25,000.

Severe disability is certified by an authority and the certificate must state the percentage clearly.

How Has Section 80DD Changed Under the New Tax Regime?

Under the tax regime Section 80DD (now Section 127) works as described above. A flat deduction of ?75,000 or ?1,25,000 depending on severity.

Under the old tax regime this deduction is not available. The new regime was designed around slab rates in exchange for giving up most Chapter VI-A style deductions.

This is a trade-off. If you're a taxpayer supporting a dependent with a disability and claiming ?1,25,000 that's real money reducing your taxable income every year under the old regime.

Practical Examples

Salaried employee Rohan earns ?12,00,000 a year. Has a 10-year-old daughter certified with 55% disability. Under the old regime he claims ?75,000 under Section 127 along with other deductions.

Taxpayer Meena supports her father, who has been certified with 85% disability. She can claim ?1,25,000 under Section 127 for disability.

Arjun has an income of ?15,00,000 and a disabled sibling with 60% disability. Under the old regime after claiming ?75,000 under Section 127 plus other eligible deductions his taxable income drops to a level where the higher old-regime slab rates still result in lower final tax than the new regimes flatter slabs.

Documents Required

To claim this deduction, keep the following ready:

A valid disability certificate from an authority

Medical records supporting the treatment or condition

Insurance policy documents if you're claiming based on premiums paid towards an approved scheme

Proof establishing that the dependent relies on you for maintenance

 

Common Mistakes Taxpayers Make

Section 80DD (127) with Section 80U (154)

Claiming the deduction for a family member who doesn't meet the definition of a dependent

Assuming the deduction is based on expenses rather than being a flat amount

Filing without a disability certificate or with one that’s expired

Tax Planning Tips

Compute your tax liability under both regimes before deciding

Keep disability certificates updated before the deadline

Maintain a folder with all medical and insurance documentation

Review whether an approved insurance scheme, for your dependent makes sense as part of your long-term planning

Get an opinion from a Chartered Accountant especially if you have a mix of salary, business income or capital gains alongside this deduction. This is because choosing a tax regime affects all of them together.

Frequently Asked Questions

Who can claim this deduction?

Resident individuals and HUFs can claim it. NRIs are not eligible.

Who qualifies as a dependent?

For individuals it can be their spouse, children, parents or siblings. For HUFs it can be any member of the family.

Can both parents claim the deduction for the child?

Usually, one parent can claim the deduction for a given dependent in a tax year. This depends on who's actually taking care of the child financially.

What is disability?

It's a disability of 80% or more. A medical authority must certify it.

Is expenditure necessary to claim the deduction?

No, it's not. The deduction is a fixed amount. Does not depend on how much you spent during the year.

What documents are required?

You need a disability certificate, medical records and insurance documentation if applicable.

Is Section 80DD under the New Tax Regime?

No, it's not. You can only claim it under the tax regime.

What is the difference between Section 80DD and Section 80U?

Section 80DD applies when you're supporting a dependent with a disability. Section 80U applies when you, the taxpayer has the disability.

Can HUFs claim this deduction?

Yes, they can. This is if any member of the HUF is a dependent with a certified disability.

Conclusion

Section 80DD helps lessen the burden of caring for a dependent with a disability. Under the Income Tax Act, 2025 its purpose remains the same. Its section number has changed to Section 127.

The only change is that it's no longer available under the new tax regime. If you choose the new regime you'll have to give up this deduction.

For families in this situation don't decide on autopilot. Run the numbers, factor in every deduction you're eligible for and then decide.

Tax rules can change with each Finance Act. So, take this article as a starting point, not the word.

If you're supporting a dependent, with a disability. Are unsure which regime works better for your income and expenses meet with a Chartered Accountant or a qualified tax advisor before you file. A short consultation now can save you more than it costs.