Flat disability deduction.
Deduction
—
Tax saved
—
Your breakdown
Updates live as you type| Step | Amount |
|---|
A flat deduction, not a reimbursement
Sections 80U and 80DD are unusual because the deduction has nothing to do with how much you actually spent. They give a fixed, flat amount based purely on the certified degree of disability. For a disability of 40 to 79 percent, the deduction is ₹75,000. For severe disability of 80 percent or more, it is ₹1,25,000. Whether your real expenditure that year was ₹5,000 or ₹5 lakh, the deduction is the same flat figure on a valid certificate. This makes it one of the simplest deductions to claim and one of the few where you do not have to hoard bills.
These limits were set in FY 2015-16 and Budget 2025 left them unchanged. The disability categories follow the definitions in the Persons with Disabilities legislation, covering conditions such as blindness, low vision, hearing impairment, locomotor disability, mental illness, autism, cerebral palsy, and others as certified by a medical authority.
80U or 80DD: whose disability is it?
The two sections differ only in who has the disability. Section 80U is claimed by a taxpayer who is themselves a person with a disability. Section 80DD is claimed by a taxpayer who incurs expenditure on, or pays insurance for, a dependent relative with a disability, such as a child, spouse, parent, or sibling. The amounts are identical in both. A subtle point: under 80DD the benefit is tied to your actually maintaining the dependant, and if the dependant predeceases you after you have claimed under a specific insurance scheme, an amount can be taxed back in your hands.
Worked example: 40 to 79 percent disability in the 20 percent slab
Take a taxpayer with a certified disability in the 40 to 79 percent band, in the 20 percent slab. The flat deduction applies regardless of spending.
The ₹75,000 comes off taxable income whether or not any bills exist. The chart shows the two flat tiers and how the deduction jumps to ₹1,25,000 once the severe-disability threshold of 80 percent is crossed.
The certificate is everything
The claim rests entirely on a disability certificate in the prescribed form, issued by a notified medical authority such as a civil surgeon, a chief medical officer, or a specialist at a government hospital. If the certificate carries an expiry, you must obtain a fresh one for the year after it lapses, though for permanent disabilities a one-time certificate generally suffices with the assessing officer. The most common reason a 80U or 80DD claim is questioned is a missing, expired, or non-prescribed-format certificate. Keep Form 10-IA where required for autism, cerebral palsy, and multiple disabilities.
Can I claim 80U and 80DD together?
Yes, they are independent. If you are a person with a disability and you also support a disabled dependant, you can claim 80U for yourself and 80DD for the dependant in the same year. They are not mutually exclusive because they address different people.
Does this deduction work in the new regime?
No. Both 80U and 80DD are available only under the old tax regime. A taxpayer with a disability who is weighing the regimes for FY 2025-26 should add this flat ₹75,000 or ₹1,25,000 to the old-regime side of the comparison before deciding, because it can tip the balance.
How 80DD interacts with a dependant’s insurance policy
Section 80DD has a feature worth understanding if you are providing for a disabled dependant’s future. The deduction is allowed not only for money spent on medical treatment, training, and rehabilitation, but also for premiums paid into a specified insurance or annuity scheme, such as the LIC or other approved plans, that pays the dependant a lump sum or annuity on your death. This is meant to secure the dependant after the caregiver is gone. The flat ₹75,000 or ₹1,25,000 deduction stays the same whether you spend on care, pay such a premium, or both. The catch noted earlier applies: if the dependant predeceases you, the amount paid under the scheme can be brought back as taxable income in the year of their death.
One efficiency point. Because the deduction is flat and does not rise with spending, there is no tax reason to over-document expenses. Get the certificate right, claim the correct slab figure, and keep it simple. The deduction also sits entirely separate from the Section 80D health insurance limit and the 80DDB deduction for specified critical illnesses, so a family dealing with both disability and a notified illness may be eligible under more than one head in the same year.