Save income tax with medical expenses: Claim deduction while filing ITR u/s 80DD and 80U on treatment cost of a disabled person
income tax return (ITR) to save on taxes.
There are two deductions under sections 80DD and 80U, using which an individual can reduce their total taxable income. By reducing the total income, ultimately an individual is paying a lower quantum of tax.
What is the difference between section 80DD and 80U tax deduction
While both the deductions under sections 80DD and 80U are meant for disabled persons, there is a fine difference as to how they are applied.
«One of the major differences between section 80DD and section 80U is that 80U is available to the taxpayer himself who is suffering from any disability. Whereas 80DD is available as a deduction in respect of maintenance including medical treatment of a dependent (spouse, children, parent, brother and sister) who is a person with disability,» says CA Deepak Chopra, Direct Tax committee Chairman, Karnataka State Chartered Accountants Association (KSCAA).
Both deductions cannot be claimed on the same expense. If you are a person with disabilities, you can claim a deduction under section 80U. However, this deduction is only available if your caretaker or family members have not already claimed a deduction under section 80DD for taking care of you.
What are the conditions under which section 80DD tax deduction can be claimed
As per Dr. Suresh Surana, a practicing chartered accountant, section 80DD provides that this deduction can be claimed with respect to:
a. Expenses incurred for the medical treatment (including nursing), training and rehabilitation of a
