The Income Tax Act, 1961 (IT Act, 1961) provides various tax benefits to reduce the tax burden in case expenses are incurred towards medical expenses for self/family or if the tax assessee or his/her dependant is disabled. These tax deduction benefits are specified in Section 80DD, Section 80DDB and Section 80U of the IT Act, 1961. While the benefits offered by these sections seem similar, there are a few key differences. In the following sections, we will discuss the key differences between benefits u/s 80DD, 80DDB and 80U.
What are the Differences in Applicability?
In terms of applicability, each section specifies the type of expense being incurred and to whom it applies. The following are the instances when deduction under each section is applicable:
| Income Tax Act Section | Applicability |
| Section 80DD | Maintenance including medical treatment of disabled dependant |
| Section 80DDB | Medical Treatment of Self/Dependant |
| Section 80U | Maintenance including medical treatment of disabled assessee (self) |
Thus in case of medical expenses with respect to disabled dependant, Section 80DD, is applicable while in case, the assesse himself/herself is disabled, deduction can be obtained u/s 80U. On the other hand, deduction under Section 80 DDB is applicable for medical expenses (for specified illnesses) in case of either self/dependant. In all cases, “dependants” of an individual assessee may include spouse, children, father, mother or siblings who are wholly or mainly dependent on the assesse.
Differences between assessee types who can claim the tax benefits u/s 80DD, 80DDB and 80U
The following are the differences between the various types of income tax assessees who can claim tax deduction under different sections:
| Income Tax Act Section | Applicability |
| Section 80 DD | Resident Individual/Hindu Undivided Family (HUF) |
| Section 80 DDB | Resident Individual/ HUF |
| Section 80 U | Resident Individual |
Thus, while Section 80DD and Section 80DDB deductions can be claimed by both resident individuals/HUF, Section 80U benefit can be claimed only by resident individuals. None of these benefits can be claimed by non-resident income tax assesse. In case of 80DD and 80DDB, the deduction may be claimed by a HUF tax assessee for medical expenses/maintenance of any of the HUF members with disability or have undergone treatment in the applicable financial year.
What are the differences in deduction amounts for Section 80DD, Section 80DDB and Section 80U?
The amount that you can claim as deduction under sections 80DD, 80DDB and 80U vary under the rules specified by the Income Tax Act, 1961. The following are the maximum deduction available for FY 2019-20:
| Income Tax Act Section | Maximum Deduction Available for FY |
| Section 80 DD | Rs. 1.25 lakh (severe disability)/Rs. 75,000 (non-severe disability). |
| Section 80 DDB | Rs. 100,000 for senior citizens aged 60 years or more/Rs. 40,000 for citizens aged less than 60 years. |
| Section 80 U | Rs. 1.25 lakh (severe disability) /Rs. 75,000 (non-severe disability). |
You should however keep in mind that you have to claim the deduction u/s 80DDB on the basis of actual expenses incurred. So, if your actual treatment expenses are lower than the amount specified as per the section, your tax deduction will be limited to the actual expense incurred in this case. On the other hand, in case of Section 80DD and Section 80U, the deduction can be obtained irrespective of the actual expense incurred as long as a valid disability certificate is available from a competent medical authority such as a neurologist, urologist, oncologist, immunologist, haematologist, etc. Additionally, disability needs to be at least 40% as per certifying authority in order to get the benefits under Section 80DD and Section 80U, while this is not applicable when claiming deduction u/s 80DDB.