Section 80DD Deduction for AY 2026-27: ₹75,000 or ₹1.25 Lakh for a Disabled Dependant

What Is the Section 80DD Deduction?

Section 80DD of the Income-tax Act, 1961 provides a fixed deduction for eligible support of a disabled dependant. A resident individual or Hindu Undivided Family (HUF) may claim ₹75,000 for a dependant with a disability or ₹1,25,000 for a dependant with a severe disability.

The deduction is fixed. It does not increase if your qualifying expenses are higher, or decrease if they are lower. However, you must satisfy the eligibility conditions, including incurring eligible expenditure or paying or depositing money under a qualifying scheme.

For AY 2026-27, report income earned from 1 April 2025 to 31 March 2026. The return is governed by the Income-tax Act, 1961. Section 80DD is a Chapter VI-A deduction available only under the old tax regime. The new tax regime is the default.

Section 80DD Deduction Amount

These amounts are deductions from gross total income, subject to the conditions in Section 80DD. They are not reimbursements, tax credits or deductions limited to the amount spent. Chapter VI-A deductions cannot create a negative total income.

Example: If you spend ₹30,000 on eligible rehabilitation and nursing for a dependant with a certified disability of 55%, the deduction is ₹75,000, provided all other conditions are met. If the dependant has certified severe disability of 80% or more, the deduction is ₹1,25,000.

The deduction does not mean you will receive ₹75,000 or ₹1,25,000 as a refund. It reduces taxable income, and the actual tax saving depends on your income and tax position.

Who Can Claim the Deduction?

You may claim Section 80DD if you are:

• A resident individual; or
• A resident HUF.

A non-resident individual cannot claim Section 80DD. The section also does not cover a taxpayer’s own disability. An individual claiming a deduction for their own disability should check the separate rules under Section 80U.

Who qualifies as a dependant?

For an individual taxpayer, a dependant may be the taxpayer’s:

• Spouse;
• Child;
• Parent;
• Brother; or
• Sister.

The dependant must be wholly or mainly dependent on the taxpayer for support and maintenance. The law does not set a simple income limit for this test. Consider the person’s circumstances and keep records that support the dependency claim.

For an HUF, the dependant must be a member of the HUF and wholly or mainly dependent on it for support and maintenance.

A dependant for whom the taxpayer claims Section 80DD must not claim a deduction under Section 80U for the same assessment year. The same person’s disability cannot be used to claim both deductions for the same year.

What Disability Qualifies?

The disability must be certified by the appropriate medical authority under the applicable disability law and income-tax rules. The certificate should state the disability category and its extent.

As a general guide, the distinction is:

• A person with a disability generally has a certified disability of at least 40%.
• Severe disability generally means a certified disability of 80% or more.

Use the percentage and category stated by the competent medical authority; do not estimate the extent yourself. The applicable definitions and certificate requirements can depend on the disability category.

A certificate may be issued for a limited period. If it requires reassessment after a specified date, check whether a renewed certificate is needed for the year you are claiming. Do not assume an expired certificate remains valid for later assessment years.

What Expenditure or Payment Is Required?

Section 80DD has two routes. During FY 2025-26, the taxpayer must either incur eligible expenditure for the dependant or make a qualifying payment or deposit under an approved scheme.

Eligible expenditure

The expenditure must be for the dependant’s:

• Medical treatment, including nursing;
• Training; or
• Rehabilitation.

Keep bills, receipts, payment records and other documents that explain the nature of the expense. The deduction remains a fixed amount, but the expenditure condition must still be met.

Payment or deposit under an approved scheme

Instead of incurring eligible expenditure, the taxpayer may pay or deposit an amount under a qualifying scheme framed by the Life Insurance Corporation, another insurer, the Administrator or a specified company and approved for this purpose.

The scheme must meet statutory conditions. Among other requirements, it must provide for an annuity or lump-sum payment for the dependant’s benefit if the individual taxpayer or relevant HUF member dies. The taxpayer must nominate the dependant, another person or a trust to receive the amount for the dependant’s benefit.

Not every life insurance policy or investment account qualifies. Check that the scheme meets Section 80DD’s conditions and keep records of payments or deposits and the nomination.

What if the dependant dies first?

There may be a tax consequence if the taxpayer claimed the deduction for payments or deposits under an approved scheme and the dependant dies before the taxpayer or relevant HUF member. The amount received by the taxpayer may be treated as income in the year of receipt.

The law includes a limited exception for certain annuity or lump-sum amounts received by the dependant under the scheme after the subscriber reaches age 60 or more and payments or deposits to the scheme have stopped. Check the scheme terms and statutory conditions before relying on this exception.

Section 80DD and the Tax Regime

Section 80DD is not available under the new tax regime under Section 115BAC. To claim it for AY 2026-27, you must be eligible for and select the old tax regime.

The new regime is the default. The rules for opting out depend on whether you have business or professional income:

• No business or professional income: You generally select the regime in your income-tax return. The option to use the old regime must be exercised by the due date under Section 139(1).
• Business or professional income: You generally need to submit Form 10-IEA by the applicable Section 139(1) due date to opt out of the new regime. Restrictions apply to switching regimes in later years.

Telling your employer that you prefer the old regime for tax deduction at source does not itself exercise the tax-regime option in your return. You must follow the regime rules when filing.

A belated return does not necessarily let you switch to the old regime and claim Section 80DD. The timing and availability of the option depend on your income and the applicable rules. Check this before preparing or submitting a late return.

Which ITR Form Should You Use?

The deduction does not determine the ITR form by itself. Choose the form based on your income sources and eligibility for the applicable AY 2026-27 form.

A resident individual may be eligible to use ITR-1 only if all the form’s conditions are met. Income above the form’s limit, certain capital gains, business income or other specified circumstances may require another form. A taxpayer with business or professional income may need a business return form, depending on the facts.

ITR-1 is not available to an HUF. The HUF should select the appropriate return form based on its income and circumstances.

For form-selection and filing steps, see TaxClear’s AY 2026-27 online ITR filing guide. TaxClear also provides income-tax return filing assistance.

How to Claim Section 80DD in Your ITR

Before filing, confirm your eligibility, tax regime, certificate and supporting records. The return asks for information about both the deduction and the dependant.

1. Check the dependant and dependency conditions

Confirm that the dependant falls within the permitted relationship category—or is a member of the HUF—and is wholly or mainly dependent on the taxpayer for support and maintenance.

Also confirm that the dependant is not claiming Section 80U for the same assessment year.

2. Check the disability certificate

Review the certificate issued by the appropriate medical authority. Confirm that it states the disability category and extent and remains valid for the relevant period.

The Income Tax Department’s ITR guidance asks taxpayers claiming Section 80DD to provide the relevant Form 10-IA acknowledgement details. File Form 10-IA before filing the return where required by the current portal instructions. Certificate requirements can depend on the disability category, so check the instructions and the dependant’s certificate.

3. Keep records of expenditure or scheme payments

Maintain documents for the route that applies:

• Medical treatment, nursing, training or rehabilitation: Bills, receipts and payment evidence.
• Approved scheme: Policy or scheme documents, payment or deposit records, and nomination details.

These records can help support the claim if it is reviewed. The fixed deduction does not remove the need to meet the statutory conditions.

4. Choose the eligible tax regime

Compare the old and new regimes using your complete income and deductions. Section 80DD is available only under the old regime. If you have business or professional income, review the Form 10-IEA and regime-switching requirements before filing.

5. Complete the relevant ITR fields

The applicable return may ask for:

• Nature and type of disability;
• Deduction amount;
• Type of dependant;
• Dependant’s PAN and Aadhaar;
• Form 10-IA filing date and acknowledgement number, where applicable; and
• UDID number, if available and requested.

Use ₹75,000 for a qualifying dependant with a disability, or ₹1,25,000 where the dependant has certified severe disability of 80% or more. Do not enter the dependant’s own Section 80U claim as the taxpayer’s Section 80DD deduction.

6. Review and verify the return

Before submitting, check that:

• The return is for AY 2026-27 and reports FY 2025-26 income;
• The selected tax regime allows Section 80DD;
• The deduction amount matches the certified disability category;
• The dependant’s details are consistent with the certificate and records; and
• You verify the return within the applicable time after filing.

Filing Deadline and Late Returns

The original due date under Section 139(1) depends on your category and circumstances. Different deadlines or official extensions may apply. Check the current Income Tax Department deadline information for your category.

For AY 2026-27, a belated return may generally be filed by 31 December 2026 or before completion of assessment, whichever is earlier, subject to the law and any applicable late fee or interest. Missing the original deadline can also affect your ability to choose the old regime, particularly if you must opt out of the default new regime. Confirm the regime consequences before filing late.

Common Mistakes to Avoid

• Claiming Section 80DD under the new tax regime.
• Claiming ₹1,25,000 without a certificate establishing severe disability of 80% or more.
• Claiming for a dependant outside the relationship categories allowed by law.
• Assuming that any relative living with the taxpayer is automatically a dependant.
• Claiming Section 80DD when the dependant has claimed Section 80U for the same year.
• Assuming the deduction must equal actual expenses, or that higher expenses increase the fixed deduction.
• Treating an ordinary insurance policy as an approved Section 80DD scheme without checking its conditions.
• Using an expired disability certificate without checking whether a renewed certificate is required.
• Relying only on the tax-regime declaration given to an employer instead of selecting the regime correctly in the ITR.
• Choosing an ITR form without checking all income and eligibility conditions.

Frequently Asked Questions

Is Section 80DD a deduction of ₹75,000 or a reimbursement?

It is a fixed deduction from gross total income, not a reimbursement. The deduction is ₹75,000 for disability and ₹1,25,000 for certified severe disability, subject to the statutory conditions.

Can I claim ₹1,25,000 if the dependant has 75% disability?

No. The higher deduction applies when the dependant has certified severe disability of 80% or more.

Can I claim Section 80DD for my own disability?

No. Section 80DD concerns a disabled dependant. A resident individual claiming for their own disability should check Section 80U.

Can an NRI claim Section 80DD?

No. Section 80DD is for a resident individual or resident HUF, subject to the other conditions.

Is Form 10-IA required for every disability category?

The portal’s return guidance asks for Form 10-IA details for Section 80DD claims. Check the current filing instructions and the prescribed certificate requirements for the dependant’s disability category.

Can I claim Section 80DD under the new tax regime?

No. Section 80DD is not allowed under the new tax regime. To claim it, you must be eligible for and choose the old regime within the applicable time and procedure.