Section 80DD: Deduction for a Dependant with Disability

Section 80DD lets you deduct a fixed amount for a dependant with a disability, whether or not you spend that amount. The deduction needs the old tax regime in most sources.
 

• Amount: Rs. 75,000 for a disability of 40% to 79%
• Severe disability: Rs. 1,25,000 for a disability of 80% or more
• Who: a resident individual or HUF, for a dependant
• Proof: a Form 10-IA certificate from a medical authority
• Overlap: not with Section 80U for the same person in the same year

• Regime: old regime, so compare both before you claim

  
  

Compare your tax in both regimes before you declare one to your employer. Bajaj Finance assesses a home loan on income, existing obligations and credit record, so a deduction does not change your eligibility.

Section 80DD of the Income Tax Act, 1961 is a deduction for the cost of caring for a dependant with a disability. The deduction is a fixed amount, set by the level of disability. You do not need bills for the full figure.

Under the Income Tax Act, 2025, which applies from 1 April 2026, the deduction becomes Section 127, and the certificate Form 10-IA becomes Form 30, according to the Income Tax Department's Form 30 document and two tax guides. Returns for financial year (FY) 2025-26 still use Section 80DD.

Only a resident individual or a Hindu Undivided Family can claim Section 80DD. Non-residents are excluded.
 

The dependant must have a disability of at least 40%, certified by a medical authority. The test refers to the Rights of Persons with Disabilities Act, 2016. The dependant must be wholly or mainly dependent on you for support.

You can deduct Rs. 75,000 for a disability of 40% to 79%, and Rs. 1,25,000 for a severe disability of 80% or more. The amount is fixed.
 

Formula used: Tax saved = deduction × marginal rate × 1.04 for cess.

At the 30% slab, Rs. 75,000 saves Rs. 23,400 and Rs. 1,25,000 saves Rs. 39,000. The deduction counts within your total Chapter VI-A deductions, which cannot exceed your gross total income.

Two uses of money qualify, and either one supports the claim. You can spend on medical treatment, training and rehabilitation of the dependant. You can also pay a premium or deposit into a scheme that provides for the dependant's maintenance.

The scheme must come from an insurer and be approved by the Insurance Regulatory and Development Authority of India (IRDAI). It must pay an annuity or a lump sum for the dependant after your death.

If the dependant dies before you, the amount returned to you is taxable in the year you receive it. Plan the scheme with that rule in mind.

You need a disability certificate in Form 10-IA, issued by a medical authority, such as a government hospital's specialist or a civil surgeon. The certificate states the type and percentage of the disability. The percentage decides whether you claim Rs. 75,000 or Rs. 1,25,000.

Form 30 replaces Form 10-IA from Tax Year 2026-27, according to the sources above. The certificate states how long it is valid. If the disability is not permanent, renew the certificate before it lapses, and claim only for the years it covers.

Keep the certificate with your tax file. The department can ask for it after you file.

Section 80DD covers a dependant's disability, and Section 80U covers your own. Both give the same amounts: Rs. 75,000 and Rs. 1,25,000.
 

You cannot claim both for the same person in the same year.

Most sources say no. The new regime disallows most Chapter VI-A deductions, and Section 80DD is not one of the few that it keeps.

One tax guide describes the deduction as available in both regimes, so the sources are not unanimous. Check the allowed deductions in the return form for your regime. Compare your total tax under both regimes before you choose, as the example below shows.

Rajesh Iyer, 49, lives in Coimbatore and earns Rs. 2.1 lakh a month, with a CIBIL Score of 774. His son has a disability of 85%, so Rajesh qualifies for Rs. 1,25,000. He also claims Rs. 1.5 lakh under Section 80C, Rs. 25,000 under Section 80D and Rs. 2 lakh of home loan interest under Section 24(b). The figures use FY 2025-26 slabs.
 

The 80DD deduction saves Rajesh Rs. 39,000 in the old regime. The new regime still costs Rs. 93,600 less in total, so he picks the new regime. A deduction on its own rarely justifies the old regime.

No. Bajaj Finance assesses income, existing obligations and credit record, and a deduction does not change your eligibility. The disability deduction and the home loan interest deduction under Section 24(b) both need the old regime, so weigh them together. Bajaj Finance does not offer home loans to Non-Resident Indians (NRIs).
 

Approval timelines can extend where your returns and income records need clarification, and minimum income thresholds can differ by city. Check your home loan eligibility before you decide.