The Revenue Tax Act, 1961 (IT Act, 1961) offers numerous tax advantages to scale back the tax burden in case bills are incurred in the direction of medical bills for self/household or if the tax assessee or his/her dependant is disabled. These tax deduction advantages are laid out in Part 80DD, Part 80DDB and Part 80U of the IT Act, 1961. Whereas the advantages provided by these sections appear related, there are a couple of key variations. Within the following sections, we’ll talk about the important thing variations between advantages u/s 80DD, 80DDB and 80U.
What are the Variations in Applicability?
By way of applicability, every part specifies the kind of expense being incurred and to whom it applies. The next are the situations when deduction underneath every part is relevant:
| Revenue Tax Act Part | Applicability |
| Part 80DD | Upkeep together with medical remedy of disabled dependant |
| Part 80DDB | Medical Therapy of Self/Dependant |
| Part 80U | Upkeep together with medical remedy of disabled assessee (self) |
Thus in case of medical bills with respect to disabled dependant, Part 80DD, is relevant whereas in case, the assesse himself/herself is disabled, deduction will be obtained u/s 80U. Then again, deduction underneath Part 80 DDB is relevant for medical bills (for specified sicknesses) in case of both self/dependant. In all instances, “dependants” of a person assessee could embrace partner, youngsters, father, mom or siblings who’re wholly or primarily depending on the assesse.
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Variations between assessee sorts who can declare the tax advantages u/s 80DD, 80DDB and 80U
The next are the variations between the varied forms of revenue tax assessees who can declare tax deduction underneath totally different sections:
| Revenue Tax Act Part | Applicability |
| Part 80 DD | Resident Particular person/Hindu Undivided Household (HUF) |
| Part 80 DDB | Resident Particular person/ HUF |
| Part 80 U | Resident Particular person |
Thus, whereas Part 80DD and Part 80DDB deductions will be claimed by each resident people/HUF, Part 80U profit will be claimed solely by resident people. None of those advantages will be claimed by non-resident revenue tax assesse. In case of 80DD and 80DDB, the deduction could also be claimed by a HUF tax assessee for medical bills/upkeep of any of the HUF members with incapacity or have undergone remedy within the relevant monetary 12 months.
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What are the variations in deduction quantities for Part 80DD, Part 80DDB and Part 80U?
The quantity which you could declare as deduction underneath sections 80DD, 80DDB and 80U fluctuate underneath the principles specified by the Revenue Tax Act, 1961. The next are the utmost deduction accessible for FY 2022-23:
| Revenue Tax Act Part | Most Deduction Obtainable for FY |
| Part 80 DD | Rs. 1.25 lakh (extreme incapacity)/Rs. 75,000 (non-severe incapacity). |
| Part 80 DDB | Rs. 100,000 for senior residents aged 60 years or extra/Rs. 40,000 for residents aged lower than 60 years. |
| Part 80 U | Rs. 1.25 lakh (extreme incapacity) /Rs. 75,000 (non-severe incapacity). |
You must nevertheless take into account that it’s important to declare the deduction u/s 80DDB on the premise of precise bills incurred. So, in case your precise remedy bills are decrease than the quantity specified as per the part, your tax deduction will likely be restricted to the precise expense incurred on this case. Then again, in case of Part 80DD and Part 80U, the deduction will be obtained irrespective of the particular expense incurred so long as a sound incapacity certificates is out there from a reliable medical authority corresponding to a neurologist, urologist, oncologist, immunologist, haematologist, and so forth. Moreover, incapacity must be no less than 40% as per certifying authority with the intention to get the advantages underneath Part 80DD and Part 80U, whereas this isn’t relevant when claiming deduction u/s 80DDB.
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