The definition of disability is stated in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. It includes individuals with autism, cerebral palsy and multiple disabilities (certified by an authorised medical authority) who are considered disabled persons. However, they must have a disability of at least 40% to claim a tax deduction.
On the other hand, dependent (under Section 80DD) refers to spouse, children, parents, siblings, members of HUF.
Together, disabled dependents refer to any individual (spouse, children, parents, siblings, member of HUF) who has 40% of disability (certified by an official medical authority).
Note: Deduction under Section 80DD of the Income Tax Act is available for disabled dependents of the taxpayer and not the taxpayer himself.
As the definition of disability is apparent to individuals, lets’ learn different natures of disability that fall under Section 80DD. Under this section, the following kinds of disability and severe disability are considered under Section 80DD of the Income Tax Act.
- Hearing impairment
- Mental retardation
- Locomotor disability
- Low vision
- Mental illness
- Cerebral palsy