Which law and tax regime apply?
This guide covers returns governed by the Income-tax Act, 1961, through FY 2025–26 (AY 2026–27). Section 80U is for a resident individual with a qualifying certified disability. Section 80DD is for a resident individual or resident HUF supporting a qualifying dependant. Both deductions are unavailable under section 115BAC. For tax years beginning on or after 1 April 2026, consult the corresponding provisions and forms under the Income-tax Act, 2025 and Income-tax Rules, 2026.
Compare the two deductions
| Condition | Section 80U | Section 80DD |
|---|---|---|
| Claimant | Resident individual claiming for their own disability | Resident individual or HUF claiming for a qualifying dependant |
| Qualifying person | The individual certified by the prescribed medical authority | Spouse, children, parents, brothers or sisters of the individual, or an HUF member, wholly or mainly dependent on the claimant for support and maintenance, who has not claimed section 80U for that assessment year |
| Amount | ₹75,000 for qualifying disability; ₹1,25,000 for severe disability | The same fixed amounts once the conditions are satisfied |
| Expenditure condition | No expenditure condition | Qualifying treatment (including nursing), training or rehabilitation expenditure during the year, or payment or deposit under a qualifying approved scheme |
| Certificate | Prescribed Rule 11A certificate for the particular disability | Prescribed Rule 11A certificate, in addition to evidence of the qualifying expenditure or scheme payment |
| Tax regime | Old regime | Old regime |
Apply the disability definitions and certification framework referred to in sections 80DD and 80U and Rule 11A. The ordinary qualifying threshold is 40%, and severe disability generally requires 80% or more under the applicable definition. A disability category listed in the Rights of Persons with Disabilities Act, 2016 does not by itself establish tax eligibility: check the relevant tax provision, condition and certificate. These are deductions from income, subject to the aggregate Chapter VI-A limit under section 80A(2), rather than tax credits or expense reimbursements.
Dependency and the section 80U exclusion
The exclusion appears in the definition of dependant in the Explanation to section 80DD(4). A person who has claimed section 80U for the relevant assessment year is outside that definition. An adult child who claims section 80U cannot also be the basis of a caregiver's 80DD claim for that year. A child with no taxable income and no section 80U claim may qualify as a dependant, but the caregiver still has to establish dependency, qualifying expenditure or scheme contribution, certification and the other conditions. A relative's own income is evidence in assessing dependency; it does not supply a separate statutory income threshold.
Eight worked cases
The cases use fictional facts. Unless otherwise stated, the tax comparisons assume FY 2025–26, a resident individual under 60 using the old regime, normal-rate income, no other adjustments or surcharge, and 4% health and education cess. Income in the first two comparisons is the amount immediately before the disability deduction.
Case 1: ₹42,000 spent on a child’s qualifying therapy
Rajesh has ₹16,00,000 before the disability deduction. His nine-year-old son is wholly or mainly dependent on him and certified with autism and 85% disability in the prescribed form. Assume ₹42,000 of qualifying speech therapy and training expenses and no section 80U claim by the child. The section 80DD deduction is ₹1,25,000, leaving ₹14,75,000. Tax including cess falls from ₹3,04,200 to ₹2,65,200, a difference of ₹39,000.
Case 2: An individual with 100% certified visual disability
Kavita has ₹24,00,000 before the deduction and holds the certificate prescribed for her condition under Rule 11A(2)(ii). Section 80U allows ₹1,25,000, leaving ₹22,75,000. Tax including cess falls from ₹5,53,800 to ₹5,14,800, a difference of ₹39,000. Visual disability alone does not call for Form 10-IA.
Case 3: Two siblings contribute to their mother’s support
Aman and Karan help support their mother, who has 65% certified locomotor disability and has not claimed 80U. Assess whom she is wholly or mainly dependent on and which claimant has qualifying expenditure or a qualifying contribution. If the facts establish those conditions for Aman, his statutory deduction is ₹75,000. Shared costs or a private agreement cannot establish a second automatic claim or substitute for the statutory test. If dependency is unclear, resolve the facts before either files.
Case 4: ₹1,00,000 paid into an approved scheme
Assume the father's annual ₹1,00,000 deposit satisfies section 80DD(1)(b) and (2). The deduction depends on the certified disability category, not the deposit amount. In addition to the death-triggered route, the Finance Act, 2022 amendment effective from 1 April 2023 allows a qualifying scheme to provide for payout for the dependant once the subscriber is at least 60 and payments or deposits have stopped. Check the approved terms and the nomination. Section 80DD(3) can deem the contributed amount income when received by the subscriber if the dependant dies first; subsection (3A) protects qualifying amounts received by the dependant under the age-60 route from that provision. The Supreme Court in Ravi Agrawal v. Union of India did not grant retrospective rewriting of the older policy terms.
Case 5: Temporary certificate expires
A temporary Form 10-IA runs from 1 April 2020 to 31 March 2025. Rule 11A(3) covers AY 2021–22 through AY 2025–26, subject to the other conditions. The expired certificate does not support a deduction for FY 2025–26 (AY 2026–27) without a fresh prescribed certificate. Obtain the appropriate renewed certificate and report it as required.
Case 6: Separate disability and insurance claims
A 72-year-old resident father has 60% qualifying certified disability, is mainly dependent on the claimant and does not claim 80U. The claimant has separately incurred eligible rehabilitation expenditure and paid ₹45,000 in eligible health insurance premium for the father by a non-cash mode out of taxable income. Assuming sufficient gross total income, unused parent-group 80D limit and all conditions met, 80DD is ₹75,000 and 80D is ₹45,000 within the ₹50,000 senior-parent cap, for ₹1,20,000 in total. The health premium alone does not establish the 80DD expenditure route.
Case 7: Missing Form 10-IA for cerebral palsy
A taxpayer claims ₹1,25,000 in ITR-2 for a dependant with certified severe cerebral palsy but omits Form 10-IA details. File the applicable form, retain its acknowledgement and correct the relevant return fields using the applicable portal route. If a section 139(9) notice is actually issued, respond through the prescribed workflow within the 15-day period from intimation or further time allowed. Neither a notice nor acceptance of a correction is automatic.
Case 8: Salary standard deduction and section 80U
On ₹12,00,000 gross salary, a taxpayer with 85% qualifying locomotor disability takes the ₹50,000 old-regime salary standard deduction and independently qualifies for ₹1,50,000 under section 80C and ₹1,25,000 under section 80U. These reductions total ₹3,25,000, leaving ₹8,75,000. With the standard deduction and 80C alone, taxable income would be ₹10,00,000 and tax with cess ₹1,17,000. With 80U, tax with cess is ₹91,000, so the incremental saving is ₹26,000. The ₹75,000 standard deduction under the new regime cannot be combined with section 80U.
Frequently asked questions
1. Can either deduction be claimed in the new regime?
No. Section 115BAC excludes both under the 1961 Act.
2. When is Form 10-IA prescribed, and who certifies it?
Rule 11A(2)(i) applies to autism, cerebral palsy and multiple disability. Rule 11A(1) specifies a qualified neurologist (or qualified paediatric neurologist for a child), or a Civil Surgeon or Chief Medical Officer in a government hospital for the conditions it covers. Other cases use the certificate prescribed under Rule 11A(2)(ii).
3. How are the amounts determined?
Apply the qualifying disability or severe-disability definition and prescribed certification. The fixed amounts are ₹75,000 and ₹1,25,000 respectively, subject to the Chapter VI-A limit.
4. Can a spouse be a dependant?
Yes, if wholly or mainly dependent on the claimant for support and maintenance, without an 80U claim for that year, and the remaining 80DD conditions are met.
5. Can an individual claim for a parent-in-law?
A parent-in-law is not included in the individual claimant’s statutory list of relations.
6. Does UDID replace the prescribed certificate?
Do not assume so. Retain the prescribed certificate and complete the applicable return fields. The AY 2026–27 ITR-2 schedules distinguish Form 10-IA particulars, other Rule 11A certificate particulars and UDID where available.
Review earlier certificates and scheme documents separately
A later certificate does not automatically prove entitlement for an earlier year or reopen a completed return. Check the period certified, the then-applicable requirements and whether a lawful correction procedure remains available. A family trust may be a nominee under a qualifying scheme, but a private trust contribution does not itself satisfy section 80DD(1)(b). Keep the scheme approval, qualifying payments and terms distinct from the medical evidence.
Filing checklist
- Confirm the year, residence, regime and appropriate claimant.
- Obtain the prescribed certificate and track renewal if reassessment is required.
- For 80DD, document dependency, absence of a dependant’s 80U claim, and qualifying expenditure or approved scheme payments.
- File electronic Form 10-IA where applicable and reconcile the acknowledgement or other prescribed certificate particulars to the relevant return schedule. Retain the supporting records.
Sources
- Income-tax Act, 1961: sections 16, 80A, 80D, 80DD, 80U, 115BAC and 139
- Rule 11A: medical authority, prescribed certificates and expiry
- Notified AY 2026–27 ITR-2 schedules
- Income Tax Department: AY 2026–27 disability-deduction reporting
- Supreme Court judgment copy: Ravi Agrawal v. Union of India, 2024 INSC 648
- Finance Act, 2026 Gazette copy: section 2 and Part I-A rates for AY 2026–27
- Income Tax Department: transition and AY 2026–27