If you are a Resident Indian or HUF financially supporting a dependent with a disability, you can claim deductions under Section 80DD of the Income Tax Act for the expenses incurred towards their care. TaxSpanner’s 80DD Calculator helps you accurately calculate the eligible deduction, guaranteeing you maximise your tax savings.

What is Section 80DD of the Income Tax Act?

Section 80DD of the Income Tax Act allows you to claim a deduction for the expenses related to the care of a dependent with a disability. The dependent can include a spouse, child, parent, or sibling who has at least 40% disability. The deduction makes sure that those who incur expenses for the well-being of a differently-abled family member get the tax relief they deserve.

Who is Eligible for Section 80DD Deductions?

To claim the 80DD deduction, the following eligibility criteria must be met:

1. Resident Individual or HUF: The person claiming the deduction must be a Resident Indian or Hindu Undivided Family (HUF).
2. Disabled Dependent: The dependent (spouse, child, parent, or sibling) must have a disability of at least 40%. The disabilities are defined by the National Trust or Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities Act, 1999, and the Persons with Disabilities (Equal Opportunities, Protection of Rights, and Full Participation) Act, 1995.
3. Deduction Not Claimed Elsewhere: The dependent cannot claim a similar deduction under any other section.

80DD Deduction Limits – How Much Can You Claim?

The 80DD deduction limit depends on the severity of the disability:

• Rs. 75,000: If the disability of the dependent is between 40% and 79%.
• Rs. 1,25,000: If the disability is 80% or more.

Example:

Riya, a resident Indian, financially supports her visually impaired father by contributing Rs. 60,000 annually for his treatment. If her father’s disability is 40% or more, she can claim a deduction of Rs. 75,000. If the disability is 80% or higher, the deduction increases to Rs. 1,25,000.

How to Use TaxSpanner’s 80DD Calculator

Follow these simple steps to calculate your 80DD Income Tax deductions with TaxSpanner’s easy-to-use 80DD calculator:

1. Go to the TaxSpanner website and navigate to Resources > Calculators > 80DD Calculator.
2. Choose the financial year for which you wish to claim the deduction.
3. Select whether you are a Resident Individual/HUF or NRI.
4. If your dependent has claimed a deduction under Section 80U, select Yes, otherwise select No.
5. Choose whether you are opting for the new or old tax regime.
6. Enter the percentage of disability (Normal or Severe).
7. Click on Calculate and your eligible deduction amount will be displayed instantly.

With these simple steps, you can effortlessly calculate your 80DD deduction.

Why Use TaxSpanner’s 80DD Calculator?

1. Accurate Deduction Calculation

   Our 80DD calculator gives you an exact estimate of your tax benefits, removing all the guesswork. You can plan your finances better by knowing how much you can claim for your dependent’s medical expenses.

2. Simplified Tax Filing Process

   Filing taxes with dependents who have disabilities can be complex. The 80DD Income Tax calculator simplifies the process, helping you file your taxes accurately and on time without any hassle.

3. Maximize Your Tax Savings

   By using the 80DD deduction calculator, you make sure that you are claiming the maximum possible deduction under Section 80DD of the Income Tax Act, reducing your overall tax liability.

Benefits of Section 80DD Deduction

• Reduces Taxable Income: The 80DD deduction limit of up to Rs. 1,25,000 lowers your taxable income.
• Supports Families with Disabled Dependents: This provision makes sure that individuals supporting differently-abled family members receive financial relief.
• Easy to Claim: With TaxSpanner's easy-to-use tools, claiming your 80DD deduction is quick and hassle-free.

Take the first step towards smart tax planning by using our 80DD calculator today! Get an accurate estimate of the deduction you can claim, simplify your tax filing process, and get the benefits you deserve.