Section 127
Section 127: deduction for maintenance and treatment of a disabled dependant
Section 127 is the Income-tax Act, 2025's version of the deduction long known as "80DD" - for a resident individual or HUF who incurs expenditure on the medical treatment, training and rehabilitation of a dependant with a disability, or who sets aside money in an approved scheme for that dependant's future maintenance.
What qualifies
The deduction is available where the assessee, during the year, either:
- Incurred expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant with a disability; or
- Paid or deposited an amount under an approved scheme (run by LIC, another insurer, or the specified administrator) for the future maintenance of a dependant with a disability - structured to pay out an annuity or lump sum on the assessee's death or on turning 60.
How much can be deducted
| Dependant's condition | Deduction |
|---|---|
| Person with disability | ₹75,000 |
| Person with severe disability | ₹1,25,000 |
Who counts as a "dependant"
For an individual: spouse, children, parents, brothers and sisters - anyone wholly or mainly dependant on the individual for support and maintenance. For an HUF: any member of the family who meets the same dependency test.
A dependant who has separately claimed a deduction under Section 154 (the disability deduction for the person themselves) cannot also be the basis for someone else's Section 127 claim.
Conditions to keep in mind
- A medical certificate from a recognised medical authority, in the prescribed form, must be filed with the return of income.
- If the certificate specifies a reassessment date, the deduction lapses after that date until a fresh certificate is obtained and filed.
- If the dependant dies before the assessee (or before the age/event condition in the scheme is met), amounts paid or deposited under the scheme are treated as the assessee's own income in the year received, and taxed accordingly.
Frequently asked questions
Is this the same as the deduction people call "80DD"?
Yes, in substance - support for a disabled dependant's treatment or maintenance - but it's numbered Section 127 under the Income-tax Act, 2025.
Is the deduction based on actual expenditure?
No - unlike many deductions, this is a fixed amount (₹75,000 or ₹1,25,000 depending on severity), regardless of how much was actually spent, as long as the conditions are met.
Can I claim this for my own disability?
No - Section 127 is for a dependant's disability. If you have a disability yourself, the equivalent deduction is Section 154.
Related sections
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Check your Section 127 dependant-care deduction with our tax teamLast updated 9 September 2026