Direct Tax Laws & International Taxation · Deductions from Gross Total Income

Deductions for Specified Persons and Individuals (CA Final Direct Tax)

Updated 5 October 2026 · Fact-checked

These are deductions from gross total income for particular taxpayers: a person with disability, a disabled dependant, treatment of specified diseases, and interest income of individuals and senior citizens. Some are fixed amounts, some are actual spend up to a limit. Check who the assessee is, the condition and certificate, apply the limit, then cap at gross total income.

Understand Deductions for Specified Persons and Individuals

Deductions from gross total income are given after you have added up income under all heads. They reduce gross total income to total income. The deductions in this topic are not about what you earn from a business. They are about who you are (a person with disability, a senior citizen) or whom you support (a disabled or ill dependant).

There are two types. A fixed deduction is given in a set amount once the conditions are met, whatever you actually spent. Deduction for a person with disability and for maintenance of a disabled dependant are fixed. An actual-expense deduction is limited to what you really paid, up to a ceiling. Treatment of specified diseases is of this kind, and the amount is reduced by any insurance or employer reimbursement.

The interest deductions work differently again. A resident individual or HUF can deduct a limited amount of interest on savings accounts. A resident senior citizen instead gets a larger deduction on interest from deposits with banks, co-operative banks and post offices. Interest on company deposits, bonds or loans to others does not qualify.

The position on who can claim which interest deduction is based on the earlier provisions (sections 80TTA and 80TTB of the 1961 Act). Under those provisions, the senior citizen deduction was open only to a resident senior citizen. A resident senior citizen could not claim the savings account deduction, because the senior citizen deduction took its place. A non-resident senior citizen was not barred from the savings account deduction, because the senior citizen deduction was not open to them. Confirm this against the Income-tax Act, 2025 as amended by the Finance Act, 2026 before you treat it as settled.

Three conditions decide most questions: the residential status (most of these need a resident individual, and the HUF can claim some; the specified disease deduction, for example, is for residents), the age or disability level (senior citizen means 60 or more years; disability means 40% or more; severe disability means 80% or more), and the certificate from the prescribed medical authority or specialist. Without the required certificate or prescription, the claim generally fails.

Two more points matter. The total of deductions cannot exceed gross total income. Deductions are not allowed against income taxed at special rates, such as short-term capital gains under section 111A and long-term capital gains. So the amount you can claim is limited to gross total income after excluding such special-rate income. These deductions are also meant for the regular regime. If the individual opts for the new concessional regime, they are generally not available. Always read the question for the regime. The amounts quoted in this page are the figures under the earlier provisions. Confirm them against the table of the Income-tax Act, 2025 as amended by the Finance Act, 2026, before treating any figure here as fixed.

Key rules to remember

Person with disability (self): As under the earlier provision (section 80U of the 1961 Act), resident individual with disability of 40% or more: ₹75,000. Severe disability (80% or more): ₹1,25,000; Fixed amount. No need to spend anything. Medical authority certificate is required. These are the earlier-provision figures and are not confirmed here for the Income-tax Act, 2025. Verify them against the current Finance Act, 2026 table before use.
Disabled dependant: As under the earlier provision (section 80DD of the 1961 Act), dependant with 40% or more disability: ₹75,000. Severe (80% or more): ₹1,25,000; Claimed by a resident individual or HUF who bears the maintenance cost or pays into a notified scheme. Fixed amount. Not allowed if the dependant himself claims the disability deduction. These are the earlier-provision figures and are not confirmed here for the Income-tax Act, 2025. Verify them against the current Finance Act, 2026 table before use.
Specified disease treatment: Deduction = lower of (actual expenditure − insurance or other reimbursement) and the limit. Limit (as under the earlier provision): ₹40,000; ₹1,00,000 if the patient is a senior citizen (60 or more years); For self or a dependant. Resident individual or HUF. For an HUF, the patient must be a member of the HUF. The senior citizen limit applies by reference to the patient's age. Prescription or certificate from a specialist is required. These limits are the earlier-provision figures and are not confirmed here for the Income-tax Act, 2025 as amended by the Finance Act, 2026. Confirm them against the current table before using them.
Savings account interest: As under the earlier provision (section 80TTA of the 1961 Act), deduction = lower of interest on savings accounts and ₹10,000; Individual or HUF. Only savings account interest from bank, co-operative bank or post office. Under the earlier provisions, a resident senior citizen could not claim it and claimed the senior citizen deduction (section 80TTB) instead, while a non-resident senior citizen was not barred. Confirm this and the limit against the Income-tax Act, 2025 before treating them as settled.
Senior citizen deposit interest: As under the earlier provision (section 80TTB of the 1961 Act), deduction = lower of interest on deposits with bank, co-operative bank or post office and ₹50,000; Available only to a resident senior citizen (60 or more years). Covers savings and fixed deposit interest. Company deposit interest is excluded. The limit is the earlier-provision figure. Verify it against the current table before use.
Overall cap: Total deductions ≤ gross total income (excluding income taxed at special rates such as section 111A STCG and LTCG); Apply the cap after summing all eligible deductions. No deduction is allowed against special-rate income.

How to solve Deductions for Specified Persons and Individuals questions

Use the same sequence for every question. It stops you from missing a condition, which is where marks are lost.

1Identify the assessee: individual or HUF, resident or not, age on the relevant date, and whether the new concessional regime was chosen.
2List each possible deduction: self disability, dependant disability, specified disease, savings interest, senior citizen interest.
3For each, check the conditions: relationship or dependency, disability percentage, certificate or prescription, type of deposit.
4Work out the amount. Fixed deductions: pick the 40% or the 80% level. Expense-based: actual amount less reimbursement, compared with the limit.
5For interest, add only qualifying interest, then compare with the limit. Keep non-qualifying interest in income.
6Check mutual exclusions, such as the dependant claiming for himself or a resident senior citizen being barred from the savings account deduction.
7Add the deductions and compare with gross total income, excluding any special-rate income. Deduct the lower amount and state the total income.

Quickest way: Four-question filter

When to use it: Use for MCQs and short case scenarios where you must pick the deduction in under two minutes.

Who is the claimant: resident individual, HUF, or senior citizen? A non-resident fails most claims.
Is the amount fixed or expense-based? Disability is fixed, disease treatment is expense-based.
What is the level: 40% or 80% for disability, below 60 or 60 and above for disease treatment and interest?
What cuts it down: reimbursement, the interest ceiling, or the cap at gross total income (excluding special-rate income)?

Common mistakes in Deductions for Specified Persons and Individuals

Limiting the disability deduction to the amount actually spent
Students mix it up with the specified disease deduction, which is expense-based.
Fix: For self disability and disabled dependant, the deduction is fixed. Give ₹75,000 or ₹1,25,000 even if the spending is lower.
Not reducing treatment expenditure by insurance or employer reimbursement
The question gives the total bill first and the reimbursement in a later line.
Fix: Always compute net expenditure first, then compare with the limit.
Letting both the dependant and the supporting person claim for the same disability
Both conditions look satisfied separately.
Fix: If the dependant claims the self-disability deduction, the supporter cannot claim for that dependant.
Including interest on company deposits or bonds in the senior citizen interest deduction
Students treat all interest of a senior citizen as eligible.
Fix: Only deposits with banks, co-operative banks and post offices qualify. The rest stays fully taxable.
Giving the savings account deduction and the senior citizen deduction together
Both deal with interest, so students add the two limits.
Fix: A resident senior citizen claims the senior citizen deduction only and cannot claim the savings account deduction. Use the savings account deduction for non-seniors.
Claiming deductions against special-rate income such as STCG under section 111A
Students deduct from the full gross total income without separating special-rate income.
Fix: Exclude special-rate income before applying the cap. Deductions reduce only income taxed at normal rates.
Applying these deductions under the new concessional regime
The regime is mentioned in passing and missed.
Fix: Read the regime first. If the assessee has opted for the new concessional regime, these deductions are generally not allowed.

Worked examples

Example 1

Assume the earlier-provision limits apply: ₹75,000 for disability of 40% or more, ₹1,25,000 for severe disability, ₹40,000 or ₹1,00,000 (senior citizen patient) for specified disease treatment, and ₹10,000 for savings account interest. Meera, a resident aged 45, has gross total income of ₹9,00,000 (including ₹12,000 savings account interest), all taxed at normal rates, and follows the regular regime. Her son, who depends on her, has a certified 50% disability, and she spent ₹30,000 on his maintenance. Her resident father, aged 72, who depends on her, had specified disease treatment costing ₹55,000 (specialist prescription obtained), of which the insurer reimbursed ₹10,000. Compute her total income.

Show the solution

Son's disability is 50%. It is 40% or more but below 80%, so the fixed deduction is ₹75,000 on the assumed limit. The ₹30,000 actual spend does not matter.
Father's treatment: net expenditure = ₹55,000 − ₹10,000 = ₹45,000. He is a senior citizen, so the assumed limit is ₹1,00,000. Deduction = lower = ₹45,000.
Savings interest: lower of ₹12,000 and the assumed limit of ₹10,000 = ₹10,000.
Total deductions = ₹75,000 + ₹45,000 + ₹10,000 = ₹1,30,000. There is no special-rate income, and the total is below gross total income, so no cap applies.
Total income = ₹9,00,000 − ₹1,30,000 = ₹7,70,000.

Answer: On the assumed earlier-provision limits, total deductions are ₹1,30,000 and total income is ₹7,70,000. The answer holds only if these limits are confirmed for the Income-tax Act, 2025 as amended by the Finance Act, 2026.

Example 2

Assume the earlier-provision figures apply: ₹1,25,000 for severe disability and ₹50,000 as the senior citizen deposit interest limit. Mr. Rao, a resident aged 64, follows the regular regime and has a certified 85% disability. His income is taxable pension of ₹4,00,000, savings account interest of ₹18,000, bank fixed deposit interest of ₹62,000 and company deposit interest of ₹20,000. All of it is taxed at normal rates. Compute his total income.

Show the solution

Gross total income = ₹4,00,000 + ₹18,000 + ₹62,000 + ₹20,000 = ₹5,00,000. There is no special-rate income, so the whole amount is available for deductions.
Disability is 80% or more, so it is severe. Deduction for self disability = ₹1,25,000 (fixed, on the assumed figure).
Qualifying interest for the senior citizen deduction = ₹18,000 + ₹62,000 = ₹80,000. Company deposit interest of ₹20,000 does not qualify.
Deduction = lower of ₹80,000 and the assumed limit of ₹50,000 = ₹50,000. The savings account deduction is not claimed because he is a resident senior citizen.
Total deductions = ₹1,25,000 + ₹50,000 = ₹1,75,000, which is below gross total income.
Total income = ₹5,00,000 − ₹1,75,000 = ₹3,25,000.

Answer: On the assumed earlier-provision figures, total deductions are ₹1,75,000 and total income is ₹3,25,000. Verify the figures against the current table before relying on this answer.

Exam tips

In case scenarios, underline the age, disability percentage, relationship and regime. These four facts decide almost every answer.
Write the condition in one line before the amount, for example: resident individual, certificate obtained, 80% or more, so ₹1,25,000. This earns method marks even if the amount is wrong.
For the MCQ part, watch the trap options: actual spend used for a fixed deduction, or reimbursement not deducted.
Check whether the question includes special-rate income such as STCG under section 111A. No deduction is allowed against it.
Always close with the cap check against gross total income, and state the total income clearly.
Learn the amounts from the current table of the Income-tax Act, 2025 as amended by the Finance Act, 2026, because limits are often tested directly.

Practice questions from Deductions from Gross Total Income

Deductions for Specified Persons and Individuals in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Deductions for Specified Persons and Individuals: frequently asked questions

Do I get the disability deduction if I spend less than the fixed amount?

Yes. For the person with disability and for the disabled dependant, the deduction is a fixed amount. It depends on the disability level and the certificate, not on the actual spend.

Can a senior citizen claim the savings account interest deduction?

Under the earlier provisions (sections 80TTA and 80TTB of the 1961 Act), a resident senior citizen could not. They claimed the senior citizen deposit interest deduction instead. It covers savings and deposit interest from banks, co-operative banks and post offices, up to its higher limit. A non-resident senior citizen was not covered by that deduction, so they were not barred from the savings account deduction. Confirm this against the Income-tax Act, 2025 before treating it as settled.

Is the specified disease deduction reduced by medical insurance?

Yes. You take the expenditure actually incurred and reduce it by any amount received from an insurer or reimbursed by an employer. The balance is compared with the limit, and the lower figure is allowed.

How do I claim the deduction for a disabled dependant under the Income-tax Act, 2025?

You must be a resident individual or HUF who supports the dependant, and the dependant must hold a certificate of disability from the prescribed medical authority. Claim the fixed amount based on the disability level while filing the return. The dependant must not have claimed the deduction for himself.