Conditions to Claim Deduction u/s. 80DD for Dependent under Handicapped.

Deduction under section 80DD, in this regard the Income Tax Department put the following conditions to claim Deductions under section 80DD of Medical Treatment Handicapped dependent which are as under:

Eligible Taxpayers to whom deduction is Available :
This deduction can be claimed By Resident Individual/HUF.  He may be ordinary resident Indian or Not ordinary resident Indian. He may be foreign citizen or Indian citizen. However Non resident can not claim this deduction.

Options :
Taxpayer may have done any (or both) of following options-
 The taxpayer has incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant; or 
 Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme,

Amount of deduction :

 A deduction of Rs 50,000 is available. The amount of deduction is fixed irrespective of the amount deposited under option 2.1 or 2.2 as above. Where the depandant is with a severe disability, a deduction of Rs 1,00,000 is allowed. ( Rs 75000/- up to AY 2009-10)

Death of the defendant occurs before that of the assessee:
If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.

Certificate :
An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed,However as per new rule 12 no document is to be attached with Income tax return .

Dependent Meaning :
The term 'dependent' here refers to -
 For Individual: the spouse, children, parents and siblings(brother,Sister) of the assessee who are dependant on him for maintenance.
 For HUF : menber of  HUF  who are dependent on him for maintenance

Depended claim of 80U :

Further Dependent themselves haven't claimed a deduction for the disability under section 80U in computing their total incomes.

Disability :
Normal disability not less than 40 % and severe disability means more than and equal to 80 %.


Post a Comment