deduction

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Manomohan.M

Manomohan.M (Querist)
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23 March 2009 sir plz explain these two sections 80DD,80DDB

CA Pattanayak

CA Pattanayak (Expert)
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23 March 2009 Section 80DD AY 2008-09 and 2009-10)
Deduction under this section is available to an individual who:

Incurs any expenditure for the medical treatment (including nursing), training and rehabilitation of a disabled dependant; or
Deposits under any approved scheme of Life Insurance Corporation or any other insurer or the administrator any amount for the maintenance of a disabled dependant or for an annuity or a lump sum amount to be paid to the dependent or the nominee for the benefit of the dependent, in the event of the death of the individual depositing the money.

Under sections 80DD a deduction of Rs 50,000 is available. For the dependant with a severe disability (over 80 per cent), the deduction is Rs 75,000.

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. 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.

Section 80DDB

This deduction is available to and individual who is resident of India or HUF who, during the previous year, actually paid for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board for himself or a dependant relative (or any member of Hindu undivided family in case of HUF). The maximum amount of deduction is Rs. 40,000 or Rs. 60,000 (for senior citizen). The assessee must furnish a certificate in such form from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed, working in a government hospital.

(For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
(a) Dementia; (b) Dystopia Muscularity Deformans; (c) Motor Neuron Disease; (d) Ataxia; (e) Chorea; (f) Hemiballismus; (g) Aphasia; and (h) Parkinsons
Disease;
(ii) Malignant Cancers;
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS);
(iv) Chronic Renal failure;
(v) Hematological disorders:
(a) Hemophilia; (ii) Thalassaemia.)