24 October 2012
The benefit under section 80DD (and also Section 80 DDB ) of Income Tax Act is avaiable only if the the person incurring the expenditure incurs it for hiself or a person dependent on him. Dependent under this Section means the spouse, childeren, parents and brother ans sister of the said individual. Grand Parents are not covered.
The intentention of the legislature seems to be clear that Grand Parents will not be covered by this Section. It seems this is the reason why the word Dependent Relative has not been used. Relative has a much wider meaning. Under Section 2(41) relative in case of an individual means the husband, wife,brother or sister or any lineal ascendent or decendent of that individual. This in this defination individuals are covered.
Accordingly benefit will not be allowed to you in respect of expenditure incurred by you for your Grand Parents, though there is a strong case that it should be allowed.
However, if your Grand Parents have an independent income which is taxable, you can explore the posibilty of getting them benefit of Section 80U. On the other hand if your father or mother incur this expenditure for their respective parents, they will be entitled to this benefit.
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