23 February 2013
For the purpose of section 80DD Dependent means: 1) In the case of an individual, the spouse, children, parents,brothers and sisters of the individual
2) In the case of Hindu Undivided Family, a member of the Hindu Undivided Family.
So according to the above meaning Grand son doesn't consider as dependent(as per 1 above). In case such grand fathers status is HUF and such grand son is also member of such HUF then such grand son shall claim such exemption u/s80DD under the status of HUF but not under the status of Individual.
And according to the section 80DD a flat deducction of Rs 50000(in case of several disability it is Rs.100000) allowable irrespective of expenditure incurred on such depended either by way of cash or bank or not incurred any expenditure.
CAclubindia
