interesting....!!!

well clarified by Tarun.agreed.

thanks all of u

bt this is practical case for me

n i have been claimed deduction of Rs. 1 lac Severe disability

so plz clarify

Dear Gopal,

I have now posted this matter in Expert Query forum. Lets see their opinion. I wish we get answer from more than just 1 expert.
 

Agree with Tarun

Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,

(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

(b) paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,

the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year:”

Thus there is no provision in the I T Act that the claim of deuction u/s80 DD shall be subject to limitation to the extent of actual payment.

Compare it with the section 80DDB which also gives reliefs to the assessee for expense on his dependents suffering from Specific diseses . In that Section deduction is subject to limitation . Read the excerpts below :

“Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules made in this behalf by the Board

(a) for himself or a dependant, in case the assessee is an individual; or

(b) for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid“

Ref: https://taxworry.com/claimed-dedcution-us-80-dd-of-rs-50000-a-o-says-deduction-shall-be-allowed-only-for-expense-for-which-i-show-proof-is-he-right/

Ref: https://taxworry.com/is-proof-of-expenditure-must-for-claiming-deduction-us-80dd/

Go through the circular also in above link

Thank You Roopali for all your research link , consistency  & interest shown.

I want to claim Rs. 1 lakh deduction for the client but I am not getting a solid reason. Now just see , comparing 80 DD with 80 DDB  won't stand in A.O. assessment. He will disregard argument of compairing language of 2 different sections.

Also the circular 775 regarding TDS - it says claimant has to make a signed declaration certifying amount of actual expenditure allthough proof is not required. So in fact the words "actual expenditure" are used. How can claimant make such a declaration if he cannot prove it with supporting bills ? Further, this circular , like some others, is only relating for convenience of TDS deductors & deductees ( just like rent receipts)  Claimant will have to prove actual expenditure in Scrutiny assessment.

May be some circular, ammendment or Case law alone will solve the controversy.

so what is the final result 

mijhe return revise karni chahiye kya ????

1)In my articleship also I have been claiming such. Once you say prove from bare act, when proved now you want case law which i tried but couldnt find. And since it is so clearly stated 75000 and for severe 1lac i doubt if i will get one so urgently.

2)"because the kind of expenditure one spends in maintenance of a disable person , one can not get either all the documentary proof of expense." words from the given link is the most important reason for this deduction irrespective of actual expenditure

3)" Actual"  word is very meaningful used in our bare act more oftenly which is not used in this section

4)"incurred any expenditure" here is for assessee. In 80U being oneself handicap is sufficient. In 80DD having dependent handicap is not sufficient. Assessee need to incur some expenditure. assessee just claiming and not caring will not get it.

5)You wanted expert opinion from cci: Plz ref: /experts/sec-80dd-80ddb-132581.asp

Now this is my study and opinion. I will be happy to know case laws on it

Thank You Roopali  once again ! I really admire your efforts & sincerity. You have been amazing with your contributions throughout. Great patience too !

Yes, this Circular No. 702 seems to be most convincing amongst all other arguments presented by You. Lets see. I will try to convince my boss with this circular & try to get full deduction & save tax of Rs. 10,000/-
 

The amount deductible is a fixed deduction of Rs. 50,000, irrespective of the amount incurred of deposited under both option.

Hence it is clear that deduction available fixed 50,000 not on expenses incurred.

Deduction of 80DD of rs 50000 & 100000 is available irrespectve of the actual expenditure.......

Originally posted by : Amol
	Thank You Roopali  once again ! I really admire your efforts & sincerity. You have been amazing with your contributions throughout. Great patience too ! Yes, this Circular No. 702 seems to be most convincing amongst all other arguments presented by You. Lets see. I will try to convince my boss with this circular & try to get full deduction & save tax of10,000/-

Welcome