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80dd

Uday Krishna Dussa (Article assistant) (59 Points)

18 December 2015

U/S 80DD WHETHER THE DEDUCTION HAVE BEEN ALLOWED BY PAYMENT BASIS OR IRRESPECTIVE OF ACTUAL EXPENDITURE INCURRED?

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4 Replies

Stranger (.) (5531 Points)
Replied 18 December 2015

Dear, deduction u/s-80DD is fixed at Rs.50,000/- (in case of dependent is a person with disability of 40% or more) &Rs.1,00,000/- (in case of dependent is a person with severe disability) irrespective of actual expenditure incurred by the assessee...

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Ankit Taprania (CA FINAL ) (542 Points)
Replied 18 December 2015

Agree, deduction is allowed irrespective of actual expenditure incurred by the assessee...

Deduction u/s 80DD :

for A.Y 2015-2016
person with disability - RS 50000
person with severe disability - RS 100000

for A.Y 2016-2017

person with disability - RS 75000
person with severe disability - RS 125000

Uday Krishna Dussa (Article assistant) (59 Points)
Replied 21 December 2015

But,I cheked in income tax utility it takes expenditure incurred or maximum amout based on disability which ever is lower.

Ankit Taprania (CA FINAL ) (542 Points)
Replied 21 December 2015

java utility will accept any amount below thershold limit but that does'nt mean that you have to claim expenditure on actual basis as section 80DD clearly specify it

80DD. (1) 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 subsection
(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:
Provided that where such dependant is a person with severe disability, the provisions of this subsection
shall have effect as if for the words “fifty thousand rupees”, the words 81[“one hundred
thousand rupees” ] had been substituted.