N KRISHNA CHAITANYA (CA Student) (101 Points)
24 November 2010AS PER SEC80DD THERE IS A STANDARD DEDUCTION OF 50,000/- FOR ASSESSEE FOR THE MEDICAL TREATMENT FOR DEPENDANT WITH DISABLITY
MY QUESTION IS ---- IF THE ASSESSEE HAS TWO DEPPENDANTS ON HIM THEN THE AMOUNT QUALIFIED FOR DEDUCTION FROM HIS INCOME IS WHAT?????
IS IT 50,000/- OR 1,00,000/-( i.e 50,000/- EACH ) REPLY ME AS EARLY AS POSSIBLE
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 24 November 2010
As per defination of dependent u/d 80DD
"The term dependant here refers to parents, spouse, children and siblings who are dependant on an individual for maintenance and other basic needs. This form of deduction is also applicable to Hindu Undivided Families (HUF)."
Same deduction is available for all disabled dependents as Rs. 50000/- per dependent
M .K. Jha
(CA Final)
(484 Points)
Replied 24 November 2010
| Originally posted by : PAWAN | ||
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As per defination of dependent u/d 80DD "The term dependant here refers to parents, spouse, children and siblings who are dependant on an individual for maintenance and other basic needs. This form of deduction is also applicable to Hindu Undivided Families (HUF)." Same deduction is available for all disabled dependents as Rs. 50000/- per dependent |
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Deduction will be allowable Per disabled dependent....
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 24 November 2010
[Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.
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 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:
Provided that where such dependant is a person with severe disability, the provisions of this sub-section shall have effect as if for the words “fifty thousand rupees”, the words [“one hundred thousand rupees”] had been substituted.
(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely:—
(a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscripttion to the scheme has been made;
(b) the assessee nominates either the dependant, being a person with disability, or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.
(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2), an amount equal to the amount paid or deposited under clause (b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.
(4) The assessee, claiming a deduction under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed:
Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income.
Explanation.—For the purposes of this section,—
(a) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
(b) “dependant” means—
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family,
dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year;
(c) “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)[and includes “autism”, “cerebral palsy” and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
(d) “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub-section (8) of section 88;
(e) “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
(f) “person with disability” means a person as referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)];
[(g) “person with severe disability” means—
(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or
(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);]
(h) “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002).]
In my opinion, the amount deductible is a fixed amunt of Rs. 50,000/- whenever the conditions specified above are satisfied.
Therefore, in my opinion it is not per person basis.
CA. ROHIT GUPTA
(Service)
(133 Points)
Replied 25 November 2010
yup.
its 50,000 only, not 50,000 per disabled dependent
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 25 November 2010
dependant” means—
(i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu undivided family.
But if we go for defination of Individual it is children, parents, brithers and sisters. and it may fixed Rs. 50000/- per disbale individual
Rahul Agarwal
(Future CA)
(217 Points)
Replied 25 November 2010
Dear Krishna,
Mr. Ankur Srivastava is absolutely right.
So go to the following Link and you would be able to get all your answers for sure.
https://www.raagvamdatt.com/Have-a-disabled-dependent-save-income-tax-using-section-80DD/205/
rajesh
(Audit and Assurance)
(122 Points)
Replied 25 November 2010
it is restricted upto single deduction only. not on per person basis.
CA Mudit Agarwal PGDFM,MCP,IFR
(Dy. Manager (Taxation))
(289 Points)
Replied 25 November 2010
Mr. Ankur is right.
Deduction of Rs. 50000 is fixed.
It is not on per person basis.......
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 25 November 2010
ya agree with mr ankur
CAclubindia
