I WANT A CLARIFICATION REGARDING REBATE U/S 80DD WHICH SAYS THAT REBATE ON THE EXPENDITURE INCURED ON HANDICAP DPENDENT. BUT ONE OF INCOME TAX CIRCULAR SAYS I QUOTE-
The Board has received several representations seeking clarification regarding the quantum of deduction available in relation to the expenditure incurred on the handicapped dependants.
3. It is hereby clarified that the deduction under section 80DD of the Income-tax Act, 1961 is statutory in nature. Therefore, as long as the conditions mentioned in the section are fulfilled, and the assessee has incurred any expenditure on medical treatment, etc., of the handicapped person, the deduction as envisaged in the section will be allowable in full.
Therefore, DDOs may not insist upon production of vouchers/bills by the employees for having incurred expenditure on medical treatment of their handicapped dependants for allowing the deduction under section 80DD for the purpose of computing tax deductible at source.Circular : No. 702, dated 3-4-1995.
THIS MEAN IF A PERSON HAS SPENT RS 100 ON HANDICAP DEPENDENT HE IS ENTITLED TO GET FULL REBATE OF Rs 1 LAKHS ON SEVERELY HANDICAP DEPENDENT.AND HE NEED NOT TO SHOW THE RECIEPT TO HIS DDO.?PLEASE CLARIFY??
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