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section 80DDB

169 views 4 replies

Piyush Sindwani

96 Points Joined July 2016

as per the section the deduction provided is rs 40000 or actual exp which ever is less
For example:-
X has spend rs 47000 for which 45000 has been received from insurance company. Now will he get 2000 (45000 -43000) as deduction. Or initially he will get rs 40000( 45000 or 40000 which ever is less) as deduction, but when insurance amount received than deduction will now be treated his income.

Please anyone explain
thanks in advance

Replies (4)

Ashiwini Ballodia

Managing Partner at TAXounting

8742 Points Joined November 2013

As per me it is lower of:
1) Rs.40000 - Insurance Claim (Subject to maximum of 40000)
2) Actual Expense - Insurance Claim

So from the above we can conclude that you are not elegible for 80DDB

Opnion of others are also most welcome

Ashiwini Ballodia

Managing Partner at TAXounting

8742 Points Joined November 2013

Trilochan mohapatra

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249 Points Joined September 2013

Ya the above answer is right .We can explain in an alternate way that
1st take the lower of 40,000 or actual exp
then deduct the insurance claim received.