Jitendra Jhanwar (Officer) (129 Points)
09 April 2010Dear Friends,
Please help me for below questions:-
1) Can I adopt a Handicapped child with more than 80% Disability for his maintenance, and claim Deduction u/s 80DD?
2) What is the limit of Deduction in this section and is there any conditions for incurring expenses?
3) What is the procedure for adoption a child?
Tks & Rgds
Jitendra
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 09 April 2010
Section 80DD
Deduction under this section is available to an individual who:
A deduction of Rs 50,000 is available. Where the depandant is with a severe disability, a deduction of Rs 1,00,000 is allowed. (As per AY 2009-10)
If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.
An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed.
The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependant on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.
This deduction is also available to Hindu Undivided Families (HUF).
So u cnnt claim it on Adopted Child.
regards,
ratan
Jitendra Jhanwar
(Officer)
(129 Points)
Replied 09 April 2010
Dear Ratan,
As per Definition of Child in Income Tax it include Adopted Child.
Jitendra Jhanwar
(Officer)
(129 Points)
Replied 09 April 2010
Dear Ratan,
Please see the Defination of child in Income Tax Act:-
Section 2(15B) defines “child”, in relation to an individual, includes a stepchild and an adopted child of that individual. If stepchild and adopted child is child then it is not necessary that, in order to be a brother/sister, one should have the same parents.
CA KHAN AURANGZAIB
(ERP FINANCIAL CONSULTANT)
(85 Points)
Replied 09 April 2010
Benifit will be available also to dependent defined as per income tax.
Dependent means----
The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependant on
him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.
Children includes :- 'Adopted child"
Therefore you can take the benifit.
Raj Saxena (1412th Tiger)
(Struggling Student)
(272 Points)
Replied 09 April 2010
1. yes
2. 75k / 1lakh, No limit of expense but u hv to incurr some amount.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 10 April 2010
yes the definition of Child includes Step Child and an adopted child but on any ground it will not include an illegitimate child.So you can claim deduction on adopted child
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
