Wednesday, 15 June 2016

Taxes : Claim for deduction under 80DDB

Who can claim a deduction under section 80DD?

As per Section 80 Deductions,Tax Saving
Deduction under section 80DD of the income tax act is allowed to Resident Individuals or HUFs for a dependant

-who is differently abled and

– is wholly dependent on the individual (or HUF) for support & maintainance.

Below are the conditions you must meet to avail this deduction –

#Deduction is allowed for a dependant of the tax payer and not the tax payer himself.

#The taxpayer is not allowed this deduction if the dependant has claimed a deduction under section 80U for himself/herself.

#Dependant in case of an individual taxpayer means spouse, children, parents, brothers & sisters of the taxpayer.

#In case of an HUF means a member of the HUF.The taxpayer has incurred expenses for medical treatment (including nursing), training & rehabilitation of the differently abled dependant or the tax payer may have deposited in a scheme of LIC or another insurer for maintenance of the dependant

#Disability of the dependant is not less than 40%.Disability is as defined under section 2(i) of the Persons of Disabilities Act, 1995

When the above conditions are met amount of deduction allowed is –

Rs 50,000 (in financial year 2014-15) where disability is more than 40% and less than 80%Rs 1,00,000 (in financial year 2014-15)

where disability is more than 80%These deductions are allowed irrespective of your actual expenditure.

Do note that starting financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000.

For more on this...

As a parent what do you need to do??

> Contact your local govt hospital. For eg, Sassoon in Pune.
> Apply for and get the Disability certificate.

> send the disability certificate along with 80DDB details to your CA or the finance department if salaried.

The deduction will be applicable according to the % disability mentioned on the disability certificate.

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