80 dd
Querist :
Anonymous
(Querist) 13 January 2012
This query is : Resolved
I am a salaried person, my Daughter is 90% multiple disabilities, My employer does not give me the benefit of 80DD ,He wants the proof of expenditure, I have no any proof, I have only certificate from Haji Ali hospital, can I get the benefit of 80DD? Can I get the benefit In IT Return?Pls . Help me.
prabhakar singh
(Expert) 13 January 2012
Your employer is wrong as on 80 % or more section 80 DD applies for which no proof of expenditure is required at all and exemption has to be given.Ask the DDO where is the circular requiring proof of expenditure????
A V Vishal
(Expert) 13 January 2012
Section 80DD for Medical Treatment of Handicapped Dependents
If you are incurring expenditure for the treatment of your handicapped dependent, you could claim a deduction under section 80DD.
Available Deduction - Rs 50000, or actual expenditure incurred, whichever is lesser. For severe handicap conditions Rs. 1,00,000 is the deduction limit.
Scope of Deduction - Deduction can be claimed for dependent parents, spouse, children and siblings. Dependents must not have claimed any deduction for their disability.
Deductions are permissible in either of the following cases.
a) Costs incurred for medical treatment, training or rehabilitation of a disabled dependent, including amount spent for nursing.
b) Amount paid towards an insurance scheme for the maintenance of your disabled dependent in case of your untimely death.
Meaning of Disability- Disability means a person suffering from 40% or more of any of the below disabilities. A severe disability condition is 80% or more of the disabilities.
a) Blindness and Vision problems
b) Leprosy-cured
c) Hearing impairment
d) Locomotor disability
e) Mental retardation or illness
Key factors
a) Individuals would need to produce a copy of the disability certificate as issued by the central or state government medical board to claim deduction.
b) Insurance policy obtained must be in your name and should be a policy for life. It could pay either an annuity or a lump sum amount for the benefit of the dependent on your death.
c) If the disabled dependent predeceases you, the policy amount is returned to you, and treated as income for the year in which you receive it, thus fully taxable in your hands.
A V Vishal
(Expert) 13 January 2012
Whether it would be sufficient if the employee furnishes a medical certificate from a Government Hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handicapped dependent and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI
1. Section 80DD, substituted for sections 80DD and 80DDA by the Finance (No. 2) Act, 1998, lays down that the deduction on acÂcount of expenditure incurred by way of medical treatment (inÂcluding nursing), training and rehabilitation of a handicapped dependant or amount paid or deposited in specified schemes of Life Insurance Corporation or Unit Trust of India for the mainteÂnance of handicapped dependant, shall be limited to Rs. 40,000 in the aggregate while computing the total income of the parent or the guardian of such handicapped dependant.
2. It has come to the notice of the Board that some of the DDOs are asking the employees to submit medical vouchers/bills in connection with the expenses incurred on the medical treatment of their handicapped dependant apart from a certificate from the Government hospital regarding the permanent physical disability or mental retardation of the handicapped dependant.
3. It is clarified that it would be sufficient if the employee furnishes a medical certificate from a Government hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handiÂcapped dependant and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI. 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.
4. This clarification is applicable for the purpose of Tax DeducÂtion at Source from salaries under section 192 of Income-tax Act, 1961 during the Financial year 1998-99 and onwards.
Circular : No. 775, dated 26-3-1999.
prabhakar singh
(Expert) 14 January 2012
All said all good,i want to ask you MR. vSHAL ,are you in disagreement with me ????
Raj Kumar Makkad
(Expert) 14 January 2012
Nothing remains to be added in the wise reply of both the senior experts.
Raj Kumar Makkad
(Expert) 14 January 2012
Prabhakar Singh ji! Your question to vishal is not understandable. Can you clear it for all of us because this has been raised here not in PM?
prabhakar singh
(Expert) 14 January 2012
Dear Mr. Makkad i am of the view that no bill voucher of expenditure is required for claiming the exemption.
Sailesh Kumar Shah
(Expert) 14 January 2012
Agree! No scope has been left by expert Mr.Vishal particularly to add more. Mr.Prabhakar singh also rightly opinion.
Raj Kumar Makkad
(Expert) 14 January 2012
Prabhakar Singh ji! Your view is absolutely correct but still your question asked from vishal has not come out.
Deepak Nair
(Expert) 14 January 2012
Hope the querist is satisfied.
Any ways, I could learn something new.
Thanks to Mr. Vishal & prabhakar Sir.
A V Vishal
(Expert) 14 January 2012
It is clarified that it would be sufficient if the employee furnishes a medical certificate from a Government hospital and a declaration in writing duly signed by the claimant certifying the actual amount of expenditure on account of medical treatment (including nursing) training and rehabilitation of the handiÂcapped dependant and receipt/acknowledgement for the amount paid or deposited in the specified schemes of LIC or UTI. 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.
Devajyoti Barman
(Expert) 14 January 2012
Now the query is resolved from every aspect.
M/s. Y-not legal services
(Expert) 15 January 2012
nice job by mr.vishal.,
prabhakar sir., your view also correct only.,
-tom-
Deepak Nair
(Expert) 16 January 2012
Thanks a lot once again to Mr.Vishal and Prabhakar sir
