INCOME TAX
omprakas hjoshi
(Querist) 29 September 2013
This query is : Resolved
Sir I am a govt employee . My son is hearing impaired with 100% hearing loss. He is totally deaf and dumb. I have a medical certificate of 100% disability. Can i claim for income tax rebate? How much? Under which section? What documents /certificate. I have to produce to my office pls guide...
P. Venu
(Expert) 29 September 2013
There is no rebate or deduction as such. However, the assessee is entitled for deduction of Rs.50000/- towards expenditure incurred in medical treatment, training and rehabilitation of any person with disability and Rs.100000/- in case of severe disability.
Medical Certificate from a competent medical officer in a Government hospital is required to be produced.
Please see 80 DD
Rajendra K Goyal
(Expert) 29 September 2013
Some extract taken from net:
Deduction u/s. 80DD for expenses on maintenance/ medical treatment of disabled dependent
i) Expenditure for the medical treatment (including nursing), training and rehabilitation of a disabled dependent.
ii) Money paid to Life Insurance Corporation (LIC), Unit Trust of India or any other insurer for the purpose of buying specified scheme or insurance for the purpose of maintenance of such dependent.
iii) For individuals, your spouse, son / daughter (any child), parents and brother / sister (siblings) can be your handicapped dependents. For HUFs, any member of the HUF can be a disabled dependent. The disabled person should be wholly or mainly dependent on you for his / her support and maintenance, and should not have claimed deduction under section 80U.
iv) Not all schemes qualify – there are specific schemes meant for this purpose. The policy has to insure your life. i.e. it should be in your name. Premium is required to be paid on annual basis or a lump sum amount for the benefit of the disabled dependent.
v) Nomination of Policy should be in the name of (a) your disabled dependant, or (b) any other person or trust that would receive the money for the benefit of your disabled dependent
vi) Disability would be as defined under clause (i) of section 2 by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”. A person with disability means a person suffering from not less than 40% of any of the above disabilities. Severe disability means 80% or more of one or more of the above disabilities.
Vii) The deduction allowed is Rs. 50,000 if disabled dependant is not suffering from severe disability. • Deduction allowed goes up to Rs. 1,00,000 if disabled dependent is a person with severe disability. Deduction not depend on amount of expenses incurred:- Even if your actual expenses on above mentioned disabled dependant relative is less then amount mentioned above you will be eligible to full deduction.
518. Whether, as long as conditions mentioned in section 80DD are ful¬filled and assessee has incurred any expenditure on medical treatment, etc., of handicapped person, deduction as envisaged in section 80DD will be allowable in full
1. Under the provisions of section 80DD of the Income-tax Act, 1961, an assessee who is resident in India being an individual or a Hindu undivided family is allowed a deduction of Rs. 15,000 for expenditure incurred in respect of handicapped dependants subject to the following conditions :—
(i) the handicapped dependant is a relative of the assessee and is not dependant on any person other than the assessee for his support or maintenance;
(ii) he is suffering from a permanent physical disability (including blindness) or mental retardation and the same is certified by a Physician, Psychiatrist, etc., working in Govern-ment hospital;
(iii) the disability has the effect of reducing consid¬erably such person’s capacity for normal work or engaging in a gainful employment or occupation;
(iv) the assessee has incurred any expenditure for medical treatment (including nursing), training and rehabilitation of the handicapped dependant.
2. The Board has received several representations seeking clari¬fication 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 treat¬ment, etc., of the handicapped person, the deduction as envisaged in the section will be allowable in full.
Circular : No. 702, dated 3-4-1995.
519. 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 ac¬count of expenditure incurred by way of medical treatment (in¬cluding 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 mainte¬nance 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 handi¬capped 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 Deduc¬tion 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.
Raj Kumar Makkad
(Expert) 29 September 2013
Well advised by experts so no more to add.
V R SHROFF
(Expert) 29 September 2013
Deduction u/s. 80DD for expenses on maintenance/ medical treatment of disabled dependeNT: 50K
YOPUR DISTRICT REHABILATION CENTRE OR dIST gOVT hOSPITAL sURGEON'S CERTIFICATE REQD.
R.K Nanda
(Expert) 29 September 2013
NOTHING TO ADD MORE.
omprakas hjoshi
(Querist) 20 February 2014
Thanks a lot to all experts
but sir my DDO is dening to give rebate of 100000. he is insisting me to produce medical bill and vouchers showing that I have expend on my son. I have Disability certificate of 100% from Duly constituted medical board from a govt district hospital.
what can I do ? DDO is harrasing me by this and that way ....?
omprakas hjoshi
(Querist) 20 February 2014
Thanks a lot to all experts
but sir my DDO is dening to give rebate of 100000. he is insisting me to produce medical bill and vouchers showing that I have expend on my son. I have Disability certificate of 100% from Duly constituted medical board from a govt district hospital.
what can I do ? DDO is harrasing me by this and that way ....?
P. Venu
(Expert) 20 February 2014
Pl. take up the matter with the superior officers. You can also seek appropriate information under RTI.
