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What is meaning of dependent under IT act?

11 April 2011

Hi,

Whenever I read IT act one question that always comes in my mind is wahat is the meaning of Dependent childrean/ parents while interpretig any of the provision. Take the Example of section 80d wherein 15000 is allowed if premium is paid for medical insurance of dependent children..CAn anyone tell me as to how do u define a dependent children/parents/ person?Further what do u understand by whoolly or partly dependent

POssible alternatives which i can think of are :

1.If they r minor

2.If they are major but unemployed

3.THey r major, employed but suffering from disesases specified u/s 80U.

Pls tell me the correct meaning

waiting for ue reply

Thanks in advance.

Regrads,

Preeti Mehta

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10 Replies

CA Madhukiran Reddy (CHARTERED ACCOUNTANT) (12714 Points)
Replied 11 April 2011

As per my knowledge dependent children means the children who are solely dependent on assessee.

Also some sort of relationship is exist between them.

1 Like

MD (AAA) (117 Points)
Replied 12 April 2011

When ever the Income-tax Act has used the word "dependant", they have also define the same in sections through Explanation for example 80DD, 80DDB.

But section 80D has not define the word "dependant”.

So as per Rules of liberal interpretation the term dependant can have the same meaning as is defined u/s 80DDB

Section 80DDB defines as —

(a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

(b) in the case of a Hindu undivided family, a member of the Hindu undivided family,

dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

Arniv Sharda (CA Final) (3006 Points)
Replied 12 April 2011

Originally posted by : MD
	When ever the Income-tax Act has used the word "dependant", they have also define the same in sections through Explanation for example 80DD, 80DDB. But section 80D has not define the word "dependant”. So as per Rules of liberal interpretation the term dependant can have the same meaning as is defined u/s 80DDB Section 80DDB defines as — (a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them, (b) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

1 Like

CA CS Preeti Mehta (nil) (635 Points)
Replied 12 April 2011

Originally posted by : MD
	When ever the Income-tax Act has used the word "dependant", they have also define the same in sections through Explanation for example 80DD, 80DDB. But section 80D has not define the word "dependant”. So as per Rules of liberal interpretation the term dependant can have the same meaning as is defined u/s 80DDB Section 80DDB defines as — (a) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them, (b) in the case of a Hindu undivided family, a member of the Hindu undivided family, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

@ MD & Arniva,

U used the word dependent wholly or mainly on such individual in ur reply...My question is how do u identify as to whether a paerson is dependent wholly or partly or independent??I have gone through te whole act but never found the definition of dependent.Kindly elaborate.......

MD (AAA) (117 Points)
Replied 12 April 2011

Section 80DDB Explanation (i) defines the term dependant which is also referred in section 80D.

The word "mainly" used in this context has not been defined in the Income-tax Act, 1961.

The dictionary meaning of mainly is principally, primarily.

The Board had an occasion to consider the interpretation of the word "mainly" used in item 21 of the Ninth Schedule. Refer circular no.213 dated 14/3/1977 wherein the legal position was settled by stating that if activities (investment) is 51% or more than it is covered by the definition "mainly".

1 Like

V K D Menon (Retired) (21 Points)
Replied 12 June 2013

I'm sorry to say that people are misusing this forum just to pass their time. I read the posting originally made by MD and re-posted by several others to define the term "Dependant", citing Section 80DD. Section 80DD simply says that so and so are eligible for the benefit u/s 80DD, if they are wholly or mainly dependent on the assessee. There is no definition at all in the posting of MD.

I would suggest that instead of this forum, start a forum where people can ask their questions and ONLY experts give their answers.

I was searching CACLUB to find out the definition myself, but was confronted with such lumpen postings and still could not find the definition.

Thanks

V K D Menon

Meenakshi Pant (Student CA Final ) (21 Points)
Replied 03 August 2014

Sir,

Kindly, tell me the section under which the definition of Dependent children is covered under Income Tax Act, 1961.

yogesh kumar verma (Auditor) (80 Points)
Replied 20 February 2015

No defination under income tax dependent children

Tapas Sarkar (article) (22 Points)
Replied 17 July 2019

I think the word "dependent" will have to be explained on the basis of the facts and circumstances which may vary from case to case. Section 80DD/80DDB has simply given the identity of a person who could be regarded as dependent for a taxpayer by stating that "dependent in case of an individual taxpayer means spouse, children, parents, brothers & sisters of the taxpayer. In case of a HUF means a member of the HUF". Suppose your father is suffering from critical illness as defined in section 80DDB and you are incurring the whole or a part of the expenses for the treatment of your father. You will be allowed to claim deduction under this section, if the income of your father is not sufficient to cover such medical expenses as well as his day to day expenses. However, if it is found that the income of your father is enough to cover all his expenses (both medical as well as all other reasonable expenses for leading life) then the department may take a view that your father is not financially dependent on you and therefore you may not be allowed the deduction u/s 80DDB.