Whether deduction u/s 80dd available

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Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 Dear Sir/Madam,

If a father incurs expenses other than medical expenses on his handicapped daughter who is dependent on him, whether this expenses are eligible for deduction u/s 80DD of the Income Tax Act?

Thanks.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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17 June 2017 First thing is that Ded u/s 80DD is not based on actual expenses. Deduction equal to 75000 or 100000 directly allowed based on disability. However it is required that medical expenses incurred in respect of handicapped dependent.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2017 Thanks. But please clarify whether deduction would still be available when the handicapped daughter is dependent on his father for her education and day to day expenses (other than medical expenses). She lives with his father.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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17 June 2017 No you cant claim deduction.

What kind of expenses qualify for deduction?

1.Any expenditure made towards medical treatment, nursing, training, rehabilitation of a dependent person with disability.
2.Any amount paid as premium for a specific insurance policy designed for such cases. The policy must satisfy the conditions mentioned in the law.
3.If the disabled dependent predeceases the person claiming deduction under this section, then an amount equal to the amount of premium paid shall be considered to be the income of the claimer for previous year (i.e., the year in which such amount is received by the claimer / assessee) and shall be chargeable to tax.

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2017 Thank you so much for the valuable guidance.

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