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Deduction U/S section 80DD and 80DDB

Deepa (CA and CS Final B.Com University First) (195 Points)

27 December 2009

1.what is the difference between exemptions under 80DD and 80DDB.?

2.Can an assessee claim deduction under both the section if the dependent relative fulfils all conditions in both sections?

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(Guest)

The difference between exemptions under 80DD and 80DDB:

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1. ELIGIBLE ASSESSES FOR CLAIMING DEDUCTION US 80DD AND 80DDB ARE INDIVIDUAL/HUF(RESIDENT).

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2. ELIGIBLE PAYMENT FOR DEDUCTION U/S 80DD ARE EXP. INCURRED FOR MEDICAL TREATMENT, TRAINING OR REHABILITATION OF A DEPENDENT( BEING A PERSON WITH DISABILITY) AND AMOUNT PAID OR DEPOSITED UNDER A SCHEME FRAMED BY LIC/UTI AND APPROVED BY CBDT.

ELIGIBLE PAYMENT FOR DEDUCTION U/S 80DDB ARE EXP. ACTUALLY INCURRED FOR THE MEDICAL TREATMENT OF FOR SPECIFIED DISEASE OR AILMENT.

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3. DEDUCTION U/S 80DD SHALL BE FIXED DEDUCTION OF RS. 50000 IRRESPECTIVE OF ACTUAL EXP. AND WHERE SUCH PERSON IS A PERSON WITH SEVERE DISABILITY OVER 80% THEN FIXED DEDUCTION OF RS. 75000.

DEDUCTION U/S 80DDB SHALL BE EXP ACTUALLY INCURRED OR RS. 40000 WHICHEVER IS LESS. IN CASE OF SENIOR CITIZEN RS. 60000 OR ACTUAL EXP. WHICHEVER IS LESS.

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(Guest)

Can an assessee claim deduction under both the section if the dependent relative fulfils all conditions in both sections?

YES, THE ASSESSEE CAN DO THAT THING..............

1 Like

Amir (Learner) (4016 Points)
Replied 27 December 2009

Agree with Depesh

1 Like

Deepa (CA and CS Final B.Com University First) (195 Points)
Replied 27 December 2009

Thank you:-)

The assessee can claim deductions under both sections.

can the same be supported with the act or any case law?

CA Manasa (CA) (1479 Points)
Replied 28 December 2009

Agree with Deepesh.

RD Verma (CA. Student) (314 Points)
Replied 28 December 2009

I Agree with Depesh.

Vikram Gagneja (a/c) (108 Points)
Replied 28 December 2009

i agree with dipesh

Jayashree (Accounts Manager) (42 Points)
Replied 09 April 2010

Specified diseases and ailments for the purpose of deduction under section 80DDB.

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,

(a) Dementia ;

(b) Dystonia Musculorum Deformans ;

(d) Ataxia ;

(e) Chorea ;

(f) Hemiballismus ;

(g) Aphasia ;

(h) Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

(i) Hemophilia ;

(ii) Thalassaemia.

On the Basic of facts given by you ,you are eligible to for deduction of Rs 40000 only.Enhanced Limit of 60000 is available if dependent /patient is senior citizen (attain age 65 in previous year ) not assesse who is is claiming the deduction.in your case your age is 66 ,However your wife's age is just 60 ,so you are eligible for only 40000 deduction or expenses incurred which ever is less.

Moreover the above said amount will be reduced by the amount reimbursed by employer/Insurance company .In your case this is nil.so you will get 40000 or expenses incurred ,which ever is less as deduction u/s 80DDB of the Income Tax Act.

Read more: https://www.simpletaxindia.org/2009/01/deduction-us-80ddb-in-respect-of.html#ixzz0kawdBPr3
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