Deduction U/S section 80DD and 80DDB

Tax queries 9063 views 8 replies

Deepa

CA and CS Final B.Com University First

195 Points Joined October 2008

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?

Replies (8)

Guest

The difference between exemptions under 80DD and 80DDB:

----------------------------------------------------------------------------------

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

----------------------------------------------------------------------------------

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.

-----------------------------------------------------------------------------------

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.

-----------------------------------------------------------------------------------

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..............

Amir

Learner

4016 Points Joined December 2009

Agree with Depesh

Deepa

CA and CS Final B.Com University First

195 Points Joined October 2008

Thank you:-)

The assessee can claim deductions under both sections.

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

CA Manasa

1479 Points Joined November 2007

Agree with Deepesh.

RD Verma

CA. Student

314 Points Joined May 2009

I Agree with Depesh.

Vikram Gagneja

a/c

108 Points Joined May 2009

i agree with dipesh

Jayashree

Accounts Manager

42 Points Joined March 2008

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
Under Creative Commons License: Attribution