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Query on Sec. 80U & 80DDB

Rishi (Manager) (44 Points)

18 January 2010

As a senior citizen, my father's pension was within the taxable limit for the past 3 years so he didn't file any tax returns.
Now he wants to spread over the pension arrears he received in 2009 to the past 3 years to minimize his tax liability on arrears.Obviously in which case his income for previous 3 years would go beyond the senior citizen limit.
Since he is also disabled for the past 4 years, can he avail of the deduction under Sec. 80U & 80DDB for the past 3 years corresponding to those years tax liability ?

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9 Replies

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 19 January 2010

Dear,

no need to file the revise retutn - u can claim the relief u/s 89 read with rule 21A.

sunil

Rishi (Manager) (44 Points)
Replied 19 January 2010

That's exactly what my question is.

1) He has not filed returns for last 3 years as his pension was below the senior citizen tax limits.

2) He wants to make use of Sec 89 & spread his arrears recd in 2009 over the past 3 years.

3) He is disabled for the past 4 years.

So, while spreading his arrears under Sec 89 his income for the past 3 years would become taxable.

Can he use deduction under Sec 80U & Sec 80DDB for the past 3 years also corresponding to those years tax liabilty while makin use of Sec 89 ?

sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 19 January 2010

DEAR RISHI

YOU CAN CLAIM DEDUCTION UNDER SECTION 80U AS UNDER

[Deduction in case of a person with disability.

80U. (1) In computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees :

Provided that where such individual is a person with severe disability, the provisions of this sub-section shall have effect as if for the words fifty thousand rupees, the words seventy-five thousand rupees had been substituted.

The following proviso shall be inserted after the existing proviso of sub-section (1) of section 80U by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :

Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words seventy-five thousand rupees, the words one lakh rupees had been substituted.

(2) Every individual claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed⁷², along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed :

Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed⁷², and a copy thereof is furnished along with the return of income under section 139.

⁷³[Explanation.For the purposes of this section,

(a) disability shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)⁷⁴, and includes autism, cerebral palsy and multiple disabilities referred to in clauses (a), (c) and (h) of section 2⁷⁵ of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);

(b) medical authority means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)⁷⁶, or such other medical authority as may, by notification, be specified by the Central Government for certifying autism, cerebral palsy, multiple disabilities, person with disability and severe disability referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)⁷⁷;

(c) person with disability means a person referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)⁷⁶, or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)⁷⁷;

(d) person with severe disability means

(i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996)⁷⁸; or

(ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999)⁷⁹.]]

AND PUT A CERTIFICATE FROM MEDICAL AUTHORITY AS PRESCRIBED UNDER SECTION 80U FOR FILLING WITH FIRST RETURN