Sec 80DD and Sec 80 DDB

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a plain reading of explanation to Sec.80DD gives an idea that the deduction is allowed to the extent of the amount mentioned in that section only whether their are one or more of such persons as it says;

“dependant” means—

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

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

                      dependant wholly or mainly ........................"

the first clause says  " individual, ...........sisters "or "any of them" means either more than one or any one of the ones listed above.

and second clause says 'a member'.....

THAT MEANS THE DEDUCTION SHALL REMAIN TO THAT AMOUNT EVEN IF THEIR ARE MORE THAN ONE SUCH PERSONS.

SECONDLY I FULLY AGREE WITH UR VIEW THAT IN CASE OF MORE THAN ONE SUCH PEROSN, THE LIMMIT SHOULD APPLY TO ALL OF THEM SEPERATLY.....THOUGH I HVN'T ANY IDEA AS TO HOW THIS CAN BE BROUGHT ABOUT B4 AUTHORITIES.!!!!!!!!!!

its the overall limit

" 80DD.     (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,—

             (a)   incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

             (b)   paid or deposited any amount under a scheme framed in this behalf by the Life Insurance Corporation or any other insurer or the Administrator or the specified company subject to the conditions specified in sub-section (2) and approved by the Board in this behalf for the maintenance of a dependant, being a person with disability,

the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifty thousand rupees from his gross total income in respect of the previous year:

Provided that where such dependant 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 ^24a[“seventy-five thousand rupees”] had been substituted." (Presently Rs.1 lac)

The dependant list as defined in the act also talks about "any of them" and not "any one of them".

The Section talks about "a dependant" and hence, in my opinion, the deduction can be multiplied as many times as the dependants are.

I was claiming it for one of my clients earlier continuously for some years. When one of the officers' questioned it, the client was not bold enough to go for appeal.

When it was introduced long back (AY 91-92) the "Heading" of the Sec. talked about Dependants but now it talks about "a dependant". Still in my view, it is possible to claim multiple deductions and somebody has to be the torch bearer carrying further to Appeal stage.

It has to be argued that "a dependant" is eligible for Rs.50000/Rs.75000/Rs.100000 and if the dependants are more than one as many deductions are claimable"

" 80DDB. Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules³⁵ made in this behalf by the Board—

             (a)   for himself or a dependant, in case the assessee is an individual; or

             (b)   for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid "

The words "whichever is less" puts a ceiling on the deduction and hence it can not be more than Rs.40000/Rs.60000 as the case may be.

How are 80DD & 80DDB different except for the fact that in case of 80DDB the person can claim deduction for himself.IS there any other difference too?

 In brief the following are the differences:

a. 80DD is for specified permanent disabilities (to be certified by the Medical Board) whereas 80DDB is for neurological diseases and fatal diseases such as cancer renal failure etc., stipulated in the Rules to be certified in Form No.10-I (to be signed by two Govt Doctors-the specialist.and the head of the Govt hospital(sometimes the same person may sign if he is the specialist who is the head of the Institution)

b. The format for the Deduction u/s.80DDB is Form 10-I. (See Rules)

c.80DD stitpulates the deduction according to severity whereas 80DDB stipulates deductions depending on whether the person who is affected by the disease is a Senior Citizen (should have completed 65 years during the year in consideration and not 60 years) or not.

d.80DD is allowable even for maintenance (i.e., nursing care), whereas 80DDB is only for treatment

e.80DD deductions are flat deductions (actual expenditure is not to be considered-if the person is eligible and if the assessee gives in writing that he is spending for the treatment it will do) whereas the Dedn u/s.80DDB is actuals or the amount stipulated w.e. is less. Therefore bills and vouchers have to be preserved.

f.Read Sec.800DD-It is also allowable for some deposits made in the name of dependants.

g.80DD-Certificate is valid for the period stipulated in the same. If the disability has to be reviewed after certain period, till that time that certificate is sufficient. In 80DDB, certificate has to be obtained in Form 10-I every year.

h.80DD is allowable at source whereas 80DDB is claimable before the tax authorities.

i. Form No.10-IA is applicable in case of some specified diseases u/s.80DD/80U.

Thanks for all who responded to my query,

Even if you want to claim for both dependents we are not able to do because SARAL package is taking the limit as Rs 1 Lakh for SEC DD and Rs 40 K for SEC 80 DDB.    This year I wish to file my return manually with Rs 2 L deduction for two dependents of mine who are mentally chanllenged.   If my return is not allowed then what is the course of action to be followed.

 If the ITO disallow the claim, you may have to go for appeal. If you are claiming a deduction u/s.80DD for one dependent and for another dependent u/s.80DDB, they may not be having any objection. It is allowable definitely.

If u claim Rs.100000 x 2, they may disallow Rs.100000/-. You have to go on appeal to the Commissioner(Appeals) within 30 days of receipt of the order.

Besides the legalities, in my opinion, this has to be represented before the authorities and MPs, Central Ministers, State Chief Minister and the President of India (Mr.Kalam and also . For kidney failure etc., representations are made before the State/Central Govt., through the MLAs and MPs and the relief is obtained. You can also write to the Central Board of Direct Taxes asking for clarification.

Your case is definitely a fit case for representation. If you write to few like this, somebody may take up the case in the parliament and similar assessees shall be benefited.

Technically speaking a one eyed person is not eligible for deduction u/s.80DD or 80U as this is taken as 30% disability whereas the minimum eligible is 40%. Such anomolies are there in the Acts and Rules and repesentation is the only way to get proper justice. As Sec.80DD/DDB/U are all Social Welfare measures, chances are bright that you may get relief.

Please note that I have already sent a representation, in this regard,  to THE PRESIDENT OF INDIA, THROUGH THE "RASHTRAPATI BHAVAN HELPLINE PORTAL" available in THE PRESIDENT'S OFFICIAL WEB SITE.

Trust this will bear some fruits to the brothers and sisters of the Nation who are really good souls spending a lot on such dependents.

Thanks Srinivas for clarifying the difference between 80DD & 80DDB.

As you have pointed out that 80DDB is also for neurological diseases in which disease the person affected would definitely need special care(nursing) & training & rehabilitation(physiotherapy) which would incur huge expenditure on the part of the person , especially when if he himself is affected. I fail to understand why this has been left out in 80DDB & has been only restricted to treatment.

Also, can 80U & 80DDB be claimed together if the person himself is affected ?

 The law makers only should clarify your doubt reg the first query.

As far as the second query is concerned, I feel there is no restriction in claiming Sec.80DDB and 80U together as long as the conditions stated therein are satisfied.

Yes Srinivas , but the big question is how do you bring it to the notice of the people concerned who have the powers to make amendments.

By the way, Shiva has mentoned that the limit for 80DD & 80DDB has been raised to one lac.I think its only for 80DD that the limit has been raised to 1 lac & not 80DDB.

Sir, do i need to produce any certificates or bills to the income tax department, if i am filing through efiling website...IT people told that we only need to send ITR V. where as my PAN details are not mentioned in any of my medical bills. how do they come to know that it is genuine deduction or fake deduction??? Plz explain me in this regard..if we hav to get the certificate, whom shall i caontact??..thanks in advance