Tax Planning

Section 80DD
Deduction under this section is available to an individual who:

• Incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant; or
• Deposits any amount in schemes like Life Insurance Corporation for the maintenance of a disabled dependant. An annuity or a lump sum amount is paid to the dependant or to a nominee for the benefit of the dependant in the event of the death of the individual depositing the money, from the said scheme,

A deduction of Rs 50,000 is available. Where the depandant is with a severe disability, a deduction of Rs 1,00,000 is allowed. (As per AY 2009-10)

If the death of the dependant occurs before that of the assessee, the amount in the scheme is returned to the individual and is taxable in his hands in the year that it is received.

An individual should furnish a copy of the issued certificate by the medical board constituted either by the Central government or a state government in the prescribed form, along with the return of income of the year for which the deduction is claimed.

The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependant on him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.

This deduction is also available to Hindu Undivided Families (HUF).

So u cnnt claim it on Adopted Child.

regards,

ratan

Dear Ratan,

As per Definition of Child in Income Tax it include Adopted Child.

Dear Ratan,

Please see the Defination of child in Income Tax Act:-

Section  2(15B) defines “child”, in relation to an individual, includes a stepchild and an adopted child of that individual. If stepchild and adopted child is child then it is not necessary that, in order to be a brother/sister, one should have the same parents.

Benifit will be available  also to  dependent defined as per income tax.

Dependent means----

The term 'dependent' here refers to the spouse, children, parents and siblings of the assessee who are dependant on

him for maintenance and who themselves haven't claimed a deduction for the disability in computing their total incomes.

Children includes :- 'Adopted child"

Therefore you can take the benifit.

1. yes

2. 75k / 1lakh, No limit of expense but u hv to incurr some amount.

yes the definition of Child includes Step Child and an adopted child but on any ground it will not include an illegitimate child.So you can claim deduction on adopted child