Saturday, February 12, 2011

80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative


Persons Covered
Resident Individual/HUF.
Eligible Amount
  1. Deduction is available if expenditure is incurred on:
i. Medical treatment [including nursing], training and rehabilitation of a disabled dependant, or,
ii. Any payment or deposit made under a scheme framed by LIC or any other insurer or the administrator or the specified company and approved by the Board for payment of lump sum amount or annuity for the benefit of dependant with disability.

  1. The concerned assessee must attach a copy of certificate in the prescribed Form and signed by prescribed medical authority along with return of income filed u/s 139. A fresh medical certificate may be required to be submitted after the expiry of stipulated period depending on the condition of disability as specified in such certificate.
  2. Dependant means (a) in case of an individual, the spouse, children, parents, brothers and sisters of such individual and (b) in the case of a Hindu Undivided Family, any member of HUF; and who is dependant wholly or mainly on such individual or HUF for support and maintenance and who has not claimed deduction under section 80U for the assessment year relating to previous year.
  3. Disability" has the same meaning assigned to it in Section 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 [hereinafter referred to as PDEOPRFP Act] and includes "autism", "cerebral palsy" and "multiple disabilities" referred to in clauses (a), (c) and (h) of Sec. 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 [NTWPACMRMD Act].
  4. Person with Severe Disability" means a person suffering from 80% or more of one or more disabilities prescribed u/s. 56(4) of PDEOPRFP Act or u/s. 2(o) of NTWPACMRMD Act.
  5. If such dependant predeceases the individual or the member of HUF in whose name the subscription is made in the scheme, the amount shall be taxable in the hands of the concerned assessee in the year of receipt.
  6. The assessee can nominate (a) disabled dependant or (b) any other person or (c) a trust, to receive the payment from the scheme for the benefit of disabled dependant.
Extent of Deduction
  1. Rs. 50,000/- in case of normal disability or (b) Rs. 1,00,000/- in case of severe disability, irrespective of actual expenditure incurred.

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