10 May 2012

To claim deduction u/s 80DDB following condition should be satisfied.

Rules to claim deduction u/s 80DDB following condition should be satisfied
1.Taxpayer should be resident in India in the previous year.

2.Deduction is available to Individual or HUF only.

3.Deduction is available on actual expenditure on medical treatment of specified Disease or ailment as prescribed.

4.Expenditure should be incurred for medical treatment of

1.assessee himself

2.wholly/mainly dependent Husband/wife(spouse)

3.wholly /mainly dependent children

4.wholly/mainly dependent parents

5.wholly/mainly dependent Brother

6.wholly/mainly dependent Sisters

7.in case of Huf ,wholly/mainly dependent member of the HUF

5.Assesee shall have to submit certificate in form no 10-I from prescribed specialist working in Government hospital

6.Government hospital includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;
7.This deduction can not be allowed by DDO(employer) while calculating the TDS amount .So assessee have to apply for claim this deduction while filing his return in Income tax tax department

Amount of Deduction:



1.Deduction is available for Rs. 40000 or amount actually paid ,which ever is less.

2.If expenditure has been done in respect of dependent who is at least of 65 year of age in any time during the previous year then deduction shall be Rs. 60000 or amount paid which ever is less. Update : Age Limit for Senior Citizen has been proposed to be reduced to 60 Year wef financial year 2012-13 through Finance Bill 2012

3.deduction Amount as arrived in above (1) or (2) will be reduced by amount reimbursed by employer or by insurer.
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 ;(c) Motor Neuron Disease ;(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.

More information refer income tax site : http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2005ITAct/rules011dd.htm

Form 10I can be downloaded from internet

Sample,

FORM NO. 10-I

[See rule 11DD]

Certificate of prescribed authority for the purposes of section 80DDB


Name of the Patient

Address

Father’s name

Name and address of the person on whom the patient is dependent

and his relationship with the patient.

Name of the disease or ailment

(please see rule 11DD)

For diseases or ailments mentioned in item (i) of clause (a) of

sub-rule (1), whether the disability is 40% or more (Please specify

the extent).

Name, address, registration number and qualification of the

specialist issuing the certificate, along with the name and address

of the Government hospital [see rule 11DD(2)]



Verification

This is to verify that I, Dr.____________________________________________________ s/o (w/o) Shri_____________________, in the case of the patient Shri/Smt./Ms. ________________________, after considering the entire history of illness, careful examination and appropriate investigations, am of the opinion that the patient is suffering from ______________________________disease/ailment during the previous year ending on 31st March,_______________________ I also certify (only in case of neurological disease) that the extent of disability is more than 40%) (Strike off, if not applicable).

I certify that the information furnished above is true to the best of my knowledge.

Date _______________

Place _______________


Signature

(Name and Address)


To be countersigned by the Head of the Government hospital, where the prescribed authority is a

specialist with post-graduate degree in General or Internal Medicine.



Date ______________

Place ______________


Signature

(Name and Address)

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