CONCESSIONS UNDER 8ODD INCOME TAX

 

The following section 8ODD shall be substituted for the existing section 80DD by the Finance Act, 2003. w.e.f. 1-4-2004:


Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

8ODD. (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 n 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 "seventy-five thousand rupees' had been substituted.

(2) The deduction under clause b) of sub section (1) shall be allowed only if the following conditions are fulfilled. namely: -

(a ) the scheme referred under clause (b) of sub section ( 1 ) provides for payment of annuity or Iumpsum amount for the benefit of dependant, being a person with disability, in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made:

(b)the assessee nominates either the dependant. being a person with disability. or any other person or a trust to receive the payment on his behalf, for the benefit of the dependant, being a person with disability.

(3) If the dependant, being a person with disability, predeceases the individual or the member of the Hindu undivided family referred to in sub-section (2) an amount equal to the amount paid or deposited under clause

(b) of sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such
amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.

(4) The assessee, claiming a deductionn under this section, shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner. alongwith 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 he 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 he prescribed, and a copy thereof is furnished alongwith the return of income.