(F) Deduction In Respect Of Maintenance Including Medical Treatment Of Handicapped Dependent — Section 8ODD

Section 8ODD provides that the parents or guardian could claim a deduction upto Rs. 50,000 for the medical treatment and for future needs of the medical treatment by paying or depositing under any scheme of LIC of UTI for the maintenance of the handicapped dependant, in the manner most suited to his needs. This is subject to certain provisions regarding taxation of the amount in case the handicapped dependant pre-deceases the individual or the member of the HUF.

Higher education would be allowed to persons with severe disability. For this purpose the definition of disability would be as mentioned in clause (t) of Section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

To mitigate the hardship of guardians of a dependant person it is now provided in the law to allow full deduction of the amount of 50,000 to remove eventuality of insistence by the Assessing Officer to produce evidence regarding the expenditure. Thus, this deduction would be allowable where the assessee has incurred any expenditure or made a payment in the LIC or UTI specified schemes. The deduction in the case of a dependent person with severe disability would be
` 1,00,000.


The Finance (No.2) Act, 2004 has extended the scope of deduction to cover a person with severe disability referred to in clause (o) of Section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.

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