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Hardik Parikh |106 Answers |Ask -Follow

Tax, Mutual Fund Expert - Answered on Jul 23, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more

Asked by Anonymous - Jul 21, 2023Hindi

Mrs X is disabled due to severe paralysis. He has two sons A & B and husband Y. Both sons spend Rs. 55000/- each on her medicines and Rs. 85000 each on her msintenance. Her hisband spend Rs. 150000/- on her maintenance. RS. 70000/- are spent on medicines from her own income. How should individuals claim in their returns

Ans: Hello,

Based on the information provided and the tax laws in India, here's how each individual can claim deductions in their tax returns:

1. Mrs. X: As a person with severe paralysis, Mrs. X can claim a tax deduction under Section 80U of the Income Tax Act. This section provides tax benefits to individuals who suffer from certain disabilities. The deduction amount for a person with severe disability (80% or more) is Rs. 1,25,000. Mrs. X can claim this deduction for the Rs. 70,000 she spends on her medicines from her own income.

2. Sons A & B: Both sons can claim a tax deduction under Section 80DDB for the amount they spend on their mother's medical treatment. This section provides a deduction for the amount spent on the treatment of specified ailments, which includes neurological diseases where the disability level is 40% and above. The maximum amount that can be claimed under this section is Rs. 40,000 (Rs. 1,00,000 in case of severe disability). Each son can claim this deduction for the Rs. 55,000 they each spend on their mother's medicines.

3. Husband Y: Mr. Y can claim a tax deduction under Section 80DD for the amount he spends on the maintenance of his wife. This section provides a deduction for the expenses incurred on the maintenance and medical treatment of a dependent who is a person with a disability. The deduction amount is Rs. 75,000 for disability and Rs. 1,25,000 for severe disability. Mr. Y can claim this deduction for the Rs. 1,50,000 he spends on his wife's maintenance.

Please note that these deductions are subject to the conditions specified in the respective sections of the Income Tax Act. Also, the disability should be certified by the medical authorities as specified in the Act.

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