I have a physically handicapped child (95% handicapped). The IT act says I can get a deduction for investing in LIC policy for her which is specially designed for handicapped people. can any one tell me some detail of this policy & what deduction I can get from Income tax for such investment. Is there any other investment for my daughter which can give me some tax relief
RE:deduction for handicaped daughter
by Amitabh on Apr 28, 2007 05:06 PM Permalink
Yes,for investing in LIC policy for her,you will get deduction under sec 80C within the overall limit of rs 1 lac.Moreover,you will get a furthur deduction of rs 50,000 (Rs 75,000 for severe disability) under sec 80DD if you spend any amount (even if less than the above amount) on her medical treatmant or amount deposited under an approved scheme of LIC or UTI or any other insurance company,Moreover,if you give a gift to her and she earns income from such gift,that income wont be clubbed with your income and Sec 64(1A)clearly mentions that minors who suffer from disability mentioned in Sec 80U,any income to them is exempt from clubbing provisions.The benefit of this would be that under Sec 80U Rs 50,000 deduction is allowed for handicapped assessees (Rs 75,000 for severe disability).You can take advantage of these provisions.
RE:deduction for handicaped daughter
by SUVOBRATA GHOSH on Apr 29, 2007 09:46 AM Permalink
Thanks for your reply. You have mentioned about depositing money UNDER AN APPROVED SCHEME of LIC or UTI. Can you give me name of any such scheme?
RE:deduction for handicaped daughter
by Amitabh on May 03, 2007 05:18 PM Permalink
I would like to add a clarification here.The definition of dependent in Sec 80DD says that the dependent should not have claimed any deduction under Sec 80U.So you can take advantage of only one section,either 80DD or 80U.
