I am an IT payer working with corporate and coming under 30 % bracket . My son is having severe disability and If any deposits are made in his name is it Taxable ?
How can i receive deposit in his name so that there is no or minimum tax implication . This is intended for his maintenance ?
Can My company deposit the money in his name directly ? If yes how can they make payment ?
You can claim deduction under Section 80DD upto a maximum of 125000 an year if the disability is severe as defined in the law.
For claiming such deduction, you must have incurred the expenses for the medical treatment, training & rehabilitation of a dependent (with disability) OR must have deposited the amount to LIC OR any other insurer for the maintenance of dependent(with disability).
Sorry I am unable to understand your question.
What do you mean by deposit made in his name? Cab you pls explain in detail.
Hello,
You can claim a flat deduction of Rs.75000/- or 125000/- while filing your returns based on the severity of his disability.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Hi,
Any amount of money received in his name will be clubbed in your income. You will though get a benefit of deduction of RS.75000/125000 depending on the severity of your child.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
