section 80DDB

Query 1]

I have one small query regarding LIC premium & expect your kind advise
My wife & myself are filing Income Tax return individually. I am a CPSU Executive and my wife is earning from tuitions classes of students since last 10 years. I have paid the LIC premium for say five policies in the name of myself, my wife’s name and for our two children including LIC Jivan suraksha for me. Due to increase in my CPF deduction in my salary component, the limit of Rs.100000/- is now comes from CPF only and hence the amount of LIC premium of Rs. 30,000/- do not contribute for any Income tax rebate benefit to my family.

On the other hand due to increase in tuition earnings of my wife she need to save for Income Tax rebate. Kindly advise us, can we shift the LIC policy premium contribution of the existing policies from my account to my wife’s account so that she may get the benefit of Income Tax rebate in her Income Tax Return? In case it is possible then what is the formality required for the same?[brajeshprasad_sinha@rediffmail.com]


Deduction under section 80C towards Life insurance premium payment is available to the person who makes the payment. As a tax planning tool, you can shift the LIC policy payment commitment from your account to your wife account. Your wife can claim deduction u/s 80C if she makes the payment of your LIC Policies taken out in her name or in your name or in the name of your children.


Query 2] Brief Fact:

  1. I am working in public limited company.also I have purchased a residential plot in September 2009. I took loan from ICICI Bank as plot loan.

  2. Also I have paid installments till September 2010 to ICICI bank and later paid the whole balance amount to ICICI Bank in October 2010 and closed the Account.

  3. And I have availed loan from SBI in Nov-2010 and started building a house at this plot.

  4. Also I have not availed the benefit in Income tax in financial year 2009-10 as it is a plot loan

Since I am constructing a house on the same plot within a span of two year from purchase, can I avail Income tax benefit for the financial year 2009-10 and 2010-11 for the interest amount? [vmkalantri@yahoo.com]


Interest in respect of pre-construction is deductible in five equal annual installments commencing from the previous year in which the house is constructed/acquired. For this purpose “pre-construction period” means the period commencing on the date of borrowing and ending on March 31 immediately prior to the date of completion of construction /acquisition.

If the house is completed in any particular year then one should note that the pre-construction interest doesn’t include the interest from 1st April of that year to the date of completion in that year.

In your case, if the construction of your house
a] is completed in the F.Y. 2010-11, then pre-construction period interest would mean interest of the F.Y. 2009-10 only. In this case, interest would be the interest paid to ICICI Bank only.
b] is completed in the F.Y. 2011-12, then pre-construction interest would mean interest of the F.Y. 2009-10 & 2010-11 taken together. In this case, interest would be the interest of ICICI Bank & SBI also.
It may further be noted that for housing loan interest deduction up to Rs. 1,50,000/-, the construction should be completed within a period of 3 years from the end of the financial year in which capital was borrowed.

Query 3]
Sir, please let me know What are the diseases covered by section 80DDB & whether I am entitled to have tax saving under section 80DDB,for my parents treatment in a private hospital?. [atul670@yahoo.co.in]
  1. Deduction u/s 80DDB :
    The deduction u/s 80DDB is available if the expenses for the medical treatment of specified disease or ailment is incurred by assessee on himself or on dependant. The specified disease for the purpose of section 80DDB is prescribed in Rule 11DD as under:
    11DD. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments :
    (i) Neurological Diseases where the disability level has been certified to be of 40% and above,—
    (a) Dementia ;
    (b) Dystonia Musculorum Deformans ;
    (c) Motor Neuron Disease ;
    (d) Ataxia ;
    (e) Chorea ;
    (f) Hemiballismus ;
    (g) Aphasia ;
    (h) Parkinsons Disease ;
    (ii) Malignant Cancers;
    (iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
    (iv) Chronic Renal failure ;
    (v) Hematological disorders :
    (i) Hemophilia ;
    (ii) Thalassaemia.
    The amount of deduction allowable under section 80DDB is the expenditure actually incurred or Rs. 40,000/- (Rs. 60,000/- for senior citizen) whichever is lower.
  2. Deduction is available even if the treatment is done in a private hospital.
  3. For deduction, Assessee has to get a certificate in the prescribed form (Form No. 10-I) from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist as may be prescribed, working in a Government Hospital.
  4. Please note that only the certificate needs to be obtained from a specialist working in a Government hospital, the treatment can be done anywhere.

section 80DDB

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