ADMISSIBILITY OF DEDUCTION TOWARDS MEDICAL EXPENDITURE

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ADMISSIBILITY OF DEDUCTION TOWARDS MEDICAL EXPENDITURE

Query 1]

I have a query, I failed to file IT return for AY 2013-14 before due date. Now, how I can file the IT return? Kindly advice.  [mashivananda@gmail.com]

Opinion:

Income tax return has to be filed within the due date prescribed [Section U/s 139(1)]. If the return is not filed u/s 139(1) within the due date then it can be filed belatedly u/s 139(4) within one year from the end of the relevant Assessment Year. Effectively, an assessee can voluntarily file the return of income u/s 139(4) within a period of two year from the end of the relevant financial year. Even if you haven’t filed the return for the AY 2013-14 before the due date, you can file it anytime before 31.03.2014 without any penalty. If the return is filed after the end of the relevant assessment year (i.e., after 31.03.2014 in your specific case) then a penalty of Rs. 5,000/- could be imposed on you.

Query 2]

I am 62 year old man still working and my monthly income is Rs. 50,000/-. I underwent a renal transplantation surgery recently and have to incur Rs. 15k per month for Medicines which is required to be continued life long. Can I claim exemption of this Rs. 1.80 Lacs as exemption from tax? [krishnakumarnayanar@gmail.com]

Opinion:

There are two provisions (Section 80DDB & Section 80U) which can grant you some benefit under the Income Tax Act-1961. You would be required to evaluate whether the surgery expenses & subsequent expenses are covered by this provision or not.

  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 u/s 80U:
    Deduction under section 80U of the I.T. Act, 1961 is available to an individual who is resident and who at any time during the previous year is certified by a medical authority to be a person with disability. If you ar suffering from disability, you can claim deduction u/s 80U.
    “Person with Disability” means a person suffering from not less than 40% of any of the disability given below:
    i) blindness
    ii) low vision
    iii) leprosy-cured
    iv) hearing impairment
    v) locomotor disability
    vi) mental retardation
    vii) mental illness
    viii) austim
    ix) cerebral palsy
    x) multiple disability referred to in clauses (a), (c), & (h) of section 2 of the National Trust for welfare of persons with Austim Cerebral Palsy, Mental Retardation & Multiple Disabilities Act-1999.
    The deduction under this Section is a sum of Rs 50,000/- in normal cases and if the person is suffering from a severe disability (80% or more) then a sum of Rs. 1,00,000/- is allowable as deductions.

Query 3]

I had filed income tax return for Assessment year-2012-13 on 20/07/2012. The tax paid was Rs. 4,863/- including Self Assessment Tax of Rs. 3,513/- and TDS Rs. 1,350/- deducted by post office and certificate issued in form 16A. Yet, I received letter from Bangalore income tax department that wherein TDS of Rs. 1,125/- was considered u/s 143(1) as against actual TDS of Rs. 1,350/- and hence ordered to pay difference Rs. 225/- rounded to Rs. 230/-. I enquired and confirmed vide PO’s letter 07/10/2013 that income tax deducted and sent duly was Rs. 1,350/- only. I communicated this to Bangalore, Nagpur and Amravati Income tax offices as well. In spite of this, I have received another letter from Bangalore office to pay the difference of tax of Rs. 230/- by challan provided therewith. I fail to understand as to why I am being asked repetitively to pay the tax which has been already paid, and for which proof is also enclosed from PO which is also a central Government department? Kindly enlighten me and also advice the future course to follow. [K V Deogaonkar Amravati-vijaydeogaonkar@icloud.com]

Opinion:

  1. The credit towards TDS is granted by the CPC on the basis of amount reflected in 26AS. Though post office have paid the amount of TDS, it appears that they have erred in filing the TDS Quarterly return as a result of which probably you are not getting the credit for the entire TDS of Rs. 1,350/-.
  2. The tax payer are advised to regularly track all the tax deducted & deposited in your account [i.e. Tax Credit in Form No. 26AS] by registering your PAN at incometaxindia.gov.in. In the absence of availability of TDS in form No. 26AS it would be difficult for the Assessing Officer to grant the TDS Credit.
  3. Thought the amount is small, we understand that the repetitive letter from the income tax department, even after responding earlier one, becomes annoying. Numbers of assessees are facing this type of problem & grievances on an ongoing basis due to the transitional phase of the I.T. Department from manual to e-environment. In your specific case, you may write a request letter to your jurisdictional Commissioner of Income Tax & also TDS commissioner of the concerned Deductor briefing out the entire fact. This will help you in getting the issue resolved.

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