When filing my tax return I used to get Rs 40,000 rebate for my neuroproblem by submitting the doctor’s certifricate without any expenditure bills under Section 80DDB. It seems that severely disabled persons can get a deduction of upto Rs75,000. How can I get this? My neuro problem is so severe that I need to take VRS. I require a person while traveling in a train. NagarajYou have succeeded in claiming the deduction of Rs 40,000 under section 80DDB. The same section in respect of a senior citizen grants a deduction upto Rs 60,000. Senior citizen for this section means an individual who is of the age of 65 years and above at any time during the relevant previous year. In our opinion the deduction is dependent upon actual payment of the amount. Consequently, the income tax officer may insist on the evidence of the expenditure. The amount of Rs 75,000 for severe disability referred to by you is contained in section 80DD of the Act. That section grants deduction upto Rs 75,000 in respect of medical treatment of a dependent of the assessee. If the assessee himself were to spend the amount for severe disability, section 80DDD will not be available. I am a salaried person, my wife is also in service. We both earn about Rs 6 lakh in one year. We are buying a house in a joint name. Can we both take a loan for the same house and then both get the tax benefit?What are the other tax benefits that are possible on this? I heard that we can get a maximum benefit of upto Rs 5 lakhLavli Singh Yes. You can buy a house property in joint names of husband and wife. Agreement should refer to both as Purchasers. You two can also contribute financially towards the cost of house property in whichever proportion, ideally equally. You can both take loan(s) for the same house and thereby enjoy the tax benefit in both the Income tax files. Under section 24 of the Income tax Act, 1961 you can claim deduction for the interest on housing loan and under section 80C you can deduct upto Rs 1 lakh towards repayment of principal sum. You have a win-win situation in your file as well as in your wife’s file. Good news is that even after new law taxing withdrawals of savings coming into force, you will not be hit at all since in your case there is no question of any ‘withdrawal’ in future. My mother is 67 and is dependant on me. She has no source of income and does not file tax returns. Can I buy senior citizen bonds in her name and get higher return? How can I do this with my salary income? Can I give her a gift? Will it not attract clubbing provisions?K D Cahudhary Instead of issuing a cheque from your bank account and subscribing to the ‘Senior Citizens Savings Scheme’ in the name of your mother (aged at least 60 years) to get a higher 9 per cent taxable interest, better course would be to gift the amount to her by cheque drawn in her name and then depositing into Senior Citizens Savings Scheme in her name from out of her savings bank account. Needless to add, gift by a son to his mother is exempt from taxation without any limits. Ensure that you are the nominee in that account. Send in your insurance, tax, investment and financial planning questions to ymm@expressindia.com and get advice from our panel of experts
