Section 80DD

Section 80DD — the law in short

What the courts have decided on section 80DD, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Ravi Agrawal v Union of India Supreme CourtHelps departmentSuperseded by amendment
  My client took a Jeevan Aadhar policy for his disabled child and claimed s.80DD, but the policy pays nothing while he is alive. Is that condition open to challenge?
  The Supreme Court held it is not. Section 80DD(2)(a), which allowed the deduction only where the scheme provided for payment of the annuity or lump sum on the death of the subscriber, was held to rest on a reasonable classification with a rational objective and could not be struck down under Article 14; the Court said it cannot direct Parliament to amend a provision in a specified manner. It disposed of the writ petition by urging the Union to have a relook and explore suitable amendments — and Parliament then did amend the section.
• Abhishek Rajeshbhai Karia v ITO, Ahmedabad ITATCuts both waysValidity unconfirmed
  My s.148 reassessment started over a political donation but the Assessing Officer has disallowed my 80D and 80DDB for my parents' medical expenses as well. Are those safe?
  On this order the s.80D claim of Rs 75,000 for health insurance premium and medical expenditure incurred for the assessee's parents was allowed outright, the Tribunal holding the disallowance unjustified because the expenditure was incurred for his parents and is deductible under s.80D. The s.80DDB claim of Rs 87,000 for a father diagnosed with cancer was NOT allowed: it went back to the Assessing Officer because eleven documents called for had never been produced either before him or before the CIT(A).

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.