I have a handicapped dependent who is my cousin ( Daughter of my mother’s sister). She is completely dependent on me and every month I spend 10,000. She is suffering from 85 % Blindness and mental problem. Whether I can claim tax benefit under 80DD?

Chapter No. 11 - Deduction u/s 80DD & 80DDB

U/s. 80DD dependent means in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them;

It is clear that section 80DD is applicable only if the person on whom you are spending are any one of following

·          your wife or husband

·          your children

·          your parents

·          your brother

·          your sister

·          your wife’s or husband’s brother or sister

·          your parents’ brother or sister

The Daughter of your mother’s sister is, clearly, not coming under the definition of dependent for the purpose of claim of deduction u/s 80DD. So, you cannot claim deduction u/s. 80DD in respect of expenses incurred for her maintenance and medical treatment.

Dated: 13-8-2015