Elders allowed rebate up to Rs 50k u/s 80D

Q.   My query is with reference to my earlier one and thereon your advice published in these columns on 19.06.2017. In the reply, you had advised that if expenditure is occurred on an MRI  test, it may be possible to claim deduction of such expenditure under Section 80D of the Income Tax Act,  1961. Further, it was advised that in case tests were carried out to prevent any damage, it may be possible to claim deduction under the aforesaid section. 

Now I have been operated for left inferior parathyroid adenoma (LIPA) at PGIMER, Chandigarh. The doctors advise blood-related tests time and again to prevent the disease further. After finding increasing ALP &  AST (liver-related),  I have been referred to liver clinic of PGIMER recently.  Doctors there, too, advise blood tests as per requirements. Please advise whether the deduction under Section 80D is applicable for FY  2018-19, and the total amount for which deduction can be claimed, documents required to be produced for rebate, whether the rebate is also applicable on the expenditure occurred on tests of dependents (spouse and minor son). - Gurjinder Singh Thuha

A.  Section 80D of the Income Tax Act,  1961 (The Act) provides that in case of an assessee, being an individual, the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family which  does not exceed in aggregate Rs 50,000, in respect of a senior citizen is allowable as a deduction from his total income provided no amount has been paid to effect or keep in force an insurance on the health of an assessee.  A deduction to the extent of the amount referred to hereinabove shall be allowable to you from your total income provided you are a senior citizen and the amount incurred on various blood tests and other medical expenses as per the requirements of the hospital supported by medical prescriptions as well as receipt for the payments made for such an expenditure is available with you. The deduction of the amount would cover yourself and member of your family i.e. your spouse and dependent children.

Q. My son is working in Singapore and an NRI. Please let me know how much money he can transfer to his NRI account and in his mother’s account in India in a year.  - Sansar Chand

A.  Your son can open two types of accounts with a bank in India viz NRE account and NRO account. Any amount remitted in foreign exchange from Singapore can be deposited by your son in NRE Account. As against this, the amount of any income accruing in India to your son has to be deposited in NRO account. Your son can remit any amount which is earned in Singapore in foreign currency for being deposited in NRE account.  Similarly, any income accruing in India to any extent can be deposited in NRO Account. Your son can gift any amount to his mother from either of the two accounts provided the transaction is through banking channel. It may be added that your son will have to send a letter about such a gift and his mother will have to send an acceptance letter with regard to such a gift. The letters should indicate complete address, PAN and details of the relevant bank account of donor and donee.

Q.   I am a senior citizen aged 83 and have my savings account in SBI, Malerkotla. Income tax for financial year 2017-2018 has been deducted from my pension income @ Rs 5,539 pm from April 2017 to September 2017 (six months) and Rs 4,971 from March’ 18 pension on 03/04/2018. The TDS of 1st six months has been deposited in I-T department account in two instalments, but last TDS of Rs 4,971 has not been deposited in the account of I-T Department till now despite my two complaints dated 21/07/2018 and 17/09/2018 to the bank concerned. What can be the possible reason? What should I do? - Ram Murti

A.  According to the provisions of Section 276B of the Act, if a person fails to pay to the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of the Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years, along with fine. Therefore, in case the bank has deducted tax at source and not paid to the credit of the Central Government, the official concerned of the bank would be subject to the aforesaid penalty. It would, therefore, be advisable to approach the Commissioner of Income-tax for the purpose of initiating proceedings against the bank under the aforesaid provisions of the Act so that you are able to get the due credit for the tax deducted at source by the bank. It is not possible to indicate the reasons for not depositing the tax because this aspect can be ascertained only from the bank.