The Hindu Business Line : Gift for a married daughter

I gifted Rs 2 lakh to my married daughter. Is this taxable in the hands of my daughter? What are the tax implications on such gift? — V.K. Tibrewal

This amount will not be taxable in the hands of your daughter nor will there be any tax implications on such gift in your hands. You may note that though Section 56 provides that a sum received without consideration can be taxable in the hands of the recipient, the said provision also makes an exclusion in respect of such sums received from relatives and a gift from the father is also excluded from taxation as the father is one of the specified relatives.

I am a salaried employee. My grandmother, who is suffering from intestinal cancer, is undergoing naturopathy treatment. She has, however, not undergone any surgery till date. As I am meeting all the treatment expenses, can I claim deduction under Section 80DDB?

I am also paying a tuition fees of Rs 40,000 for the full-time education of my sister. Will this payment of fees qualify for deduction under Section 80-C? — Prajkta Sonak

Section 80DDB allows a deduction to a resident individual if he incurs expenditure on medial treatment of a disease or an ailment specified by the Board if the treatment is for himself or a dependent of his. The deduction will be the amount actually incurred or Rs 40,000 whichever is less (Rs 60,000 if the patient is a senior citizen).

For claiming this deduction, the assessee must furnish a certificate in the prescribed form from a specialist working in a Government hospital. The diseases and ailments are prescribed in Rule 11DD. The rule does refer to malignant cancer as one of the specified ailments/diseases.

In your case, however, the deduction will not be available since the deduction can be claimed only where the expenditure is incurred on the medical treatment of a dependent of the assessee, where the assessee is an individual. The term depended means in the case of an individual, the spouse, children, parents, brothers and sisters of the individual dependent wholly or mainly on such individual for his support and maintenance.

Since the term dependent does not bring within its scope the grandmother of an individual. Though you may have incurred the medical treatment on your grandmother, the expenditure on such treatment will not qualify for deduction.

In so far as the sum paid for the education of your sister is concerned, this will also not qualify for deduction under Section 80-C since this Section only provides for a deduction in respect of the tuition fee paid for the higher education of any two children of the individual.

I am pursuing my masters in business administration through correspondence course. Can I claim any tax benefit in respect of the fee that I pay for the said course? — Sathish

No tax benefits are available under the Income Tax Act in respect of the fee paid for one’s own education. Therefore, no deduction can be claimed by you in respect of the fees paid.

My wife is pursuing her full time B.Ed course. I have paid Rs 38,000 as tuition fees for the said course. Will I be eligible for any tax deduction in respect of such fee paid? — Yogender Sharma

No tax benefits are available under the Income Tax Act in respect of the fee paid for the education of one’s spouse. Therefore, no deduction can be claimed by you in respect of the fees paid.

My son is studying in 11th standard. He has opted for computer science group and the following fees were paid: Admission fees (Rs 1,000); tuition fee (Rs 700 per month); term fees (Rs 700 per quarter); exam fees (Rs 250) and computer fees (Rs 20,000) per annum. Which of these will qualify for deduction under Section 80-C? — Henry Pillai

Section 80-C permits a claim for deduction in respect of tuition fees paid (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter to any university, college, school or other educational institutions situated within India for the purpose of full time education of any two children of an individual. In your case, other than the admission fees all the other payments appear to be in the nature of tuition fee and therefore would qualify for deduction under Section 80-C.

I resigned my job in India and left for the UAE to take up a job there on August 18, 2006. During the financial year 2006-07, I visited India after August 18, 2006, for a total period of 21 days. I again left my job in the UAE on October 31, 2007, to take up a job in India. During the financial year 2007-08, up to October 31, 2007, I had been in India on a visit for only 10 days. Will the salary that I received in UAE be taxable in India for these two financial years? — Ashok

During the financial year 2006-07 you have been in India for a period of 161 days. Similarly, for the financial year 2007-08 you have been in India for 161 days. In both these years you have been in India for less than 182 days. Therefore, in both these years you would be a non resident in accordance with the Section 6 of the Income Tax Act. Since you are a non resident in both the years, the salary received by you in both these years in the UAE for an employment exercised there will not be taxable in India.

(Mail your queries to taxtalk@thehindu.co.in or by post to `Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002)