• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

MY DAUGHTER is just about two months old. Unfortunately, she has been diagnosed with VSD (ventricular septum defect), which as per the paediatric cardiologist might require a surgery six months to two years from now.

I came to know that congenital diseases, such as congenital heart diseases in my daughter's case, is not covered under medical insurance cover from Oriental Insurance My query is:

Can the required surgery and hospitalisation charges be covered in any way by any insurance company — like a different policy, increasing the annual premium, and so on? And, does my personal expenditure on treatment and/or surgery get income-tax deduction under any Section.

Pankaj Arora, New Delhi

I think it would be futile to persist with the search for a mediclaim insurance cover. No insurance company would offer a cover knowing pretty well that it would have to fork out several times more for sure. In the event, the only solace you can seek is the tax benefit under the income-tax law.

Section 80DDB gives a deduction from the gross total income, a sum of Rs 40,000 or actual expenses, whichever is less, in respect of medical expenses incurred on child, among others, in respect of specified diseases.

Rule 11DD, as it existed under the old Section 80DDB, did not list congenital heart disease as one of the diseases begetting the benefit under this section. You may petition the CBDT for inclusion of this disease also in the said rule.

Private problem

I HAVE invested around Rs 1 lakh in a private company's equity. This I did on the recommendation of a family friend.

The company has not paid any dividend so far during these ten years I have held the shares. Can I get my money back from the company?

Nidhi Kulpathi, Agra

I am afraid you cannot. Yes, one of the promoters can definitely buy you out if he wants, as invariably permitted by the Articles of almost every private company.

But will he? I doubt very much because his very intention was to inveigle you into investing in the company.

There are several such companies in India. You can petition the Company Law Board under Section 398 for mismanagement along with other shareholders who also have been thus duped. But if the company puts up a brave defence and the charge of mismanagement does not stick, you have no option but to bide your time.

The exit options for shareholders are extremely limited and they are even more limited in case of private companies. In the case of public companies theoretically at least there would be the market if the shares are listed.

But even in the case of listed shares, listing has proved to be illusory in vast majority of cases with there being absolutely no trading in these shares. Which is why one should always go for actively traded shares.

But this is easier said than done because such shares command huge premium on the bourses.

(ASK! Send in your queries on accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

S. Murlidharan

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ICAI's opinion on negative report

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line