I have incurred expenses of Rs 70,000 in the medical treatment of my daughter in the current financial year. Can I claim deduction on such expenses while calculating my tax liability?

J. Das, Calcutta

Assuming that your child is financially dependent on your income, you can claim deduction of up to Rs 40,000, or the actual amount paid, whichever is less, under Section 80DDB. If you are a senior citizen, the maximum exempted amount is Rs 60,000. Further, if you are a salaried individual and have an active mediclaim policy, the premium paid either by you or by the employer will be exempt under Section 80D. The maximum amount allowed for exemption annually for self, spouse and dependent parents/children is Rs 15,000. In the case of a senior citizen, the maximum amount extends up to Rs 20,000.

Tax certificate not required

Is it mandatory to obtain a tax clearance certificate before leaving the country for an individual domiciled in India?

R. Sinha, Calcutta

Before June 2003, the Indian tax law requires a person domiciled in India to obtain a tax clearance certificate before leaving the country. However, through amendments under Finance Act 2003, the requirement to obtain a tax clearance certificate (TCC) was relaxed. So, at present, there is no requirement to obtain a TCC unless specified by the income tax authority, particularly in cases where there are financial irregularities. For persons who are domiciled in India, only the permanent account number, the purpose of visit outside India and the estimated period of stay outside India are required.

Gift from HUF

My grandfather (not alive) has an HUF income tax file. My parents, me and my wife and my brother and his wife are members of the HUF. Can I gift to myself from the HUF with the permission of all beneficiaries?

James C, via e-mail

It is possible to gift from the HUF to your personal income tax file with the permission of all the beneficiaries. The gift received will be exempt from tax under Section 56 (2) (vi) of the income tax act.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.