Clause 21 - Amendment of section 80DD - Finance Bill, 2022

Amendment of section 80DD. 21. In section 80DD of the Income-tax Act, with effect from the 1st day of April 2023, (I) in sub-section (2), for clause (a), the following clause shall be substituted, namely: (a) the scheme referred to in clause (b) of sub-section (1) provides for payment of annuity or lump sum amount for the benefit of a dependant, being a person with disability, (i) in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made; or (ii) on attaining the age of sixty years or more by such individual or the member of the Hindu undivided family, and the payment or deposit to such scheme has been discontinued; ; (II) after sub-section (3), the following sub-section shall be inserted, namely: (3A) The provisions of sub-section (3) shall not apply to the amount received by the dependant, being a person with disability, before his death, by way of annuity or lump sum by application of the condition referred to in sub-clause (ii) of clause (a) of sub-section (2). .