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80DD
Direct Taxation
So even after death of disabled still the individual receives annuity right? And only such amt is taxed as per amendment in FA 2022. What if lump-sum was received instead of annuity. So the entire amt is received and still gets untaxed right?
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Best Answer
If an individual receives an annuity after the death of their disabled dependent, the amount received will be taxable in the year it is received. If the individual received a lump sum amount instead of an annuity, the entire amount received will be taxable in the year it is received. However, if the individual had claimed a deduction under Section 80DD for the disabled dependent, the amount of deduction claimed in earlier years will be treated as income in the year in which the lump sum amount is received. This tax treatment has not been changed by the Finance Act 2022.
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