Income Tax Act | Supreme Court Refuses To Give Retrospective Application To 2022 Amendment To S.80DD Regarding 'Jeevan Adhar' Policies

The Supreme Court of India ruled that the 2022 amendment to Section 80DD of the Income Tax Act, concerning Jeevan Aadhar policies for the benefit of disabled dependents, will not have retrospective effect. The case involved a taxpayer who sought deductions under Section 80DD for premiums paid before the amendment was introduced. The court held that retrospective application of tax laws could lead to chaos and uncertainty, emphasizing that amendments should apply prospectively unless explicitly stated otherwise. This judgment underscores the principle that tax benefits and liabilities should not be altered retrospectively, ensuring stability in tax law application. The decision is significant for taxpayers, as it clarifies the scope of deductions available under the Income Tax Act and provides clear guidance on the non-retrospective application of tax law amendments.