Tax deductions for people with disabilities

It’s April, the month when most people are busy with their income tax filings so we thought we should bring you some news that may be useful for you. For disabled Indians there is a provision for a tax deduction under Sections 80U and 80DDB. These benefits are provided to people with disabilities or their family members under the income tax laws of India. Here is how they work.

Section 80U gives tax breaks to people with disabilities, while under section 80DDB the benefit is given if any dependent family member has a disability.

Limit of tax deduction

Under Section 80U, there are two categories in which the benefits are covered.

1. A person with at least 40% of disability is eligible for a tax deduction of Rs 75,000.

2. An individual with severe disability, meaning 80% or more, is eligible for a deduction of Rs 1,25,000.

Under Section 80DD there are two categories in which the tax benefits are covered.

1. A person with dependent who has at least 40% of disability is eligible for a tax deduction of Rs 75,000.

2. An individual with a dependent with a severe disability (80% or more) is eligible for a deduction of Rs 1,25,000.

“It is important for disabled people to know the rights and benefits meant for them”, emphasizes Jitendra Kumar Dangi, an Ahmedabad-based tutor. “I have found that most times, people lack of access to information about these benefits and this is a major hurdle. As a disabled person I would appreciate it if better loan and tax deduction schemes are introduced.

Eligibility

The tax benefits are available to a person who is certified as a “person with disability by a competent medical authority. A dependent refers to siblings of the claim seeker, parents, spouse, children or a member of a Hindu Unified Family.

The medical authorities who can certify a person to be disabled include:

 Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.

 Neurologist with an MD in Neurology.

 In case of children, a paediatric neurologist with an equivalent degree.

This should be raised feel some experts.

It must be really increased for the simple reason that disabled people spend more on medical expenses. Firstly, caring for older parents and then the expenses on domestic activity are also the extra expenditures compared with the regular expenses of a common man. A free medical plan for persons with disabilities at all ages will be more helpful particularly for those with severe disabilities. – R Kalyanaraman, Assistant Professor, Government Arts College

Documents needed

To claim income tax deduction under Section 80U there is no particular document required. However, it is advisable to keep the disability certificate handy. For illness such as autism or cerebral palsy, Form 10-IA

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