Income Tax Benefits for Disabled Persons
The most significant development is amendment to section 80 DD of the Income Tax Act as
presented in the Union Budget 99-2000 finance bill. Section 80 DD has substituted the earlier
section 80 DD, the assesse of the Hindu Undivided Family (HUF) would be entitled to a deduction of Rs. 40,000 in respect of any expenditure for medical treatment (including nursing), training and rehabilitation of handicapped dependent. If this amount is not spend on the treatment but deposited under any scheme by LIC or UTI for the maintenance of the handicapped children, then also this deduction would be permissible, during the accounting year 2000-2001.
presented in the Union Budget 99-2000 finance bill. Section 80 DD has substituted the earlier
section 80 DD, the assesse of the Hindu Undivided Family (HUF) would be entitled to a deduction of Rs. 40,000 in respect of any expenditure for medical treatment (including nursing), training and rehabilitation of handicapped dependent. If this amount is not spend on the treatment but deposited under any scheme by LIC or UTI for the maintenance of the handicapped children, then also this deduction would be permissible, during the accounting year 2000-2001.
On advocacy by parents having children with mental retardation Shri. D. K. Manavalan vide his
letter no. 1325. SECY (SJ & E) / 99 dated February 16, 1999 to chairman, Central Board of Direct taxes, New Delhi made a request that parents need not submit supporting vouchers on medical bills for having incurred expenditure on medical treatment of their mentally handicapped ward. The Central Board of Direct Taxes vide its letter dated March 26, 1999 issued a clarification that it would be sufficient to furnish a medical certificate from a Government doctor and a declaration in writing duly signed by the assessee certifying the actual amount of expenditure on account of medical treatment including nursing, training and rehabilitation of the disabled dependent, and receipt / acknowledgement of the amount paid or deposited in the specific schemes of LIC or UTI will be sufficient. The circular to the Drawing and Disbursing officers clearly indicated that they need not insist on production of vouchers or medical bills by the employees for having incurred expenditure on medical treatment of their disabled dependent for allowing the deduction under Section 80 DD for the Purpose of computing tax deductable at source.
letter no. 1325. SECY (SJ & E) / 99 dated February 16, 1999 to chairman, Central Board of Direct taxes, New Delhi made a request that parents need not submit supporting vouchers on medical bills for having incurred expenditure on medical treatment of their mentally handicapped ward. The Central Board of Direct Taxes vide its letter dated March 26, 1999 issued a clarification that it would be sufficient to furnish a medical certificate from a Government doctor and a declaration in writing duly signed by the assessee certifying the actual amount of expenditure on account of medical treatment including nursing, training and rehabilitation of the disabled dependent, and receipt / acknowledgement of the amount paid or deposited in the specific schemes of LIC or UTI will be sufficient. The circular to the Drawing and Disbursing officers clearly indicated that they need not insist on production of vouchers or medical bills by the employees for having incurred expenditure on medical treatment of their disabled dependent for allowing the deduction under Section 80 DD for the Purpose of computing tax deductable at source.
Income Tax Concessions
The Government of India has recently announced the following additional concessions for
individuals or Hindu Undivided families who have a relative who is physically disabled.
individuals or Hindu Undivided families who have a relative who is physically disabled.
If an assessor who is resident in India, being an individual or Hindu Undivided Family has a
relative who has permanent physical disability and the assessor has, during the previous year,
incurred any expenditure for medical treatment (including nursing), training and rehabilitation of the disabled person, he/she shall be allowed a deduction of Rs.6,000/-. This deduction will not be allowed where the income exceeds Rs. 1,00,000/-
relative who has permanent physical disability and the assessor has, during the previous year,
incurred any expenditure for medical treatment (including nursing), training and rehabilitation of the disabled person, he/she shall be allowed a deduction of Rs.6,000/-. This deduction will not be allowed where the income exceeds Rs. 1,00,000/-
Deduction from the total income of disabled persons under section 80-U of the Income Tax Act
has been raised from Rs. 20,000/- to Rs. 40,000/-
A deduction of Rs. 20,000/ - from the taxable income of the parents or guardians of disabled
children has been allowed, provided this amount is deposited in any approved scheme of LIC,
UTI etc.
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