Relief For The Handicapped
Section 80 DD: Section 80 DD provides for a deduction in respect of the expenditure incurred by an individual or HUF resident in India on the medical treatment (including nursing) training and rehabilitation, etc., of handicapped dependants. For officiating the increased cost of such maintenance, the limit of the deduction has been raised to Rs. 41,000.
Section 80 V: A new Section 80 V has been introduced to ensure that the parent in whose hands, income of a disabled minor has been clubbed under Section 64, is allowed to claim a deduction upto Rs. 40,000 in case of an individual who is suffering from a permanent disability (including blindness) or is subject to mental retardation.
Section 88 B: This Section provides for an additional rebate from net tax payable by a resident individual who has attained the age of 65 years, has been amended and a tax rebate of Rs. 10,000 has been allowed.
In his budget speech on 15th March, 1995, Sh. Manmohan Singh, Finance Minister, Govt. of India made the following anouncements:
Deductions from the total income of handicapped persons under Section 80 V of the Income Tax Act has been raised from Rs. 20,000 to Rs. 40,000.