Income Tax Deductions for Persons with Disabilities (80U, 80DD and 10[14])

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Income Tax Deductions for Persons with Disabilities (80U, 80DD and 10[14] – Allowances)
Income Tax Deductions for Persons with Disabilities (80U, 80DD and 10[14])

TYPEParticularsThreshold Limits
Section 80U Tax Deductions for Persons with Disabilities80DDDeduction allowed to resident Individual and HUF for:

a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability

b) Any amount paid or deposited under an 80DD approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions).

Rs. 75,000
(Rs. 1,25,000 in case of severe disability)
Section 80U Tax Deductions – Dependent who is a person with disability80UA resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability

[as defined under 80U Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]

Rs. 75,000
(Rs. 1,25,000 in case of severe disability)
Transport Allowance10(14)Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of dutyUp to Rs. 1600 per month
(Rs. 3,200 per month for blind and handicapped employees)

 

Example

S.No.ParticularsRupees
1Gross Salary4,20,000
2Amount spent on treatment of a dependant, being person with disability (but not severe disability)7000
3Amount paid to LIC with regard to annuity for the maintenance of a dependant, being person with disability( but not severe disability)60,000
4GPF Contribution25,000
5LIP Paid10,000
6Interest Income on Savings Account12,000

 

Computation of Tax

S.No.ParticularsRupees
1Gross Salary4,20,000
2Add: Income from Other Sources Interest Income on Savings Account12,000
3Gross Total Income4,32,000
4Less: Deduction U/s 80DD or 80U (Restricted to Rs.60,000/- only)75,000
5Less: Deduction U/s 80C (i) GPF Rs.25,000/- (ii) LIP Rs.10,000/- = Rs.35,000/-35,000
6Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to Rs 10000/-)10000
7Total Income3,12,000
8Income Tax thereon/payable (includes Rebate of Rs 2500 as per Section 87A)600
9Add: (i). Education Cess @2% (ii). Secondary and Higher Education Cess @1%12 6
10Total Income Tax payable618
11Rounded off to620

 

Download Circular – (PDF, 278KB) 

Circular No: 29/2017; Date: 5th December, 2017
Ref: https://www.incometaxindia.gov.in

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