Income tax concessions for persons with disabilities

INCOME TAX CONCESSIONS

RELIEF FOR DIFFERENTLY ABLED

1. 80DD (Deductions in respect of medical treatment, etc., of handicapped persons) :

   Where an assessee who is resident in India, being an individual of a Hindu Undivided family has, during the previous year, included any expenditure for the medical treatment (including nursing), training and rehabilitation of a person who :-

   1. is a relative of the individual or, as the case may be, is a member of the Hindu undivided family and is not dependent on any person other than such individual or Hindu unindividual or Hindu undivided family for his support or maintenance, and
   2. is suffering from a permanent physical disability (including blindness) or is subject to mental retardation, being a permanent physical disability or mental retardation specified in the rules made in this behalf by the Board, which is certified by a physician, a surgeon, an oculist or a psychiatrist, as the case be, working in a government hospital, and which has the effect of reducing considerably such person’s capacity for normal work or engaging in a gainful employment or occupation.

   The assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of a sum of fifteen thousand rupees only(Rs.15,000/-) in respect of the previous year.Explanation : for the purpose of this section, “Government Hospital” includes a departmental dispensary whether full time or part time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government Servants and members of their families, a hospital maintained by the local authority and any other hospital which arrangements have been made by the Government for the treatment of Government servants.

2. 80 DDA (Deduction in respect of deposit made for maintenance of handicapped dependent) :

   
   

   1. In computing the total income of an assessee who is resident in India, being an individual or a hindu undivided family, there shall be deduction, in accordance with and subject to the provisions of this section, an amount not exceeding twenty thousand rupees (Rs.20,000) paid or deposited by him in the previous year out of his income chargeable to tax, under any scheme framed in this behalf by the Life Insurance Corporation or the Unit Trust of India subject to the conditions specified in sub-section (2) and approved by the board in this behalf.
   2. The deduction under sub-section (94) shall be allowed only if the following conditions are fulfilled, namely :-
      1. The scheme referred to in sub-section (1) provided for payment of annunity or lump sum amount for the benefit of a handicapped dependant in the event of the death of the individual or the member of the Hindu undivided family in whose name subscription to the scheme has been made;
      2. The assessee nominates either the handicapped dependant or any other person or a trust to receive the payment on his behalf, or the benefit of the handicapped dependent.
   3. If the handicapped dependant predeceases the individual or the Hindu undivided family referred to in sub section (2), an amount equal to the amount paid or deposited under sub-section (1) shall be deemed to be the income of the assessee of the previous year in which such amount is received by the assessee and shall accordingly be chargeable to tax as the income of that previous year.
   4. In this section :-
      1. “Government hospital” shall have the meaning assigned to it in the explanation to section 80 DD;
      2. “Handicapped dependent” shall mean a person who-
         1. is a relative of the individual or, as the case may be, is a member of the Hindu undivided family and is not dependant on any person other than such individual or Hindu undivided family for his support or maintenance; and
         2. is suffering from a permanent physical disability(including blindness) or is subject to mental retardation, being a permanent physical disability or mental retardation specified in the rules made by the Board for the purposes of section 80DD, which is certified by a physician, a surgeon, an oculist or a psychiatrist, as the case may be, working in a Government hospital, and which has the effect of refusing considerably such persons capacity for normal work or engaging in a gainful employment or occupation.
      3. “Life Insurance Corporation” shall have the same meaning as in clause (iii) of sub section (8) of section 88;
      4. “Unit Trust of India” means The Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963).

3. 80 DDB (Deduction in respect of medical treatment etc.,) :

   Where an assessee who is resident in India has, during the previous year, incurred any expenditure for the medical treatment of such disease or ailment as may be specified in the rules “made in this behalf by the Board

   1. for himself or a dependent relative, in case the assessee is an individual or
   2. for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

   the assessee shall be allowed a deduction of a sum of fifteen thousand rupees only (Rs.15,000) in respect of that previous year in which such expenditure was incurred :

   Provided that no such deduction shall allowed unless the assessee furnishes a certificate in such form 66b and from such authority as may be prescribed 66c Explanation – For the purpose of this section, “dependent” means a person who is not dependent for his support or maintenance on any person other than the assessee.

4. 80U (Deduction in respect of permanent disability (including blindness) :

   In computing the total income of an individual, being a resident, who, at the end of the previous year is suffering from a permanent physical disability or mental retardation specified in the rules made in this behalf by the board, which is certified by a physician, a surgeon, an oculist or a psychiatrist, as the case may be, working in a Government hospital, and which has the effect of reducing considerably such individual’s capacity for normal work or engaging in a gainful employment or occupation, they shall be allowed a deduction of a sum of forty thousand rupees (Rs.40,000).

   Provided that such individual produces the aforesaid certificate before the Assessing Officer in respect of the first assessment year for which he claims deduction under this section :

   Provided further that the requirment of producing the aforesaid certificate from a physician, a surgeon, an oculist or a psychiatrist, as the case may be, working in a Government hospital shall not apply to an individual who has already a certificate before the Assessing Officer under the provisions of this section as they stood immediately before the 1st day of April,1992.

   Explanation : For the purposes of this section, the expression “Government hospital” shall have the meaning assigned to it in the explanation to section 80DD,

5. 88B (Rebate of Income tax in case of individuals of 65 years and above) :

   An assesse, being an individual resident in India, who is of the age of sixty five years or more at any time during the previous year and whose gross total income does not exceed one hundred and twenty thousand rupees, shall be entitled to a deduction from the amount of income tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of amount equal to 40% of such income-tax.

   Explanation :- For the purposes of this section a, “Gross total income” means the total income computed in accordance with the provisions of this Act, before making any deduction under Chapter VI-A.

   The following section 88B shall be substituted for the existing section 88B by the Finance Act, 1997, w.e.f. 1-4-1998;

6. 88B (Rebate of income tax in case of individuals of 65 years and above) :

   An Assessee, being an individual resident in India, who is of the age of sixty-five years or more at any time during the previous year shall be entitled to a deduction from the amount of income tax (as computed before allowing the deductions under this Chapter) on his total income, with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of ten thousand rupees only (Rs.10,000), whichever is less.