Budget 2016 – Disability Benefits
Highlights of Budget 2016 – for persons with disabilities; Tax free under Niramaya’ Health Insurance and Assistive devices and aids (BCD).
List of tax
80DD AND 80U : Income Tax Benefits for Persons with Disability
Section 80DD and 80U are the two segments of the same purpose – To avail Tax Deductions for the differently abled people.
Income Tax 80DD Deduction: Dependant who is a Person With Disability
Income Tax 80DD Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability
Income Tax 80U Deduction for Persons with Disabilities
Income Tax 80U Deduction for Persons with Disabilities – In computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of fifty thousand rupees
10D : Life Insurance Policies of Persons with Disability
Raising the limit of percentage of eligible premium for life insurance policies of persons with disability or disease
Excise Duty Concession for Persons with disabilities
Concessional rate of excise duty of 8% as against the applicable rate of 16% and 24% on cars being able to be driven by the physically handicapped, suitably designed to be able to be driven by physically handicapped
Section 80U Tax Rebate (India) : Persons with Disabilities
Disabled persons can get a flat deduction on Income Tax on producing their disability certificate. If disability is severe Rs 1 lakh can be claimed else Rs 50,000
Empowerment for the Differently Abled
The degree of evolvement of a society is gauged by the manner in which it cares for those on its fringes or those placed at any kind of disadvantage vis-a-vis the rest of society at large due to force of circumstances such as birth, age or disability. A truly compassionate society makes allowances for such infirmities in a non-intrusive, participative and sensitive manner, ensuring equal opportunities to all by providing a level playing field.
Concessions on Taxes and Duty
There are special tax concessions in the Income Tax Act for disabled persons. Section 80 U allows an exception of Rupees 40,000 from the income of the assessee with disability. To avail of this concession a disability certificate issued by a physician working in a government hospital has to be annexed with the tax assessment form.
Exceptions in Excise Duty
The Central Government exempts all goods manufactured by an institution which is primarily engaged in the rehabilitation of physically or mentally handicapped persons. Employs primarily, physically or mentally handicapped persons for its manufacturing activity and receiving financial assistance from the Govt. of India, Ministry of Social Welfare for such rehabilitation,