Article discusses Benefits under Income Tax and Profession Tax Act Available to Disabled or Handicapped Persons. Income Tax Act Provides Deduction Under Section 80DD, Section 80DDB and Section 80U and also provide indirect tax benefit under section 64 of the Income Tax Act to Disabled / Handicapped Persons.
In addition to that In most states in India Profession tax exemption is been extended to Disabled or Handicapped Persons and we will discuss the provisions applicable in state of Maharashtra.
As per The Persons With Disabilities Act, 1995 “Disability” means-(I) Blindness; (ii) Low vision; (iii) Leprosy-cured; (iv) Hearing impairment; (v) Loco motor disability; (vi) Mental retardation; and (vii) Mental illness (viii) autism (ix) cerebal palsy (x) multiple disability and “Person with disability” means a person suffering from not less than forty per cent. of any disability as certified by a medical authority;
As per Wikipedia Disabilities is an umbrella term, covering impairments, activity limitations, and participation restrictions. An impairment is a problem in body function or structure; an activity limitation is a difficulty encountered by an individual in executing a task or action; while a participation restriction is a problem experienced by an individual in involvement in life situations. Thus, disability is a complex phenomenon, reflecting an interaction between features of a person’s body and features of the society in which he or she lives.
Page Contents
- 1. Deduction Under Section 80U of Income Tax Act, 1961 for disabled persons
- 2. Deduction u/s. 80DD for expenses on maintenance/ medical treatment of disabled dependent
- 3. Medical treatment of specified ailments under section 80DDB
- 4. Transport allowance Under Section 10(14) Read with Rule 2BB
- 6. Exemption from payment of Profession Tax under Section 27A of Profession Tax Act, Maharashtra State
1. Deduction Under Section 80U of Income Tax Act, 1961 for disabled persons
The Income Tax Act, 1961 provides deduction u/s. 80 in pursuance of which an individual (Indian citizen and foreign national) who is resident of India, and who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 75,000/- and in case of severe disability to the extent of Rs. 1,25,000/-.
2. Deduction u/s. 80DD for expenses on maintenance/ medical treatment of disabled dependent
Government of India has in order to provide some relief to those who have a dependent with disability or sever disability provided some relief’s from Income tax under section 80DD of the Income Tax Act, 1961. Deduction allowed under this section is Rs. 75,000 if disabled dependant is not suffering from severe disability. Deduction allowed goes up to Rs. 1,25,000 if disabled dependant is a person with severe disability.
Deduction not depend on amount of expenses incurred:- Even if your actual expenses on above mentioned disabled dependent relative is less than amount mentioned above you will be eligible to full deduction.
3. Medical treatment of specified ailments under section 80DDB
Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB. The maximum amount of deduction allowed from gross total income is restricted to Rs 40,000 (which goes up to Rs 60,000 if the age of the person treated is 60 years or more and Rs 80,000 if the age of the person treated is 80 years or more) on condition that no medical reimbursement is received from any insurance company or employer for this amount. In case of reimbursement the amount paid should be reduced by the amount received if any under insurance from an insurer or reimbursed by an employer. However wef A.y 2019-20 the above limit of Rs 60000 and Rs 80000 has been increased to Rs 1,00,000
4. Transport allowance Under Section 10(14) Read with Rule 2BB
Employees with visual and orthopaedic disabilities get double the usual tax-exempt transport allowance granted to others. For an employee who is blind or with disability of the lower limbs, the exempted amount is Rs. 3200 per month. Such employees can request their employers to structure their pay so that they get Rs. 3200 a month as transport allowance.
5. No Clubbing of Income of Disabled Minor with Income of his Parents Under Section 64
Although there is no direct deduction under section 64 but income generated by minor child who is disable will not be clubbed with the Income of his parents. As the income of the child is not clubbed the child is treated as a separate Individual and can file his independent Income Tax return with all its benefits. An Individual can transfer their revenue generating asset like fix deposits in the name of disable child and the interest earned will not be clubbed with the income of individual but will be assessed separately, which provides significant scope for tax savings. Further the disable child while filing its own return can claim benefit under section 80U. Clubbing Of Income under the Income Tax Act, 1961 (Section 60 to Section 64)
6. Exemption from payment of Profession Tax under Section 27A of Profession Tax Act, Maharashtra State
Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made in this behalf by the State Government, which is certified by a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital is exempt from Complete amount of professional tax payable. To Claim Exemption individual shall forward the certificate to employer who will produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims deduction under the act. Since Profession Tax is a Matter of state government so a disabled person working in as state where profession tax is applicable can check the respective profession tax law of their state to check if profession tax exemption is exist for them or not. In India In most states the Professional tax is exempted for disable person.
Read Below article for Profession Tax Rates Applicable in Maharashtra and also about exemption from Profession tax in Maharashtra to Handicapped Person with more than 40 % disability or parent of a physically disabled or mentally retarded child – New Profession Tax Rates in Maharashtra & Provisions
(Republished with Amendments)
Author Bio
if child is 90% mental retreaded under if any gov benefit he will earn should it cover taxable income
Govt. Servant disabled children son and daughter both get family pension but after daughter wedding Maharashtra govt. stopped family pension. Government of India modify this rule in 2013 as GR No/33/2012-P&PW (E)
Government of India
Ministry of Personnel, PoGo& Pensions
Department of Pension & Pensioners’ Welfare
New: Explanation 1 – An unmarried son or an unmarried or widowed or divorced
daughter, except a disabled son or daughter, shall become ineligible for family
pension under this sub-rule from the date he or she gets married or remarried.
But Govt. of Maharashtra till date not update this rule. disabled daughter after marriage get pension. so please guidance about this
I am 40% Physical handicap person. I am working in private sector compnay.Can I apply for professional tax connections to the company.
My wife is physical handicapped above 60% got penalty from income tax.Any exemptions to reduce or avoid penalty, pl give opinion
What is Income tax act 194j? up to how much salary this is rebate able? PWD also need to pay this tax?
Hi,
My mother is 40% disabled and she is earning also filled the income tax using 80DD for herself and save tax on it.
Can I use her in dependent and saved income tax using 80DD for myself.
Sir I am a taecher of govt add.school and also physical handicapped person(orthopadiclly).l would like to know tex benefits for me.
Hello,
My father suffered from brain stroke in 2019.and the disability is above 40%.the total expenditure was around 12 lakh during hospitalisation. Out of that 7 lakhs were reimbursed by the employer. Can we claim 1lakh 80ddb tax rebated in AY 2020-2021 on the remaining amount of 5 lakh not reimbursed by the employer.
સર,હું સરકારી વિકલાંગ કર્મચારી છું ધારા ધોરણ મુજબ ના ટકા વિકલાંગ છું.તો મને ફાઇનાન્સિયલ વર્ષ 19-20 માં tranfort allwance બાદ કેટલું મળે? જવાબ આપવા વિનંતી.
Sir,
I am a visually handicapped person working in Central PSU, presently posted at Ranchi, Jharkhand.
Can I avail exemption in Professioal Tax ??
Please inform.
Sir I m parent of mentally retired my son is completed 18 years he is fully dependent on me/wife i want to purchase car carry for him, can i eligible for exemption road tax & other taxes (Maharashtra) if yes please advice how procedure ….Narendra Pawar M.No.8007774656
Hello, the information provided under section 10(14) by you is misleading. Please relook it
I am from Mumbai, My brother is mentally disabled and he is dependent on me, my salary is 11000 but where i am working they are deducting PT from my salary. are they doing right or wrong ?
Sir,
I’m a teacher in Gujarat government aided highschool.I am a handicap person with 50% locomotor disability with a leg .
Question
Can i eligible for transport allowence.
Hi sir
I’m handicap person ear 70% sir muje btaiyega ki govt job mey kya facilities hoti hai or hearings walo ko kiti salary milti hai
Sir mi 63% ph handicapped & chronic neurological conditions treatment chalu ahae to my help & Maharashtra employed
Sir,
I’m a teacher in government aided school.I am a handicap person with 52% locomotor disability with a leg and a hand.I want to get exemption from Professional Tax.
Am I eligible for the benefit of Tax exemption? Please guide me and send a copy of Government Resolution regarding this on my email address to submit the application for exemption in Professional Tax.
Thanking you.
I am a central government salaried employee having a mentally physically challenged 20 year old son. He profoundly retarded (80%) . In maharashtra I was exempted from paying professional tax now I am transferred to madhya pradesh. I would like to know if i am exempted from paying professional tax in state of madhya pradesh ?
want new scheme of professional tax, 2019 whether it is applicable for payment of recovered P Tax from employees
Professional tax relief handicapped employee
Sir, I am 50% disabled ex army, is there any provision for exemption of TDS on FDs
Sir, Am ex army disabled, is there any provision for exemption of TDS on FDs
Sir how do I get the government rule copy for professional tax exemption for 40% disabled person (Maharashtra state govt servant). I am 50% disabled (ex serviceman army)
Is there any exemption towards late remittance interest on balance income tax upto submission of return by Handicapped employees?
Sir I AM 70% ORTHO HANDICAP I AM EMPLOYED POSTOFFICE SIR HAME KITNA REBET MILNA CHAHIYE
PLEASE COMMENT ME SIR
As per section 80A(1) and (2) the aggregate amount of deduction allowable u.s. 80C to 80U can not exceed the Gross Total Income as reduced by Short Term Capital Gains from equity shares etc., (u/s 111A) or any Long Term Capital Gains (u/s 112 or 112A). Hence if the income consists of only Capital Gains, the deduction is denied, which is against the sole purpose of deduction.
Sir my son of age 10th is Low vision with 100% can I get exemption in proffetional tax and income tax
Sir I am disabled with 50% and my spouse has 90% disability and fully dependent on me and unemployed and I am a teacher.Sir what will be tax deduction for me under section 80u and 80dd.Sir please send a relevant letter also if any .
With Regards
Padam Singh