prpri Income / Profession Tax Benefits for Disabled / Handicapped Persons Income / Profession Tax Benefits for Disabled / Handicapped Persons

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.

Deducation Under Section 80U of Income Tax Act 1961 For Disable Persons

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)

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79 Comments

  1. Laxmi says:

    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.

  2. Namarta Thakur says:

    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.

  3. Sunil says:

    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.

  4. Tuhin Kumar Chakrabarti says:

    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.

  5. Narendra Dhanraj Pawar says:

    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

  6. Saheb says:

    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 ?

  7. Ashvin says:

    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.

  8. Manthan bobde says:

    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

  9. Vijay atamram Badgujar says:

    Sir mi 63% ph handicapped & chronic neurological conditions treatment chalu ahae to my help & Maharashtra employed

  10. Santosh Shelke says:

    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.

  11. Shanthi Srikumar says:

    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 ?

  12. Deepak Suryawanshi says:

    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)

  13. CA. M. Lakshmanan says:

    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.

  14. Padam Singh says:

    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

  15. mathew varghese says:

    tax relief for orthopaedically handicapped to the extent of 40% as certified by Govt. doctor whether applicable under 80u an how far back one can go for relief in terms of Ass years.

  16. Pooja shah says:

    Persons with disabilities act does not recognise physical handicapped person as disability for the purpose of deduction under sec 80DD. Under wich sub section can physically handicapped person having no hand from birth birth be eligible for deduction. Please help

  17. Nidhi Surve says:

    Sir,
    I am CG employee and my father is handicap ( 60% Blind). Will I get Income Tax Exemption under Section 80 DD or not. Also MSPT Exemption also.

  18. Mayank says:

    I am disable person forty five percentage hearing impaired l am govt. Servant. my salary is about 3 lac in a year 2015-2016.i have to pay professional tax or disable person exempted ??

  19. A.S.BHAGYALAKSHMI, Coimbatore says:

    My Daughter is physically handicapped and Registered in Govt. I wanted to know any
    Exemption in Professional Tax.

  20. SAI says:

    I am a Orthopedically hadicapped (79%) working in Central Government Department, Karnataka state . I got Transport Allowance double. But My employer has deducted professional tax. Iam eligilble for exeption of profession tax. My employer says you are getting TA double but not eligile for Professional tax. So please help me any rules are having please send to my mail. Thank u Sir.

  21. Deepak Srivastava says:

    My 16 years old mentally retarded son goes to rehabilitation centre by hired auto to and fro for which I pay monthly Rs.3400/-.Kindly suggest me under what rule I may have rebate in incometax for transport allowance for dependent disabled child.Your early reply will decrease my some burdon for which I will be thankful to you.

  22. Bhupendra says:

    Sir my mother government employee and handicapped for 40% above from left leg so tax benefit for 80u section in 2016 2017 please sir my help

  23. shyam vyavhare says:

    Sir, mai state gov. employe hu. mere pitaji muz par nirbhar hai or vah handicapped hai . unki medical treatment pe maine Rs. 4 Lakh karcha kiya hai muze medical reimbursment mila hai. muze kitni amount tak tax nahi lag sakta. or medical treatment tax free hai kya.

  24. Ankur says:

    Hello Jagdish … Im also working in central govt im also hearing challenged with 50% loss billateral…but they are not considering me to avail double transport allowance ??? I dont knw why kindly help if u hav any specific order or somthing.. ?

  25. JANKI VARMA says:

    I am an right above knee amputee with other disabilities. I hv 80% permanent disability certificate. Is there anyways I can get any tax benefits, disability pension or transport allowances as I am wheelchair bound person.

    How and where or whom can I contact to avail any benefits? Pls anyone advise. Mail me to janki.varma@gmail.com

    Thank you

    Janki Varma

  26. Vineet says:

    Hi sir, I am eligible for 80U. Now i want to buy calliper, which is costing me 60000. Is there any way that i can get exemption for this.

    Also i have bought for my wife also in 60000. Will i get any benefit in tax for this also?

  27. Samit Kumar says:

    I am physical handicapped for right leg with 80% disability and got rebate under 80 U.
    but as per 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 and “Person with disability” means a person suffering from not less than forty per cent. of any disability as certified by a medical authority; my office says I am not cover this time for rebate.

  28. sagar Charude says:

    Dear sir
    I m government employee worked in pune suffers with disabilities upto 60 %
    .My query is that whether there is benefits in stamp duties while registration. pls inform urgently

  29. CP SRIVASTAVA says:

    Mera bete ko ” Cerebral pailcy ” born se hi hai…. Aaj 7 saal ka hai..
    No stand, no sit & no some says & no some talking….only on bed rest
    Born to 7 years tak kafi ilaj karaya, faiyda nahi hua
    Main civil defence me work karta hun…. Yearly our gross payment 3,50000/-
    Kya kare ki incometax men chut milye…. Aur ilaj bhi chal raha hai
    Karpya mera marg dikhane ki karpa Karen

  30. Dr.Rama Rao says:

    sir, i am suffering from senile (old age) deafness and my wife visually handicapped and i am claiming tax benefit for her. can I claim benefit for both of us under section 80 u

  31. Darshan Kulkarni says:

    If person take rebates of professional tax for his handicap girl but after her marriage can he continue take rebates of professional tax .

  32. satish janardhan alkute says:

    dear sir
    iam a diploma in mechanical engineer in january 2014 i have stroke attack in this my left side paralyzed my disability is 71% left side not work butbefore this happen im working in parirobotics company pune in r and d department company will consider me and take me return to service in feb 2015 same work with halp of someone
    i will do my work better
    i want to know under section 80 i have take income tax benifit please guide me i will so happy

    satish alkute
    9767891553

  33. satish janardhan alkute says:

    dear sir
    iam a diploma in mechanical engineer in january 2014 i have stroke attack in this my left side paralyzed my disability is 71% left side not work butbefore this happen im working in parirobotics company pune in r and d department company will consider me and take me return to service in feb 2015 same work with halp of someone
    i will do my work better
    i want to know under section 80 i have take income tax benifit please guide me i will so happy

    satish alkute
    9767891553

  34. Chandan kunar says:

    I am a visually handicapped person & the doctor/medical board declared “30-40%( forty percent)” of relevant disability
    Kindly clarify me that whether I am applicable for benifits for PWD as my disability percentage is given as “30-40% (fourth percent)” in the disability certificate.

  35. ASHISH LONARE says:

    My Mother got paralysis in 2008 & I have taken Disability certificate under form IV wherein Disability mentioned as “PHYSICAL IMPAIRMENT’ & disease diagnosed is CVE RT HEMIPARESIS with 55% disability.

    I am making expenses towards her treatment can I get Relief under Section 80DD on income tax act.
    The said disability does not fall under the 7 categories defined under clause (i) of section 2 by the “Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”.

    It includes the following:

    · Blindness

    · Low vision

    · Leprosy-cured

    · Hearing impairment

    · Locomotor disability

    · Mental retardation

    · Mental illness

    · Autism

    · Cerebral palsy

    · Multiple disabilities

    Please advise
    My Mobile No: 9822920292

  36. Kalyan Das says:

    Sir, I have a question.

    My father has suffering from brain stroke happened in several time and now he is 85% disable. For getting the tax benefit could I submit form 10-IA certify from Neurology Doctor having a degree of MD attached with Institute of Neuroscience, Kolkata or it is mendatory to required certificate from Govt. hospital Medical Board. Please reply so can I take the benefit for assessment year 2014-15.

  37. JAGDISH PRASAD says:

    Hello sir,

    I am a hearing challenged employee of central government and receiving double transport allowance from 19.02.2014. can I claim full exemption of double transport allowance from income as it is already exempted in case of blind and orthopedically handicapped employees.

  38. Surjeet says:

    Dear sir.
    I would like to know whether conveyance allowance for physically handicapped has been increased or retained at 1600 rupees.
    Medical allowances were 15000 thousand last year has the
    Limit been increased.

  39. George says:

    Sir
    I am a hadicapped (60%) working in a CPSU. My employer had deducted professional tax ,for the first time , in March. Inspite of my request ,it has not returned the amount till date or deposited the amount to Govt. .What shall i do now.The DDO say its software error and can’t do anything.
    Also , I have declared and claimed LIC premium amount in “annual investment declaration” and agreed to produce original receipt in Dec., when the premium is due.
    Here again, the DDO is not considering the LIC for deduction as its proof is not given.
    Last year there was no such problem. This year DDO put all blame on software and do nothing.Please guide ,I would be grateful.Thank you
    George

  40. D. B. Bharati says:

    Hello Sir,
    I have few queries:
    1. whether the property transferred or gifted by a handicapped person in favour of his or her relatives is taxable? Up to what extent?
    2. If handicapped person makes a will then is it taxable to the recipient?
    3. Can a handicapped person makes changes in property agreement by adding names of his or her relatives?
    Kindly reply as early as possible.
    Thanks.

  41. Arun says:

    Hi,

    I’m orthopaedicall disabled with 45% if i purchase a car can i get tax exemption if i get it is it the RTO tax? please answer me thank you

  42. Romit says:

    Hello,

    Would like to know that my wife and my father both are hadicapped with 40% & 50% both are dependent on me. I am working in govt. organisation. so please tell me is i am able for Professinal tax exemption as well as for any TA.

    Regards,
    Romit

  43. Udhayakumar says:

    Transport Allowance exemption to be doubled for disabled employees!

    Exemption for transport allowance is to be increased from Rs.1600/- per month to Rs.3200/- per month vide [Notification No. 39/2015/F. No.142/02/2015-TPL] Dt.13/04/2015,New Delhi

    It is 1600 for normal employee, and 3200 for disabled cases.

  44. suresh says:

    Hello sir ,

    I want to know benefits from government in budget of 2015 for an handicapped person.

    Please also provide me a link for more information .

    Thank you .

  45. abdul says:

    Hello,
    Yes My Question Also For Normal People Transport Allowance Doubled from 800 to 1600 ? What About Disability People Transport Allowance 1600 to 3200 please reply confused ???

    also give the link of source from you answered

  46. priyakant shah says:

    SIR
    THNKS FOR GOOD INFORMATION.I WANT CLARITY FOR AGE LIMIT IN INCOMETAX ACT AND PROFFESSIONAL TAX ACT.IF DEFERED WHAT IS REMEDY/

  47. mohana says:

    Hi,

    Thanks for all the information that you have sharing pertaining to Indian income tax. I would like to know about double taxation law which is applicable for those who travelled onsite.

    Regards,
    Mohana A K

  48. Rajendra says:

    Hello,

    Yes My Question Also For Normal People Transport Allowance Doubled from 800 to 1600 ? What About Disability People Transport Allowance 1600 to 3200 ? May be it should be Doubled …

    Regards
    Rajendra

  49. Vijayakumar says:

    Hello,

    Would like to know if there is a change in exemption limits of Transport allowance Under Section 10(14)for Disabled/Handicapped persons consequent to the revisio of Transport Allowance from Rs 800 to Rs 1600 for others.

    Vijayakumar

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