CA Sandeep Kanoi

CA Sandeep KanoiAs 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;

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.

The Government has  passed Rights of Persons with Disabilities Bill 2014 in Lok Sabha but same could not be passed in Rajya Sabha yet. This Bill is an  improvement over the 1995 law.

The Bill has Proposed the following key benefits:-

  1. Increase reservation for disabled persons in public sector jobs from existing 3% to 5% and reserve seat for them in higher educational institutions.
  2. broaden the ambit of disability from seven to 19 sub-categories
  3. Bill makes provisions to prevent people with disabilities from harassment while getting disability certificates, the proposal legislation also provides for stringent punitive measures under which anyone violating the provisions could face from six months to five years of imprisonment and a fine from Rs 10,000 to five lakhs.

In this article we will discuss the Benefits under the Income Tax and Profession Tax Act Available to Disabled or Handicapped Persons. Income Tax Act Provides Deduction Under Section 80DD, 80DDB and 80U and also provide indirect tax benefit under section 64 of the Income Tax Act. 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.

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. 50,000/- and in case of severe disability to the extent of Rs. 100,000/-.

Budget 2015 proposed to amend  section 80U  to raise  limit of deduction in respect of a person with disability from Rs. 50,000/- to Rs. 75,000 and for person with severe disability from one lakh rupees to one hundred and twenty five thousand rupees.

For More Details Please Visit the following Link :-  Deduction U/s. 80U for disabled persons

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. 50,000 if disabled dependant is not suffering from severe disability.  Deduction allowed goes up to Rs. 1,00,000 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.

Budget 2015 proposed to amend  section 80DD  to raise  limit of deduction  in respect of a person with disability from fifty thousand rupees to seventy five thousand rupees and from one lakh rupees to one hundred and twenty five thousand rupees in respect of a person with severe disability.

Read more on Deduction u/s. 80DD –  Deduction u/s. 80DD for expenses on medical treatment of disabled dependent

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) 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 insurerer or reimbursed by an employer.

Budget 2015 proposed to amend section 80DDB wef FY 2015-16  to provide for a higher limit of deduction of upto eighty thousand rupees, for the expenditure incurred in respect of the medical treatment of a “very senior citizen”. A “very senior citizen” is proposed to be defined as an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year.

Read More on Section 80DDB – Deduction under section 80DDB with FAQ

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. 1,600 per month. Such employees can request their employers to structure their pay so that they get Rs. 1,600 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.

Read More- 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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54 responses to “Income / Profession Tax Benefits for Disabled / Handicapped Persons”

  1. 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

  2. Ravindra manohar pandit says:

    Sir my daughter of age 16th is mentally retarded with 55% can I get exemption in proffetional and income tax

  3. 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.

  4. 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

  5. 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.

  6. 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 ??

  7. Mohseen says:

    If Any employees son physical handicap, so can employee exempted to Professional tax ?

  8. s p singh says:

    Sir I am govt emploly of let me know what is disability and what amount addmissible

  9. A.S.BHAGYALAKSHMI, Coimbatore says:

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

  10. v g sankar says:

    I am bank employee do I have professional tax exemption in Andhra pradesh

  11. 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.

  12. 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.

  13. a s nerkar says:

    i am visually impired but exumption are not sanctioned to me because of affected area is both eyes

  14. 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

    • M.RAMASUBRAMANIAN says:

      My daughter is physically handicapped girl and i am working as a teacher in private school. I wanted to know any exemption in Professional Tax Exemption
      eligible for me ?

  15. 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.

  16. vijay says:

    Sir i iam handicapped employe 40 percent i exception proffesion tax in gujarat

  17. MoxBhardwaj says:

    Hello sir i am physiclly handicapped person with 90% govt service my gross salary is 36500 muje tax me kitni choot milegi..

  18. 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.. ?

  19. 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

  20. 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?

  21. 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.

  22. DHANANJAY SURVASE says:

    sir,i am handicapped person ,I want information about exemption of stampduty in maharastra

  23. 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

  24. 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

  25. 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

  26. 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 .

  27. suruk ali says:

    I am a very poor & PH person , how I can get economical help /

  28. 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

  29. 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

  30. 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.

  31. Rajkumar Kadam says:

    Sir
    how get convince allowance in msedcl maharashtra .

  32. 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

  33. 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.

  34. 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.

  35. 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.

  36. dr manish b agrawal says:

    Resp sir
    Ihave quart wheather road tax exemption is for handicapped person or for vechical

  37. 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

  38. 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.

  39. 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

  40. Bhim Chand says:

    Sir Please tell me transport allowance.

  41. 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

  42. 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.

  43. Rawal Singh Bhati says:

    Mr. Abdul yes CBDT Notify the new limit 3200 for disable for A-Y 16-17 [fy 15-16]

  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. Nemichand meel says:

    Is disabilty pension from armed sevice liable for tax

  48. 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

  49. B.K.Jammarh, Jaipur says:

    Thans sir.

  50. 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

  51. 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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