It's April, the month when most people are busy with their income tax filings so we thought we should bring you some news that may be useful for you. For disabled Indians there is a provision for a tax deduction under Sections80U and 80DDB. These benefits are provided to people with disabilities or their family members under the income tax laws of India. Here is how they work.
Section 80U gives tax breaks to people with disabilities, while undersection 80DDB the benefit is given if any dependent family member has a disability.
Under Section 80U, there are two categories in which the benefits are covered.
Under Section 80DD there are two categories in which the tax benefits are covered.
“It is important for disabled people to know the rights and benefits meant for them", emphasizes Jitendra Kumar Dangi, an Ahmedabad-based tutor. "I have found that most times, people lack of access to information about these benefits and this is a major hurdle. As a disabled person I would appreciate it if better loan and tax deduction schemes are introduced.
The tax benefits are available to a person who is certified as a “person with disability” by a competent medical authority. A dependent refers to siblings of the claim seeker, parents, spouse, children or a member of a Hindu Unified Family.
The medical authorities who can certify a person to be disabled include:
Civil Surgeon or Chief Medical Officer (CMO) of a government hospital.§
Neurologist with an MD in Neurology.§
In case of children, a paediatric neurologist with an equivalent degree.§
This should be raised feel some experts.
To claim income tax deduction under Section 80U there is no particular document required. However, it is advisable to keep the disability certificate handy. For illness such as autism or cerebral palsy, Form 10-IA