Many people with disabilities may be paying more tax without knowing different tax deductions and benefits of IT act. More often people with disability are not aware of such deductions and benefits and end up in paying more tax than the actual liability.
IT act specifically give three different deductions for a disabled person in India. There is no age limit to claim tax deduction for disable person. If you are a senior citizen then a higher deduction will be available to you.
Below we have discussed various provisions of tax deductions for disabled person in India. If you have any doubt or require any clarification then we request you to use our comment form below the article for posting your query and feedback.
Flat or Fixed Deduction for a Disabled Person
Section 80U allows a disabled person to claim a flat deduction of 50000 rupees for having disability of at least 40%. If the disability is more than 40% and up to 80% then also he or she can claim this deduction of 50000 rupees.
If disability is 80% or more than that then the person will be eligible for higher tax deduction under section 80U of 100000 rupees.
To claim such tax deduction the disabled person has to get a medical certificate from any one of the medical authority certifying his or her disability. If the certificate needs renewal then it has to be renewed to claim tax deductions.
The disabled person has to be resident in India. Foreign citizen being resident in India can also take benefits of section 80U.
Tax Deduction of medical expenses spent for a disabled person
If you have a disabled person being your dependent spouse, child, brothers and sisters or parents and you have incurred medical expenses for their treatment then that amount will be eligible for tax deduction under section 80DD.
Please remember this is not the deduction for medical expenses of your own being you as a disabled person. If any one of your dependent as mentioned above is a disabled person then the amount spent for them will be eligible for tax deduction here.
Similar to section 80U, here also you will be eligible for flat or fixed deduction of 50000 rupees if the dependent has less than 80% disability. If the dependent has 80% or more disability then deduction of 100000 rupees can be claimed.
Money paid or deposited with any insurer for the benefit of a disabled dependent will also be eligible for tax deduction under section 80DD.
To claim tax deduction under this section the person has to get a medical certificate from the medical authority stating the disability in it.
Also Read: Tax deduction for medical expenses spent on handicapped dependent with disability – section 80DD
Tax deduction for Specified Illness
Specified illness such as neurological disorders, cancer, AIDS, chronic kidney failure and hematological disorders are eligible for tax deductions if you have spent any money for the treatment of these diseases.
Section 80DDB of IT act allows you this tax deduction. If you have spent money toward for medical expenses of specified illness for treatment of yourself, dependent spouse, child, parents, brothers and sisters then you will be eligible for tax deduction.
Lower of the amount spent towards medical expenses or 40000 rupees whichever is lower will be allowed as income tax deductions under section 80DDB. If the person for whom money has been spent is a senior citizen then tax deduction limit will go up to 60000 rupees.
To claim tax deduction under section 80DDB, you are required to get a certificate from a doctor working in government hospital in the specified format.
If you being a disabled person working in an organization as an employee then in addition to tax deductions you are also eligible for transport allowance of 1600 rupees per month as exemption from the amount that you are getting as transport allowance from employer. The net left out after deducting 1600 rupees per month will be taxable in the disabled person’s hand.
Also Read: Detail Provisions of Section 80DDB – Tax deductions in respect of medical treatment