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Section 80 DD
Indian resident is allowed a deduction for maintenance of a dependent who is PwD. The person must have incurred the expenses for medical treatment, training & rehabilitation of a dependent with disability OR have deposited the amount to LIC or any other insurer for his maintenance.
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Section 80U
An individual who is resident of India, and has disability between 40% to 80% is eligible for deduction to the extent of Rs. 50,000. Above 80% it is 1,00,000. No bills or receipts required to avail this deduction. One needs disability certificate for this.
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Section 80DDB
This is for deduction on medical treatment of certain diseases. Individual or a Hindu Undivided Family can claim this. Diseases covered are: Neurological Diseases, Malignant Cancers, AIDS, Chronic Renal Failure, and Haematological Disorders. Maximum Rs. 40,000 can be deducted from a person’s income. For senior citizens upper limit is Rs. 60,000.
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Section 80 E
If one has taken any loan for higher education for himself or any of his relatives, the entire amount of repayment made towards interest on such loan during the financial year shall be allowed as deduction till the loan is cleared or for eight years, whichever is earlier.
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Section 80 TTA
This provide deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account banks, cooperative banks and post office. The deduction is restricted to Rs 10,000.
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Section 10(14) Rule 2BB
Transport allowance is granted to an employee for commuting between the place of residence and the place of duty. Most of employers pay Rs. 800/- per month as the same is exempted. An employee, who is visually impaired or orthopedically disabled with disability of lower extremities, the exempted amount is Rs. 1600/- per month. (No bills/receipts are required).
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Section 64(1A)
If the income of the minor disabled child treated is not clubbed with the parent, then in that case the child is treated as a separate entity and can file an independent return. For example, individuals can transfer their revenue generating asset like fix deposits in the name of disabled child and the interest earned will not be clubbed with the income of individual. The child with disability, while filing its own return, can claim benefit under section 80U.
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For soldiers with disabilities
Income Tax exemption is available on disability as well as service elements of disability pension. The entire disability pension continues to remain non-taxable.