Deductions in the Income Tax Act for a person with disability

There are special tax concessions in the Income Tax Act for disabled persons.

Section 80 U allows a deduction of Rupees 50,000 from the income of the assessee with disability. To avail of this concession a disability certificate issued by a physician working in a government hospital has to be annexed with the tax assessment form. For persons with severe disability, the deduction is of Rupees 1,00,000, with effect from 01 April 2010.

Section 80 DD allows deductions of Rupees 50,000 to a parent or relative upon whom the disabled is dependent for maintenance which includes medical treatment of the disabled person. If the dependent is a person with severe disability, then a deduction of Rupees 1,00,000 is allowed (With effect from 1 April 2009).

For a visually challenged person to qualify for the above exemptions, he/she has to meet the following criteria:

Blindness: Blindness shall be regarded as a permanent physical disability, if it is incurable and falls in any of the categories specified below, namely :

Indirectly connected provisions

Deductions are allowed to persons making donations to registered trusts and societies doing work for the handicapped. The relevant sections are 80G and 80GGA. Under Section 80G deduction from Income is allowed at 50 percent of the amount donated to the eligible institution. The amount on which deduction is claimed under the section, however, cannot exceed 10 percent of the gross total income exemptions. This is only in respect of certain specific projects for research, development etc. Deductions in respect of donations may be claimed by all assesses, ie, individuals, companies etc.

Exemptions in Custom Duty

Customs: Specified goods when imported by any institution for the blind or deaf are exempt from duty.

• Braille printer or Braille embosser or Braille display designed for computer systems are exempt from payment of duty. (Notification No. 20/99 Customs S.No. 194)
• Closed Circuit Television System for use as low-vision aid for visually disabled persons can be imported at a concessional rate of duty of 15 per cent. (Notification No. 20/99 Customs S.No. 203)
• Audio cassettes, if recorded with material from books, newspapers , or magazines for the Blind are exempt from duty. (Notification No. 20/99 Customs No. 239)
• Certain other special goods imported by a disabled or disabled person for his personal use are exempt from duty. (Notification No. 20/99 Customs S.No. 278)

Download custom notifications

Exceptions In Excise Duty

The Central Government exempts all goods manufactured by an institution which:

• is primarily engaged in the rehabilitation of physically or mentally handicapped persons.
• employs primarily, physically or mentally handicapped persons for its manufacturing activity.
• is receiving financial assistance from the Govt. of India, Ministry of Social Welfare for such rehabilitation.

Download details of excise exemptions