Income Tax Act has specified benefits for the people equally but with different amount of limits. As person who suffers from disability should also get tax benefits.
Disability means any person suffering at least 40% disability as certified by appropriate medical authorities is defined as disability.
Disability can be Low vision, Blindness, Mental Illness, Hearing Impairment and law of the Government also defines Rigorous disability in which individual suffers from 80% of disabilities called severe disability.
Income Tax defines various sections for persons with disability. Let's understand the importance of it with the help of table;
|Who will get?||Resident Individual /HUF||Resident Individual /HUF||Resident Individual|
|For Whom?||Dependent relative||Self/Dependent relative||Self|
|Amount of Deduction||40% Disability: Rs 75000 80% Disability : Rs 1,25,000||Citizen: RS 40,000 Senior Citizen : Rs 60,000 Very Senior Citizen : Rs 80,000||40% Disability: Rs 75000 80% Disability : Rs 1,25,000|
Note: Relative means Spouse, Children, Siblings of the individual, Parents.
But how to claim deduction under these section and avail the benefits?
- Income tax doesn’t specify any requirements of documentation apart from certificate. The certificate should specify the person’s disability by the proper medical authority.
- One must also submit medical certificate along with Income tax returns.
- And there’s no need to provide bills of the cost incurred on medical treatment or any such other expenses.
- If disability is temporary and requires reassessment after certain period of time then certificate validity starts from assessment year relevant to financial year during it was issued.
- All the above deductions are available only if you are an Indian resident during the previous year. In simple words, these deductions are not applicable to a non-resident.
- In Case the disability assessment certificate has expired, one would still be able to claim such deductions in the year in which the certificate expires. However, a fresh certificate would be required from succeeding year for claiming the benefit U/S 80U.
There are other sections as well which will help you in saving more taxes. While filing your income tax return, be cautious to claim all deductions available to you and achieve maximum tax benefit.