Hi Srinivas,
Can you please provide tax exemptions for visually challenged people in
India? Can blind people get tax reductions in the purchase of motor
vehicles? Regards,
-Original Message-
From: AccessIndia [mailto:accessindia-boun...@accessindia.org.in] On Behalf
Of srinivas.karnati
Sent: Thursday, March 07, 2013 11:20 AM
To: accessindia@accessindia.org.in
Subject: Re: [AI] quiry pertaining to income tax
dear sir: I am pasting below the section 80DD for your information. please
read and go through it.
treatment of a dependent who is a person with disability (section 80DD):
Under section 80DD, where an employee, who is a resident in India, has,
during the previous year-
(a) incurred any expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependant, being a person with disability;
or
(b) paid or deposited any amount under a scheme framed in this behalf by the
Life Insurance Corporation or any other insurer or the Administrator or the
specified company subject to the conditions specified in this regard and
approved by the Board in this behalf for the maintenance of a dependant,
being a person with disability, the employee shall be allowed a deduction of
a sum of fifty thousand rupees from his gross total income of that year.
However, where such dependant is a person with severe disability, an amount
of one hundred thousand rupees shall be allowed as deduction subject to the
specified conditions.
The deduction under (b) above shall be allowed only if the following
conditions are fulfilled:-
(i) the scheme referred to in (b) above provides for payment of annuity or
lump sum amount for the benefit of a dependant, being a person with
disability, in the event of the death of the individual in whose name
subscription to the scheme has been made;
(ii) the employee nominates either the dependant, being a person with
disability, or any other person or a trust to receive the payment on his
behalf, for the benefit of the dependant, being a person with disability.
However, if the dependant, being a person with disability, predeceases the
employee, an amount equal to the amount paid or deposited under sub-para (b)
above shall be deemed to be the income of the employee of the previous year
in which such amount is received by the employee and shall accordingly be
chargeable to tax as the income of that previous year.
5.5.7.2 Deductions in respect of a person with disability (section 80U):
Under section 80U, in computing the total income of an individual, being a
resident, who, at any time during the previous year, is certified by the
medical authority to be a person with disability, there shall be allowed a
deduction of a sum of fifty thousand rupees. However, where such individual
is a person with severe disability, a higher deduction of one lakh rupees
shall be allowable.
DDOs should note that section 80DD deduction is in case of the dependent of
the employee whereas section 80U deduction is in case of the employee
himself. However under both the Sections the employee shall furnish to the
DDO following:
1. A copy of the certificate issued by the medical authority as defined in
Rule 11A(1) in the prescribed form as per Rule 11A(2) of the Rules. The DDO
has to allow deduction only after seeing that the Certificate furnished is
from the Medical Authority defined in this Rule and the same is in the form
as mentioned therein.
2. Further In cases where the condition of disability is temporary and
requires reassessment of its extent after a period stipulated in the
aforesaid certificate, no deduction under this section shall be allowed for
any subsequent period unless a new certificate is obtained from the medical
authority as in 1 above and furnished before the DDO.
3. For the purposes of section 80DD and 80 U some of the terms defined are
as under:-
(a) "Administrator" means the Administrator as referred to in clause (a) of
section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal)
Act, 2002 (58 of 2002) ;
(b) "dependant" means-
(i) in the case of an individual, the spouse, children, parents, brothers
and sisters of the individual or any of them;
(ii) in the case of a Hindu undivided family, a member of the Hindu
undivided family, dependant wholly or mainly on such individual or Hindu
undivided family for his support and maintenance, and who has not claimed
any deduction under section 80U in computing his total income for the
assessment year relating to the previous year;
(c) "disability" shall have the meaning assigned to it in clause (i) of
section 2 of the Persons with Disabilities (Equal Opportunities, Protection
of Rights and Full Participation) Act, 1995 (1 of 1996) and includes
"autism", "cerebral palsy" and "multiple disability" referred to in clauses
(a), (c) and (h) of section 2 of the National Trust for Welfare of Persons
with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
Act, 1999 (44 of 1999);
(d) "Lif
