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Tax Benefits & Deductions

Income tax deductions and financial benefits available for persons with disabilities and their families in India.

₹1.25L
Max Deduction (Severe)
₹75K
Standard Deduction (80U/80DD)
No Limit
Medical Expense Deduction

Income Tax Deductions

Direct tax savings and deductions available under the Income Tax Act

Section 80U Deduction

For Persons with Disabilities

Direct income tax deduction available to individuals with disabilities certified by medical authorities.

Deduction Amount

₹75,000 for 40%-79% disability | ₹1,25,000 for 80%+ severe disability

Eligibility

Valid disability certificate from recognized medical authority required

Benefits

Direct reduction in taxable income, no upper income limit

Tax Savings Example

For 30% tax bracket: Save ₹22,500 (40-79% disability) or ₹37,500 (80%+ disability) annually

Section 80DD Deduction

For Dependents with Disabilities

Tax deduction for expenses incurred on the medical treatment, training and rehabilitation of a dependent with disabilities.

Deduction Amount

₹75,000 for 40%-79% disability | ₹1,25,000 for 80%+ severe disability of dependent

Who Can Claim

Parents, spouse, siblings, or legal guardians of persons with disabilities

Coverage

Medical treatment, training, rehabilitation, and insurance premiums

Additional Benefit

Can also claim actual medical expenses if higher than fixed deduction

Additional Tax Benefits

Other income tax exemptions and benefits available

Medical Expenses

  • • 100% deduction for medical treatment expenses
  • • No upper limit on actual medical expenses
  • • Includes treatment, surgery, therapy costs
  • • Assistive devices and equipment covered

Choose between fixed deduction (80U/80DD) OR actual expenses - whichever is higher

GST Concessions

  • • Reduced 12% GST on assistive devices
  • • Nil GST on lifesaving medical equipment
  • • Lower GST rates on mobility aids
  • • Special rates for hearing and visual aids

Saves additional costs on purchase of assistive technology and medical equipment

Investment Exemptions

  • • Capital gains exemption on sale of assets
  • • Special provisions for disabled individuals
  • • Extended time limits for reinvestment
  • • Relaxed conditions for certain exemptions

Consult tax advisor for specific investment benefits and long-term capital gains exemptions

How to Claim Tax Benefits

Step-by-step process to claim income tax deductions

1. Get Disability Certificate

Obtain valid disability certificate from recognized medical authority with percentage of disability.

Apply for Disability CertificateApply for UDID Card

2. Maintain Records

Keep all medical bills, treatment receipts, and expense documentation for tax filing.

3. File ITR

Claim deductions while filing Income Tax Return using appropriate sections (80U/80DD).

4. Get Refund

Receive tax refund or pay reduced tax amount based on claimed deductions.

Important Notes & Guidelines

Documentation Requirements:

  • Valid disability certificate from medical board/authority
  • UDID (Unique Disability ID) recommended
  • Medical bills and receipts for expense claims
  • Form 10-IA for Section 80DD claims

Key Conditions:

  • Cannot claim both 80U and 80DD for the same person
  • Disability percentage must be 40% or above
  • Benefits available to both resident and non-resident Indians
  • No income limit for claiming these deductions

Professional Advice:

Consult a qualified tax advisor for complex cases, especially for claiming medical expenses versus fixed deductions, and for guidance on latest amendments to tax laws.

NGO Support for Tax Benefits

Get direct assistance from specialized NGOs for tax benefit applications

Office of the Chief Commissioner for Persons with Disabilities
NGO Support

Quasi-judicial body for rights protection and grievance redressal

ASTHA
NGO Support

National disability helpline and policy guidance

ADAPT (Able Disabled All People Together)
NGO Support

Pioneering organization for comprehensive disability support

Upper Colaba Road, Colaba, Mumbai - 400005
Relief India Trust
NGO Support

PAN/tax documentation support for disability benefits

NGO Darpan
NGO Support

Database of all registered NGOs in India, Track NGO activities, funding, and compliance, Apply for NGO registration (FCRA, etc.)

NGO Darpan itself is an online portal and doesn't have public walk-in offices
Tata Sons Initiative
NGO Support

Employment for disabled

Tata Bursary Trust
NGO Support

Financial Bursary for the physically and sensory disabled by Tata Trusts - scholarships