Tax Benefits
Income tax deductions and exemptions for persons with disabilities and their families
Max Deduction
₹1.5L
Section 80DD
Severe Disability
₹1L
Additional benefit
Self Assessment
₹75K
Section 80U
Medical Expenses
₹40K
Section 80DDB
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Tax Benefits for Persons with Disabilities
The Income Tax Act provides various deductions and exemptions for persons with disabilities and their families to reduce financial burden. These benefits include deductions for medical expenses, maintenance costs, insurance premiums, and special allowances. The tax benefits aim to support the additional costs associated with disability and promote financial inclusion.
Multiple Sections
80U, 80DD, 80DDB cover different aspects
Self & Dependents
Benefits available for self and dependent family members
Documentation
Medical certificates and receipts required
Key Tax Deduction Sections
Major Income Tax Act provisions for disability-related benefits
Section 80U
Self-Assessment by Person with Disability
Normal Disability:₹75,000
Severe Disability:₹1,25,000
Eligibility:
Person with disability (40%+ certified)
Resident individual only
No income limit
Medical certificate required
Section 80DD
Dependent with Disability
Normal Disability:₹75,000
Severe Disability:₹1,25,000
LIC Premium:₹1,50,000
Covers:
Maintenance expenses
Medical treatment costs
Training & rehabilitation
LIC premium for dependent
Section 80DDB
Medical Treatment Expenses
Below 60 years:₹40,000
Above 60 years:₹1,00,000
Specified Diseases:
Neurological diseases
Cancer treatment
Kidney & liver diseases
Blood disorders
Additional Tax Benefits
Other tax advantages and exemptions for persons with disabilities
Vehicle & Property Benefits
Motor Vehicle Exemption
Road tax and registration fee exemption in most states
Property Tax Relief
Reduced property tax rates in many municipal corporations
Stamp Duty Concession
Reduced stamp duty on property purchase in some states
Parking Fee Waiver
Free parking at public places and commercial complexes
Financial Benefits
Bank Interest Exemption
Higher exemption limit on savings bank interest
TDS Exemption
Higher threshold for TDS deduction on various income sources
GST Exemption
GST exemption on assistive devices and equipment
Customs Duty Relief
Reduced customs duty on imported assistive devices
Tax Savings Calculation Examples
Real-world examples of tax benefits for different scenarios
Example 1: Self Assessment (80U)
Scenario:
Person with 60% visual impairment, Annual income: ₹8 lakh
Gross Income:₹8,00,000
Standard Deduction:₹50,000
80C Deduction:₹1,50,000
80U Deduction (Severe):₹1,25,000
Taxable Income:₹4,75,000
Tax Saved:₹37,500
Example 2: Dependent Care (80DD)
Scenario:
Parent caring for child with autism, Annual income: ₹12 lakh
Gross Income:₹12,00,000
Standard Deduction:₹50,000
80C Deduction:₹1,50,000
80DD Deduction:₹1,25,000
80DD LIC Premium:₹1,00,000
Taxable Income:₹7,75,000
Tax Saved:₹67,500
Required Documents for Tax Benefits
Essential documentation for claiming disability-related tax deductions
Medical Certificates
Disability Certificate
From competent medical authority (40%+ disability)
Medical Practitioner Certificate
For Section 80DDB claims (specified diseases)
Specialist Doctor Certificate
From neurologist, oncologist, or relevant specialist
Financial Documents
Medical Bills & Receipts
All treatment and medication expenses
Insurance Premium Receipts
LIC and health insurance premium payments
Maintenance Expense Receipts
Training, rehabilitation, and care expenses
Important Notes
- • Keep all original receipts and certificates
- • Medical certificates must be from recognized medical authorities
- • Maintain detailed records of all disability-related expenses
- • Consult a tax advisor for complex cases involving multiple deductions
Contact Information
Get help with tax benefits and filing procedures
Income Tax Helpline
1800-103-0025
Tax queries & assistance
Tax Consultant
Visit your nearest
Chartered Accountant
Professional advice
Maximize Your Tax Savings Today
Claim all eligible deductions and exemptions for disability-related expenses