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What is IT-exemption for Physically Disabled persons in India.?


Can I ask my employer for IT-exemption.

I am a Physically Disabled person. What is the IT-exemption for me.

Your question is discussed below. You can ask your employer to enable this benefit to you in your returns to be filed in future. Before that you should obtain a doctor certificate as explained in the below chapter.

In Case of Physically Handicapped Persons
A person who is suffering from permanent physical disability or mental retardation is entitled to deduction upto Rs. 40,000.
Handicapped must be certified by a physician, surgeon or a psychiatrist who is working in a government hospital.
Under section 80DD and 80U of Income Tax Act, physical disability must be one of the following:
Permanent or more than 50% disability in limb
Permanent or more than 60% disability in 2 or more limb
Permanent loss of voice
Permanent blindness
Mental Retardation in which mental intelligence is less than 50% of normal required intelligence

Exemptions for persons with disability and families:

There are special tax concessions in the Income Tax Act for disabled persons. Section 80 U allows an exception of Rupees 40,000 from the income of the assessee with disability. (Apart from 80DD benifits to parents)

Rs. 75000 Under Section 80U

DEDUCTION FOR PHYSICALLY HANDICAPPED & DISABLED DEPENDENT U/S. 80DD.

A deduction of Rs. 15,000 u/s 80DD was allowed to an individual or HUF in respect of expenditure incurred on medical treatment of a handicapped dependent. Similarly, u/s 80DDA a separate deduction to a parent or guardian in respect of deposits upto Rs.20,000 made in specified schemes of Life Insurance Corporation & Unit Trust of India was available to provide for the future needs of the said dependent.

The old sections 80DD and 80DDA have been merged into a new see. 80DD. Now, w.e.f. 1-4-2000 i.e. for A.Y. 2000-01 and subsequent years, a total deduction of Rs.40,000 will be available to the parent or guardian in respect of either medical expenditure incurred on medical treatment of or for the future needs of the disabled or handicapped dependent.

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