Income Tax Deductions for Persons with Disabilities (80U, 80DD and 10[14] – Allowances)
![Income Tax Deductions for Persons with Disabilities (80U, 80DD and 10[14])](https://enabled.in/wp/wp-content/uploads/2018/02/enabled-income-tax-1.png)
| TYPE | Particulars | Threshold Limits |
|---|---|---|
 80DD |
Deduction allowed to resident Individual and HUF for:
a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability b) Any amount paid or deposited under an 80DD approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions). |
Rs. 75,000 (Rs. 1,25,000 in case of severe disability) |
 80U |
A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability
[as defined under 80U Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] |
Rs. 75,000 (Rs. 1,25,000 in case of severe disability) |
 10(14) |
Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty | Up to Rs. 1600 per month (Rs. 3,200 per month for blind and handicapped employees) |
Example
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 4,20,000 |
| 2 | Amount spent on treatment of a dependant, being person with disability (but not severe disability) | 7000 |
| 3 | Amount paid to LIC with regard to annuity for the maintenance of a dependant, being person with disability( but not severe disability) | 60,000 |
| 4 | GPF Contribution | 25,000 |
| 5 | LIP Paid | 10,000 |
| 6 | Interest Income on Savings Account | 12,000 |
Computation of Tax
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 4,20,000 |
| 2 | Add: Income from Other Sources Interest Income on Savings Account | 12,000 |
| 3 | Gross Total Income | 4,32,000 |
| 4 | Less: Deduction U/s 80DD or 80U (Restricted to Rs.60,000/- only) | 75,000 |
| 5 | Less: Deduction U/s 80C (i) GPF Rs.25,000/- (ii) LIP Rs.10,000/- = Rs.35,000/- | 35,000 |
| 6 | Less: Deduction u/s 80TTA on Interest Income on savings account (restricted to Rs 10000/-) | 10000 |
| 7 | Total Income | 3,12,000 |
| 8 | Income Tax thereon/payable (includes Rebate of Rs 2500 as per Section 87A) | 600 |
| 9 | Add: (i). Education Cess @2% (ii). Secondary and Higher Education Cess @1% | 12 6 |
| 10 | Total Income Tax payable | 618 |
| 11 | Rounded off to | 620 |
Download Circular – (PDF, 278KB)
Circular No: 29/2017; Date: 5th December, 2017
Ref: https://www.incometaxindia.gov.in