Lok Sabha Question No. 2079 (UNSTARRED), answered on 2016-07-29
Subject: Income Tax Rebate for Handicapped
Ministry: FINANCE
Asked by: REKHA ARUN VERMA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

UNSTARRED QUESTION No. 2079

TO BE ANSWERED ON FRIDAY, THE 29 th   JULY, 2016

7, SRAVANA, 1938 (SAKA)

## INCOME TAX REBATE FOR HANDICAPPED

## 2079. SHRIMATI REKHA VERMA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government  provides  income  tax concessions to the physically handicapped, if so, the details thereof along  with  the  reasons,  if  any,  of  the same during the last three years and the current year, if not, the reasons therefor;
- (b) whether the income tax rebate being provided to handicapped persons in the country is not sufficient;
- (c) whether  the  Government  has  plans  to  extend  more  facilities  and  if  so,  the  details thereof; and
- (d) the details of policy formulated or being formulated in the matter?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a)    Yes  Madam,  under  the  existing  provisions  of  the  Income  Tax  Act,  1961  (the Act),following tax concessions are  specifically provided for persons with disability  for the last three years  and are available for the current year  :-
- (i) Upto  financial  year  (FY)  2015-16,  section  80U  of  the  Act  provided  for  a  specific deduction of Rs. 50,000/- in case of a person with disability and Rs. 1,00,000/- for severe disability. These deductions have been enhanced  to Rs.75,000/and Rs 1,25,000/respectively by the Finance Act,2015,w.e.f FY 2016-17.

(ii) Upto FY 2015-16, section 80DD of the Act provided for a deduction of Rs. 50,000/in respect of medical treatment or payment under the approved scheme for maintenance of a dependant who is a person with disability and Rs. 1,00,000/- in case of a dependant with severe disability.  These deductions have been enhanced to Rs.75,000/- and Rs 1,25,000/respectively by the Finance Act, 2015, w.e.f.  FY 2016-17.

(iii) With effect from FY 2013-14, the limit of 10% on capital sum assured for claiming deduction under section 80C in respect of insurance premium has been enhanced to 15% for a person with disability.

(iv) Exemption  has  been  provided  from  clubbing  of  income  in  case  of  minor  child suffering from disability under section 64 of the Act.

(v) Section 80G of the Act provides full deduction in respect of donations to the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).

(b),(c)  &(d)        Apart  from  the  specific  deductions/exemptions  mentioned  above,  the  Act provides for various deductions/exemptions including rebate under section 87A of the Act for individual taxpayers which are available to handicapped persons also.

Further,  there  has  been  a  continuous  moderation  of  tax  regime  by  way  of  increase  in  the basic  exemption  limits,  widening  of  tax  slabs,  and  enhancement  of  amounts  qualified  for various deductions or concessions. Such moderation has benefitted persons with disability also.

The policy regarding tax concessions is contained in the Finance Minister's Budget Speech, 2015 wherein it was stated that concessions to individual taxpayers have been provided by the  government  despite  inadequate  fiscal  space  and  as  and  when  the  fiscal  capacity improves, more such benefits may be provided to individual taxpayers.

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