The Income-tax Act has particular provisions for people with disabilities, just like other laws that have been enacted for the welfare and concessions of people with disabilities. These clauses are dispersed throughout the Income-tax Act’s several chapters. Only clauses relating to tax deductions under chapter VIA of the Income-tax Act are mentioned in common speech. However, there are other rules that may enable people with disabilities and their family members to reduce their income tax obligations. In one place, this article makes an attempt to explain them.
Net Total Income Subtraction
After calculating your gross overall income from all sources, you can make deductions to lower your taxable income and the associated tax. Here we explore some of the more typical deductions. However, if you have a disability or a dependent who has a condition, you may be allowed to deduct an additional 75,000 or 125,000 depending on how serious your disability is. In many ways, these two deductions are comparable. Here is a discussion of the summary:
Disability dependent tax deduction
If one of your dependant relatives is completely reliant on you for support and has a disability, you may be able to deduct the costs associated with their care, training, or rehabilitation. This deduction may also be made against the premiums or deposits paid for insurance policies drawn in the beneficiary’s or dependent’s name. In cases of incapacity ranging from 40 to 80% as determined by the pertinent medical authorities, the amount of deduction is 75,000/-. However, the amount of the deduction is $125,000 in cases when the handicap is greater than 80% according to the pertinent certification.
It should be emphasised that this deduction has nothing to do with the money you spent. It is a fixed sum deduction that is unrelated to the amount spent. When claiming the deduction, no certificate needs to be attached to the I-T Return, but the individual making the claim must have access to a valid certificate.
According to the legislation, a dependant is a family member who is entirely reliant on the individual requesting the deduction for maintenance. Spouses, kids, parents, brothers, and sisters are among the relatives that are included in the definition.
After the certificate of disability’s expiration date, no more claims may be made for this deduction. According to the appropriate certificate, this deduction is likewise not allowable for disabilities that are less than 40%.
Disability-related tax deduction for the individual
The disabled person can claim the above-discussed deductions against his income if he or she is a taxpayer and not reliant on anybody for maintenance and support. The eligibility requirements are all still in place, as are the deduction amounts.
Disability-related tax deduction for the individual
The disabled person can claim the above-discussed deductions against his income if he or she is a taxpayer and not reliant on anybody for maintenance and support. The eligibility requirements are all still in place, as are the deduction amounts.
Transport Compensation
Taxpayer tax relief on the transportation allowance is no longer available as of Budget 2015. Disability-related tax relief is still available, though. Therefore, the prescribed amount of such an allowance received by a disabled person who uses it to travel from his home to his place of employment is not taxable. The people who qualify for this relief include those who are blind, deaf and dumb, or have lower-limb disabilities.
The maximum monthly benefit for this type of treatment is 3200. This means that if you receive a monthly transportation allowance of $4,000, $3,000 of that sum is not subject to taxation. If you receive a monthly allowance of $3,000, the relief mentioned above is only applicable to that amount.
Additional Tax Relief for Insurance Policy Premium
Under Section 80C of the Act, the deduction for the premium paid on an insurance policy is requested. This type of deduction is limited to the lesser of the premium paid or 10% of the guaranteed money. When it comes to people with disabilities, this assured sum cap is increased to 15% rather than
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