Are there any tax incentives proposed for the physically and mentally challenged?
Sections 80DD and 80U are proposed to be amended with effect from assessment year 2005-2006 to provide that the deduction will be available in respect of medical treatment or nursing or a handicapped dependant relative suffering from “autism”, “cerebral palsy”, “multiple disabilities” in addition to the disabilities for which the deduction is already available. Similarly, it is possible that persons suffering from the above mentioned handicaps can also claim the deduction permissible under Section 80U. Presently, Sections 80DD and 80U allow a deduction of Rs 50,000 if the person suffers from the disability or handicap and Rs 75,000 if the person suffers from a severe disability or handicap. Is there any benefit that will be available to Government employees? The Central Government contribution and employee contribution to a pension scheme will qualify for a deduction. This will be a deduction in computing the employee’s income. The amount that will qualify for deduction cannot exceed 1
