1. Under Sec.80 U of the Income Tax Act certain deductions are available to the
physically handicapped resident persons.
A resident individual who is totally blind or suffers from any
physical disability is entitled to a deduction of Rs.40,000, in computing his taxable income.
For the purposes of this
section, the person claiming the tax deduction should be a resident person who is so disabled, so as to reduce his capacity for
normal work. A certificate for this purpose has to be produced from a physician or surgeon to the Assessing Officer at the time
of the first assessment.
2. Deduction in respect of maintenance including medical treatment of
handicapped dependent (Sec.80 DD):
Option 1. In the case of a resident taxpayer being an individual or Hindu
Undivided Family, incurring expenditure for medical treatment, nursing, training and rehabilitation of handicapped dependent.
In the case of a taxpayer depositing money under any scheme by LIC or UTI for the maintenance of a handicapped dependent, a
deduction is allowed in this respect from his taxable income.
The amount paid or deposited under Option 1 and/or Option 2; or
Rs.40,000 whichever is less.