Concessions on Taxes and Duty

  1. Income Tax
    1. Exemptions for persons with disability and families
    2. Exemptions on donations

  2. Custom Duty
  3. Central Excise Duty

Income Tax

Exemptions for persons with disability and families

There are special tax concessions in the Income Tax Act for disabled persons. Section 80 U allows an exception of Rupees 40,000 from the income of the assessee with disability. To avail of this concession a disability certificate issued by a physician working in a government hospital has to be annexed with the tax assessment form. Section 80 DD allows deductions of Rupees 50,000 to a parent or relative upon whom the disabled is dependent for maintenance, which includes medical treatment of the disabled person. For a visually challenged person to qualify for the above exemptions, he/she has to meet the following criteria:

Blindness

Blindness shall be regarded as a permanent physical disability, if it is incurable and falls in any of the categories specified below, namely :

Blindness Categories
Categories Better eye (with correction) Worse eye(with correction)
1 6/60-4/60 or field of vision 110-20 3/60 to nil
2 3/60 to 1/60 or field of vision 100 FC at 1 foot to Nil
3 FC at 1 foot to nil or field of vision 100 FC at foot to nil or field of vision 100
4 Total loss of sight Total loss of sight


Full text of Sections 80 DD, 80 DDA, 80 DDB, 80 U of the Income Tax Act

Exemptions on donations

Deductions are allowed to persons making donations to registered trusts and societies doing work for the handicapped. The relevant sections are 80G and 80GGA. Under Section 80G deduction from Income is allowed at 50 percent of the amount donated to the eligible institution. The amount on which deduction is claimed under the section, however, cannot exceed 10 percent of the gross total income exemptions. This is only in respect of certain specific projects for research, development etc. Deductions in respect of donations may be claimed by all assesses, ie, individuals, companies etc. Full text of Section 80 G and 80 GGA of the Income Tax Act
Full text of Section 80 G and 80 GGA of the Income Tax Act

Exemptions in Custom Duty

Customs

Specified goods when imported by any institution for the blind or deaf are exempt from duty.
  • Braille printer or Braille embosser or Braille display designed for computer systems are exempt from payment of duty. (Notification No. 20/99 Customs S.No. 194)
  • Closed Circuit Television System for use as low-vision aid for visually disabled persons can be imported at a concessional rate of duty of 15 per cent. (Notification No. 20/99 Customs S.No. 203)
  • Audio cassettes, if recorded with material from books, newspapers , or magazines for the Blind are exempt from duty. (Notification No. 20/99 Customs No. 239)
  • Certain other special goods imported by a disabled or disabled person for his personal use are exempt from duty. (Notification No. 20/99 Customs S.No. 278)
Read the Custom notifications

Exceptions in Excise Duty

The Central Government exempts all goods manufactured by an institution which:
  • is primarily engaged in the rehabilitation of physically or mentally handicapped persons.
  • employs primarily, physically or mentally handicapped persons for its manufacturing activity,
  • is receiving financial assistance from the Govt. of India, Ministry of Social Welfare for such rehabilitation,
Read the Concessions on Excise Duty