Q. What are the benefits the Government of India is giving to a mentally retarded child (I.Q. 48) and to his parents where the father is working in a Government of India Undertaking.
Section 80 DD provides for a deduction in respect of the expenditure incurred by an individual or HUF resident in India on the medical treatment (including nursing). training and rehabilitation etc. of handicapped dependants. For officiating the increased cost of such maintenance, the limit of the deduction has been raised from Rs.12,000/- to Rs.20,000/-.
Section 80V: A new Section 80 V has been introduced to ensure that the parent in whose hands, income of a disabled minor has been clubbed under Section 64, is allowed to claim a deduction upto Rs.20,000/- in terms of Section 80 U. which provides for a deduction of Rs.20,000/- in case of an individual who is suffering from a permanent disability (including blindness) or is subject to mental retardation.
Section 88 B: This Section provides for an additional rebate from net tax payable by a resident individual who has attained the age of 65 years, has been amended to increase the rebate from 10% to 20% and to allow this benefit in cases where the gross total income does not exceed
An assessee who is resident in India being an individual or Hindu Undivided Family has during the previous year incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a person who is a relative of the individual or is a member of the Hindu Undivided Family and is suffering from permanent physical disability including blindness or mental retardation shall be allowed a deduction of Rs.6,000/-. His deduction will not be allowed where his total income exceeds Rs.1,00,000/-.
As per the Finance Minister's budget speech in 1995 the other concession is: A deduction of Rs.20,000/- from the taxable income of the parents or guardians of handicapped children has been allowed provided this amount is deposited in any approved scheme of LIC, UTI, etc.