Union Budget 2018: Higher Tax Relief For Families Taking Care of Disabled On the Cards
New Delhi: With just 20 days to go for its last budget, the central government has asked departments to go through the BJP’s 2014 manifesto and list out all the promises that have not been fulfilled yet.
Keeping in line with the directive, the Ministry of Social Justice and Empowerment has asked the government to fulfill its promise of a higher tax relief for families taking care of the disabled. Sources at the ministry told News18 that they were hoping that Finance Minister Arun Jaitley will announce the relief in the upcoming budget.
“We were asked just 3-4 days ago to list out things that have not been fulfilled. As was asked from us, we have sent a mail to the Finance Minister informing him about the promise of a higher tax relief. Since the government has asked us to mention the loopholes, we think this will be announced in this Budget,” sources told News18.
The BJP manifesto, under its social security section, had promised to “provide a higher tax relief for the family member taking care of the disabled”. As of now, the Income Tax Department allows deductions under Section 80DD to individuals and Hindu Undivided Family (HUF) on the expenditure incurred to take care of a disabled or a differently-abled dependent.
For an individual taxpayer, the dependent has to be a spouse, child, parent or sibling. For HUF, the dependent has to be a member of the HUF.
Expenditure for medical treatment, training and rehabilitation of the dependent qualify for tax benefits. As of now, there is a relief to the tune of Rs 75,000 where the disability is less than 80% and more than 40%. The relief can go up to Rs 1,25,000 in situations where the disability is more than 80%.