Budget should give tax benefits to differently-abled: NCPEDP

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SME Times News Bureau | 24 Jan, 2020
The National Centre for Promotion of Employment for Disabled People (NCPEDP) on Friday said that the upcoming budget should announce tax benefits and lower interest rates for people with disabilities.

Among its recommendations for the upcoming Union Budget 2020-21, the organisation has also said the goods and services tax (GST) on products used by people with disabilities should be removed, and proper funds be allocated for implementation of the Rights of Persons with Disabilities Act, 2016.

It also said that people with disabilities should be given a 0.5 per cent benefit in interest similar to that given to senior citizens on account of the rising cost of living and increasing disability-related costs.

People with disabilities should not be denied health and life insurance, it added.

The procedure to avail customs duty relaxation or exemption on goods for persons with disabilities should be linked with a self-declaration to mitigate hardships caused in availing such exemptions and relaxations.

"GST should be completely removed on goods used by persons with disabilities as it imposes high cost on products," the NCPEDP said in a statement.

Regarding income tax, the Centre recommended that the income tax ceiling for people with disabilities and those with dependents with disabilities be increased to Rs 5 lakh.

"Increase in 80U exemption from 75,000 for people with less than 75 per cent disabilities and Rs 1,25,000 for people with over 75 per cent disabilities to Rs 1,50,000 and Rs 3,00,000 respectively. Increase in deduction on 80D from 50,000 per dependent to Rs 1,00,000 per dependent," the statement said.

The NCPEDP also suggested that a database of taxpayers availing 80U deductions be maintained which would throw light on the number of taxpayers with disabilities.

A deduction of up to Rs 40,000 is allowed for treatment of specified ailments such as thalassemia, the body said, adding that this should be increased to the actual expenses, or at least Rs 1 lakh, and the list must be updated to align with the Rights of Persons with Disabilities Act, 2016, while ailments such as multiple sclerosis should be also recognized for such exemptions.