Union Budget 2018: Modi Govt’s Last Chance to Fulfill Its 2014 Promise To the Disabled

New Delhi: The Union Budget 2018-19 is not just the Narendra Modi government’s last full-fledged budget ahead of 2019 General Elections, it is also its last chance to fulfill a promise it made before the previous elections — higher tax relief to families caring for the differently-abled.

Last month, the central government had 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 asked the government to fulfil its promise of higher tax relief for families taking care of the disabled. Sources at the Ministry told News18 back then that they were hoping that Finance Minister Arun Jaitley would announce the relief in the Budget today.

“As was asked from us, we have sent a mail to the Finance Minister informing him about the promise of higher tax relief. Since the government has asked us to mention the loopholes, we think this will be announced in this Budget,” a source told News18.

In its social security section, the BJP had promised to “provide higher tax relief for the family member taking care of the disabled”. At present, the Income Tax Department allows deductions under Section 80DD to individuals and Hindu Undivided Family (HUF) on the expenditure incurred in taking 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. At present, 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%.