FM announces tax relief to persons with disability

New Delhi, Feb. 1: While there were no big-bang announcements in the Union Budget 2022 for individual taxpayers, finance minister Nirmala Sitharaman introduced a new tax benefit/ deduction for the parent/guardian of a disabled person. Ms Sitharaman said, "The parent or guardian of a differently-abled person can take an insurance scheme for such a person. The present law provides for a deduction to the parent or guardian only if the lumpsum payment or annuity is available to the differentlyabled person on the death of the subscriber i.e. parent or guardian."

The parent or guardian of a differently-abled person can take an insurance scheme for such person. The present law provides for deduction to the parent or guardian only if the lump sum payment or annuity is available to the differently abled person on the death of the subscriber i.e. parent or guardian. FM proposed to allow the payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians attaining the age of 60 years. "There could be situations where differently-abled dependants may need payment of annuity or lump sum amount even during the lifetime

of their parents/guardians. I propose to thus allow the payment of annuity and lump sum amount to the differently-abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardians attaining the age of sixty," said Ms Sitharaman.