Income-tax Act, 2025

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability - Section 127

Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability.

127. (1) An assessee being an individual or a Hindu undivided family, who is a resident in India, shall be allowed a deduction up to Rs. 75000 from his gross total income of a tax year, subject to the provisions of this section, if during that year he has

(a) incurred expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or

(b) paid or deposited any amount under a scheme framed by the Life Insurance Corporation or any other insurer or the Administrator, or the specified company, for the maintenance of a dependant, being a person with disability, subject to the conditions specified in sub-section (2) and approved by the Board in this behalf.

(2) The deduction under sub-section (1)(b) shall be allowed only if the following conditions are fulfilled:

(a) the scheme referred to in sub-section (1)(b) provides for payment of an annuity or lump sum amount for the benefit of a dependant, being a person with disability

(i) on the death of the individual or the member of the Hindu undivided family, in whose name the scheme was subscribed; or

(ii) on attaining the age of sixty years or more by such individual or the member of the Hindu undivided family, and the payment or deposit to such scheme has been discontinued;

(b) the assessee nominates the dependant, being a person with disability or any other person or a trust to receive the payments on behalf of and for the benefit of such dependant.

(3) If the dependant as referred to in sub-section (1) is a person with severe disability, the amount of deduction as referred to in sub-section (1) shall be substituted with "Rs. 125000" for "Rs. 75000".

(4) In the event of death of the dependant, being a person with disability, before the individual or the me .... To read the full section download the app from Google Play store