ONE OF OUR EMPLOYEE IS A PHYSICALLY HANDICAPED WITH MORE THAN 40% AND HE IS WORKING IN OUR COMPANY FROM LAST FIVE YEARS TILL NOW HIS INCOME WAS BELOW LIMIT BUT IN F.Y 2010-2011 THE INCOME EXCEEDS THE LIMIT AND LIABLE TO PAY TAX. PLEASE ADVISE CAN A COMPANY GIVE THE EXEMPTION U/S 80U (PHYSICALLY HANDICAPED) TO OUR EMPLOYEE AND ON WHAT CONDITION THE COMPANY MAY GIVE THE EXEMPTION.
06 April 2011
Deduction in case of a person with disability [Section 80U]
Persons Covered • Resident Individual who is a person with disability
Essential conditions • He is certified by the medical authority to be a person with disability, at any time during the previous year.
Quantum of deduction: • Rs. 50,000* in case of a person with disability (40-79%). • Rs. 1,00,000* in case of a person with severe disability(80-100%). (Irrespective of amount of expenditure)
CAclubindia
