Budget 2022: Income Tax Relief announced for differently-abled Persons [Read Finance Bill, 2022]

The Finance Minister, Nirmala Sitharaman in her Budget Speech has announced certain income tax relief for differently abled Persons.

The parent or guardian of a differently abled person can take an insurance scheme for such a 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.

There could be situations where differently abled dependents 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 years,” the Finance Minister said.

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