Dear Friends,

As you must be aware that pre-budget consultations are taking place. 

The All India Confederation of the Blind has submitted the representation to 
the Ministry of Social Justice & Empowerment in response to their call.  Many 
of you sent some useful comments which have been included in the list 
suggestions.   Copy of the suggestions forwarded to the Ministry is enclosed 
for your ready reference.  

 

With Kind Regards
k. srinivas

[email protected] 





 

All India Confederation of the Blind

 

Suggestions For Financial Benefits For Persons With Disabilities To Be

Taken Up During Pre-Budget Consultation/Discussion

 

 

1.      Benefits under Income Tax Act: 

1.1  Introduction of a new Scheme of IT benefits in place of rebate under 80U 
of IT Act for in-service persons with disabilities: It is suggested that in 
place of the existing provision of rebate granted to persons with disabilities 
under Section 80U of the IT Act, a new regime may be put in place or for 
persons with disabilities, while they are in service.  Thus, under this 
suggested arrangement, persons with disabilities, while in-service, may be 
granted 50% exemption in Income Tax at all slabs.  The existing benefit of 
granting rebate may be done away with.  Thus, persons with disabilities may be 
required to pay Income Tax at all slabs at the following rates:

 

·        5% for income upto Rs. 5,00,000/- (instead of the prevailing 10%)

·        10% for income upto Rs. 10,00,000/- (instead of the present 20%) and 
so on.

 

This will be in line with the spirit of the proposed Direct Tax Code (DTC) 
which discourages across the board rebates in income tax.  It also helps to 
mainstream persons with disabilities with regard to payment of taxes like 
others and at the same time, provides them necessary benefits also. 

1.2  Exemption from Income Tax for senior citizens with disabilities: It is 
proposed that income from pensions for senior citizens with disabilities (above 
60 years of age) may be made fully exempt from income tax, as a measure of 
relief to the elderly disabled citizens. 

1.3  Exempting the entire transport allowance from income tax: At present, 
persons with disabilities in service are given exemption from income tax only 
on the initial transport allowance allowed to other employees as well.  They do 
not get the benefit of such exemption for the double transport allowance 
granted to them by the 6th CPC on account of their disability.  It is, 
therefore, suggested that the entire amount of transport allowance paid to an 
employee with disability may be made exempt from income tax.  

2.      Transport allowance granted to employees with disabilities by the 6th 
Pay Commission:

2.1  The 6th Pay Commission granted to persons with disabilities double 
transport allowance, meaning thereby that an employee with disability will draw 
transport allowance double than that of his non-disabled counterpart.  In view 
of the steep increased in the transportation costs, during the last about 6 
years, it is suggest that the rates of transport allowance per month for 
employees with disabilities may be increased by 100%.  Thus, the rates may be 
as follows: Rs. 1600, Rs. 3200 and Rs. 6400.

2.2  Transport allowance may be made admissible to the Govt. pensioners with 
disabilities as well.  They may be granted such allowance at the same rates as 
applicable to them at the time of their superannuation.  This allowance is in 
keeping with the Government's policy of providing additional welfare measures 
for senior citizens with disabilities who have to face severe mobility problems 
and have to incur much greater expenses on transportation from place to place 
as also because of their increased dependence on others due to age.

2.3  Bank employees with disabilities may be allowed transport allowance and 
children's allowance at the same rates as applicable to their other 
counterparts with disabilities serving in Govt. departments/Ministries.  At 
present such benefits are denied/restricted in quantum for such bank employees. 
 

3.       Customs related benefits:

3.1  Spare parts/accessories for items, goods, machinery and equipment listed 
under serial Nos. 388 and 488 of the Ministry of Finance, Department of Revenue 
Notification No. 12/2012-Customs dated 17th March, 2012, may also be made 
exempt from all customs and additional duties.  This exemption assumes 
importance since a number of organizations have today with them costly 
equipment like high speed Braille embossers etc. imported from outside.  
However, such equipment tend to remain idle for long because of worn-out 
parts/accessories.  At present, such spare parts/accessories attract heavy 
duty.  It is suggested that, wherever applicable, items pertaining to spare 
parts/accessories of the equipment imported for persons with disabilities and 
covered in the said Notification, may also be treated as exempt from customs.

3.2  Amendment in the earlier Notification from the Ministry of Finance, 
Department of Revenue regarding exemption from Customs for equipment for 
persons with disabilities: It is relevant to mention here that Govt. of India 
Notification No. 152/94-Cus. Dated 13.07.1994 lays down certain conditions for 
grant of exemption from customs duties for goods and items listed in the said 
Notification relating to persons with disabilities.  The major conditions 
mentioned therein are: 

 

i)        The goods be imported by an institution 

ii)       The goods be obtained through donation from a foreign source.

 

It is our submission that the Ministry of Finance, Department of Revenue 
Notification of dated 17th March, 2012 referred to in 3.1 above, is silent on 
whether these conditions would still apply.  As such, the customs authorities 
are still interpreting the latest Notification in terms of the conditions laid 
down in the earlier Notification of 13.07.1994.  We, therefore, submit that it 
may please be made absolutely clear that exemption from customs duty in respect 
of goods and items indicated under serial Nos. 388 and 488 of the Notification 
dated 17th  March 2012 is not subject to any conditions and that the conditions 
laid down earlier are no longer applicable. 

3.3  Waving of custom duties for products which are of general use but can be 
of immense use as accessibility aids for persons with disabilities, when 
imported into the country by registered disability organizations: This is 
necessary given the fact that certain accessibility aids when imported are 
levied a duty even though they would be used for persons with disability to 
help promote accessibility. This could include but not be limited to 
Augmentative & Alternative Communication (AAC) devices, devices which have 
speech output, Portable and Desktop magnifiers, Assistive Listening Aids, 
certain special Switches, Adaptive keyboards, EyeGaze Solutions, Adaptive Input 
systems, adaptive games, video magnifier, talking MP3 players, talking devices. 
 The exemption may be granted when such equipment is imported into the country 
by registered disability organizations only.

4.      Exempting Braille paper from Vat/CST: Braille paper used by Braille 
presses for production of Braille books/journals may be exempt from all taxes 
and duties such as Vat/CST.  Such exemption may be granted to organizations 
running Braille presses.

5.      Exempting disability NGOs from payment of service tax: Working for the 
disabled registered under Societies Registration Act may be exempt from payment 
of service tax. In respect of services availed by these NGOs such as audit, 
advocacy, consultancy.  This exemption is suggested in view of the heavy 
financial liabilities of the concerned NGOs for running need-based services 
which have to be provided to beneficiaries free of cost and the very limited 
quantum of Govt. support.  

6.      Extension of Niramaya Health Scheme to other disabilities as well: The 
benefits of Niramaya Health Insurance applicable at present to persons covered 
under the National Trust Act may be extended to persons with other disabilities 
as well.  These benefits have proved extremely useful for persons with 
disabilities covered hitherto and would be equally beneficial for other 
categories of disabled persons as well.  

7.      Issue of LPG Cylinders at subsidized rates: 

7.1  NGOs working for persons with disabilities were earlier getting LPG 
cylinders (14.2 kg.) at the rate of Rs. 399/- per cylinder.  However, 
subsequent to the recent Govt. of India decision removing subsidy on LPG 
cylinders, these NGOs have to pay an exorbitant rate of Rs. 1120/- for each 
such cylinder.  This, naturally, puts the concerned NGOs to a severe 
disadvantage posing a serious threat to related services for NGOs providing 
free board and lodging facilities.  It is, therefore, suggested that disability 
NGOs running hostels for children/adults with disabilities may be provided LPG 
cylinders at the earlier rates only, viz. Rs. 399/- per cylinder.  It is 
relevant to mention here that hostel services including food etc. are provided 
to beneficiaries with disabilities by NGOs free of cost. 

7.2  Women consumers with disabilities may be spared the present high cost of 
LPG cylinders, in view of their vulnerable socio-economic conditions.  It is, 
therefore, suggested that these women consumers may be provided at least 12 LPG 
cylinders at subsidized rates per year.  

8.       Benefits relating to Railways: 

8.1  The Ministry of Railways may be persuaded to take urgent steps to allow 
the facility of concessional fares to persons with disabilities on e-booking of 
tickets as well.  The Hon'ble High Court of Delhi has already issued necessary 
directions in the matter to the Railway Board which need to be implemented 
forthwith.

8.2  Persons with disabilities may be allowed the facility of concessional 
fares on tickets booked under Tatkal service as well.  They would, of course, 
pay admissible Tatkal charges in full.  What we seek is that the benefit of 
railway concession fares be made applicable to tatkal tickets also for 
passengers with disabilities.  

8.3  A separate quota may be earmarked for persons with disabilities in AC 2 
tier/3 tier classes.  The quota may consist of lower berths only. 

 

 

 

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