CHENNAI: The Budget announcement allowing tax deductions on payment of annuity and lump sum insurance amount to dependent persons with disabilities when their parents or guardians are alive or attain the age of 60 years has been welcomed by the community. The new tax relief is proposed to be added under Section 80DD of the Income Tax Act.
Earlier, the relief was provided only for term plans in which payment of annuity and lump sum was paid following the death of the proposer (parent/guardian died). "It is a major relief and we have been fighting for this cause for years now. This measure will ensure at least some kind of financial security for the person with disability," said K Manikandan, a disability rights activist.
However, activists said this was the only silver lining for them in this year’s budget. According to Muralidharan Vishwanath, general secretary, National Platform for the Rights of Disabled (NPRD), "Unlike last time, which saw a nearly 12 per cent reduction in allocations to the Department of Empowerment of Persons with Disabilities, this time there has been a marginal increase."
"However, even then, there is a shortfall of Rs. 112.97 crores as compared to the 2020-21 budget estimates. This is so even in the case of the total allocated for the national programmes for the welfare of persons with disabilities, which has seen a shortfall of Rs. 20 crores as compared to 2020-21 estimates," he said.
Also, activists have flagged the drastic reduction in allocation to the Artificial Limbs Manufacturing Corporation of India (ALIMCO) from Rs 50 crore last year to a mere Rs 0.10 crore this time. ALIMCO manufactures and supplies aids and appliances that the government distributes through various schemes and programmes.
Batting for social security
"Just the insurance amount will not provide the breather that a disabled person requires. Social security must be strengthened. Nothing has been mentioned about health insurance," said Smitha Sadasivan, member, Disability Rights Alliance (DRA).