Handicapped Allowance|Rules|Eligibility|Tax Exemption|Benefits
Under 7th Pay Commission
Handicapped allowance is one of such financial help that physically disabled employees receive from their employers. Mostly these allowances are given to those people who are working under central government, state government or government under taking organisations. There is a fixed rate of allowance is allotted to every disable employee. The amount of the allowance depends on the salary that employee draws and also the rate of allowance depend on the nature of disability. The most important allowance under the handicapped allowance is transportation cost. People who are physically disabled such as blind or other body parts are provided travel allowances.
According to the law, person with disabilities act, 1995 disability or handicapped means a person with following physical and mental disorders
- Mental retarded or mentally imbalanced person
- Blindness or person with low vision
- Leprosy cured and loco motor disability
- Person with Hearing problems and other physical disabilities
According to this act, employees with such disabilities will get a financial assistant on the basis of their basic pay scale as handicapped allowances. Mainly as mentioned that only people working under governmental organisations are eligible to draw such allowance from their employers.
Handicapped allowance – Eligibility
The main eligibility criteria for receiving handicapped allowance is one has to be an employee of any of the governmental organisation (state or central) or any public sector units or government undertaking firms. The other eligibilities are
- Person has to be a salaried employee
- Has to be a permanent employee
- He/she must have following disabilities such as blindness, low vision, loco motor disability, hearing impairing and mental illness and so on.
- The disability rate has to be minimum 40% for a person.
All these eligibility criteria must be considered to receive the handicapped allowance form the employers.
Handicapped allowance – tax exemption
No tax is levied on handicapped allowance. As per the IT act, the maximum amount of the allowance for a differently able person is Rs. 50, 000/- per year. If the concerning person is seriously disabled then the amount is Rs. 1, 00, 000/- annually. Both the amounts will not be recorded under any tax, especially income tax payment.
Also the amount mentioned here will be considered as the upper limit of medical expenses for a person with various disabilities. The expenses incurred due to medical treatment and such can also be reimbursed from the employer but in this case no income tax will be levied on the amount.
Transport allowance for the handicaps
People who are orthopedically handicapped are eligible to receive transport allowance which is little different from the normal transport allowance by the employers.
For an ordinary employee the TA is half of what a disabled employee receives as travel allowance. The minimum amount that a disabled employee will receive as TA will be Rs. 1000/-, DA will be same for all.
Handicapped allowance for central and state government employees
Employees who are working under central or state government organisation and drawing normal DA patter pay scale are being paid a double rate of conveyance allowances due to their disability. People who are orthopedically and visually 40% minimum disable, are eligible to receive such allowance along with other normal dearness allowances. The amount is paid on the basis of their basic salary.
Handicapped allowance for the bank employees
As per the guideline of the 7th pay commission the travel allowance for the differently able bank employees has increased from Rs. 200/- per month to Rs. 400/- per month. All the physically handicapped (blind or other) must be as mentioned minimum 40% disable or 50% permanently disable people will get this hiked travel allowances on the basis of their basic pay scale.
Handicapped allowance – 7th pay commissions
The 7th CPC has revised the handicapped allowance for all men as well as women. Special women who are differently able often face a lot of problem to raise their children will get Rs. 3000/- instead of Rs. 1500/- as special handicapped allowance. Transport allowances are also being doubled after the 7th CPC and it got hiked to Rs. 2250/- per month from Rs. 1000/- per month. For differently able children the educational allowances have become double the previous amount. Other facilities like leave, medical treatment and so on are also there.
Handicapped allowance – quick guide
|Eligible||40% of orthopaedic and visually disabled|
|Travel allowance||Double the normal rate|
|Bank employees||Rs. 400/- per month|
|Women||Rs. 2250/- per month|
|Children||Doubled the previous amount paid|
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