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CA Intermediate · Taxation · Deductions from Gross Total Income

Meera, a resident individual aged 41, opts for the old regime for tax year 2026-27. She holds a medical authority's certificate that she has a severe disability of 85%. She spent ₹90,000 on her own medical treatment during the year. Her gross total income is ₹8,00,000. What deduction is available to her for the disability itself?

The deduction is ₹1,25,000. For a resident individual with a certified severe disability of 80% or more, the law allows a flat deduction of ₹1,25,000 irrespective of actual spending. The ₹75,000 figure applies only to a normal disability of 40% to 79%.

  1. A₹75,000
  2. B₹1,25,000Correct
  3. C₹90,000
  4. D₹1,00,000

Explanation

A resident individual with a certified disability of 40% or more gets a fixed deduction. It is ₹75,000 for a disability of 40% or more and ₹1,25,000 for a severe disability of 80% or more. Meera's 85% disability is severe, so the deduction is ₹1,25,000 whatever she actually spent. ₹75,000 is wrong because it is the amount for a normal disability. ₹90,000 is wrong because the deduction is fixed and not linked to actual expenditure.

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