Owning a home is a major life goal for many people, and for individuals with disabilities, it often carries even more meaning. Recognizing the challenges faced by disabled citizens, the Indian government and many municipal authorities have introduced tax exemptions and benefits that make property ownership more affordable and secure.
In 2025, disabled property owners in India can claim several financial advantages through income tax deductions and property tax reliefs. These measures are designed to provide practical support, reduce financial strain, and encourage inclusive property ownership. Here’s a clear look at the available benefits, eligibility, and steps to claim them.
Table of Contents
1. Income Tax Deductions under Section 80U
The Income Tax Act, Section 80U allows individual taxpayers with disabilities to claim a flat deduction from their total taxable income. This helps reduce the amount of tax they pay for the financial year.
Who Can Claim:
Any resident individual who has at least 40% certified disability can claim this deduction. The disability must be medically certified by an authorized government medical authority.
Deduction Amounts (FY 2024–25):
- ₹75,000 – for individuals with 40% to 80% disability
- ₹1,25,000 – for individuals with 80% or more disability (includes severe disabilities such as multiple disabilities, autism, and cerebral palsy)
This deduction is not based on actual expenses. It’s a fixed amount that directly reduces your taxable income, leading to clear tax savings.
Important Points:
- You must submit a valid disability certificate with your income tax return.
- The certificate is usually issued in Form 10-IA by authorized medical authorities.
- The deduction is available only under the old tax regime. Those who opt for the new tax regime cannot claim this benefit.
- A separate deduction under Section 80DD is available for taxpayers who financially support dependents with disabilities.
Example:
If a taxpayer has an annual income of ₹8 lakh and has a certified disability of 60%, they can claim ₹75,000 as a deduction under Section 80U. This reduces their taxable income to ₹7,25,000, which means less income tax payable.
2. Property Tax Exemptions and Rebates
Apart from income tax deductions, many municipal corporations across India also offer property tax exemptions or rebates for disabled homeowners. These exemptions help reduce the annual cost of owning a home.
Who Qualifies:
- The property must be owned and self-occupied by the person with a disability.
- The owner must provide proof of disability and residence.
- The level of exemption may vary from one city or state to another.
Example – Chandigarh:
Chandigarh provides a 100% property tax exemption on self-occupied residential properties up to 300 square yards for disabled owners. If the property size is larger, the remaining portion may still get a 50% concession.
Many other cities in India follow a similar pattern by offering partial or full property tax rebates. For example:
- Some cities grant flat discounts on annual tax bills.
- Others offer percentage-based reductions, depending on the disability level or the property size.
However, these benefits are typically available only for primary residences. If the property is rented out, the exemption may not apply.
How to Claim:
- Visit your local municipal office or the city’s online property tax portal.
- Fill out the application form for property tax exemption or rebate.
- Submit the disability certificate, property ownership proof, and residence proof.
- Some municipalities require you to renew the application annually.
It’s a good idea to check the specific rules of your city, as eligibility criteria and exemption rates can vary.
3. Eligibility and Certification
To access these benefits, the first and most important step is to have an official disability certificate issued by a competent medical authority.
Eligibility:
- The person must have at least 40% disability to qualify.
- Disabilities include:
- Visual impairment
- Hearing impairment
- Locomotor disability
- Mental illness
- Autism, cerebral palsy, and multiple disabilities (for severe cases)
The certificate generally specifies the type and percentage of disability, which determines whether you qualify for the basic or higher deduction limits.
4. Additional Tax Reliefs in Budget 2025
The Union Budget 2025 brought additional provisions that indirectly benefit disabled property owners by simplifying ownership and reducing tax pressure on homeowners.
Key Highlights:
- The deduction for pre-construction interest on let-out properties has been retained.
- Homeowners can now claim “nil annual value” for up to two self-occupied houses. Earlier, this benefit was limited to one house. This change helps individuals, including disabled owners, who may have more than one property for personal use.
- Together, these measures simplify the property tax calculation process and lower the overall tax liability.
5. Documentation and Compliance
Both income tax and property tax benefits require proper documentation. Incomplete or missing proofs can delay or deny your claim.
Documents You’ll Need:
- Certified disability certificate (showing percentage and type of disability)
- Proof of property ownership (sale deed, property tax bill, or registration papers)
- Proof of self-occupation (utility bills, Aadhaar address, or municipal verification)
- Income tax forms (for Section 80U claim)
- Municipal application form (for local property tax exemption)
Some cities require applicants to renew their exemption claim every year, while others allow multi-year validity once the certificate is verified. Always confirm the procedure with your local municipal office.
6. Why These Benefits Matter
Tax benefits are more than just financial relief; they’re a step toward social inclusion and economic equality. By reducing tax burdens, these exemptions make it easier for individuals with disabilities to:
- Own and maintain their own homes
- Plan long-term financial stability
- Live independently with dignity
Property ownership also provides security and a sense of belonging, which these policies aim to promote.
Conclusion
Disabled property owners in India have access to valuable tax exemptions and deductions in 2025, from Section 80U income tax benefits to local property tax rebates. With proper certification and documentation, these reliefs can make a noticeable difference in managing yearly expenses.
Whether you’re planning to buy a home or already own one, it’s worth checking your eligibility for these benefits. Always keep your disability certificate and property documents updated, and stay informed about the latest municipal rules in your city.
These thoughtful initiatives by the government and local bodies make homeownership more accessible and inclusive, helping every citizen take a confident step toward financial independence and a better quality of life.
Frequently Asked Questions
Q. Can I claim Section 80U deductions under the new tax regime?
No. The Section 80U deduction is available only under the old tax regime. Individuals opting for the new regime cannot claim this benefit.
Q. Are property tax exemptions available in all cities?
Most major cities and municipalities in India offer property tax rebates or full exemptions for self-occupied homes owned by disabled individuals, but the rates and conditions vary by location.
Q. What documents are required to apply for property tax exemption?
You need a valid disability certificate, proof of property ownership, and proof of self-occupation. Some cities may also require annual renewal forms.