Government Benefits, Disability Pensions, and Savings Schemes in India

Anushka Gupta
Jun 24
2 min read

Government Benefits, Disability Pensions, and Savings Schemes in India

Navigating financial challenges while ensuring a secure future for a child or young adult with disabilities can be overwhelming for families. Thankfully, the Indian government provides various benefits, pensions, and savings schemes designed to support individuals with disabilities and their families. Understanding these options can help parents and caregivers access much-needed financial assistance and long-term security.

Disability Pension Schemes

Disability pensions are provided by state governments to offer financial aid to individuals with disabilities. While eligibility criteria and the amount disbursed may vary by state, the initiative ensures a basic level of financial support.

Eligibility: Typically, individuals with 40% or more certified disability and a household income below a specified threshold are eligible.
How to Apply: Applications can be made through the state’s social welfare department or local government offices. For instance, Maharashtra offers the Sanjay Gandhi Niradhar Anudan Yojana, while Tamil Nadu provides the Differently Abled Persons Pension Scheme.

Niramaya Health Insurance Scheme

The Niramaya Health Insurance Scheme, offered by the National Trust, provides comprehensive health coverage for individuals with disabilities.

Coverage: Up to ₹1 lakh annually, including pre-existing conditions and therapies such as physiotherapy.
Eligibility: Open to individuals with disabilities registered under the National Trust Act.
Premiums: Subsidized or fully covered for families below the poverty line.

Parents can apply for the scheme through the National Trust website or local disability welfare organizations.

Tax Benefits for Families

The Indian government provides significant tax benefits to families of individuals with disabilities under the Income Tax Act:

Section 80DD: Offers deductions for medical expenses incurred for a dependent with disabilities. The deduction is ₹75,000 for a disability level of 40%–79% and ₹1,25,000 for 80% or more.
Section 80U: Provides deductions for individuals with disabilities who are taxpayers themselves.
Section 10(14): Covers specific allowances for transportation or medical expenses incurred due to a disability.

Savings and Investment Schemes

To ensure long-term financial security, parents can explore savings and investment schemes tailored to the needs of individuals with disabilities:

Pradhan Mantri Jan Dhan Yojana (PMJDY): Enables individuals with disabilities to open zero-balance bank accounts, offering access to overdraft facilities, insurance coverage, and direct benefit transfers.
Sukanya Samriddhi Yojana: A savings scheme for girls under 10, including those with disabilities, providing high interest rates and tax exemptions.
Senior Citizen Savings Scheme (SCSS): While not disability-specific, it can benefit caregivers managing finances for dependents.

Unique Disability ID (UDID) Card

The UDID card simplifies access to benefits by serving as a single document for disability certification and identification. The card ensures transparency and reduces the paperwork required for availing pensions, health schemes, and educational benefits.

How to Get Started

Research Eligibility: Familiarize yourself with the criteria for each scheme or benefit.
Register for the UDID: Visit www.swavlambancard.gov.in for online registration.
Seek Assistance: Contact local District Disability Rehabilitation Centres (DDRCs) or NGOs specializing in disability advocacy for guidance.

The financial schemes and benefits provided by the Indian government are designed to empower families and individuals with disabilities. By leveraging these resources, parents can ensure a more secure and independent future for their children. Proactive planning and accessing these benefits can alleviate financial burdens and open pathways to greater opportunities for children and young adults with disabilities.