New Delhi, Feb. 18 -- Physically disabled emoloyees including blind, deaf, mute or orthopedically handicapped are set to benefit from higher travel-related income tax deductions under the draft Income Tax Rules, 2026.

The proposed rules provide for significant enhancement in transport allowance deductions, applicable under both the old and new tax regimes. However, regular employees will not qualify to get this benefit, business daily Economic Times reported.

Higher Deduction for Differently-Abled Employees

Aarti Raote, Partner at Deloitte India, said the draft rules propose raising the deduction for employees with specified disabilities from Rs 3,200 per month to Rs 8,000 in non-metros and Rs 15,000 in eight metro cities, with Pune, B...