SARS has published new rules for disability tax deductions on its website, www.sars.gov.za.

It said in a statement: "Although the list of qualifying expenses is quite extensive, care has been taken to ensure that it does not exclude a legitimate expense that is not listed.

"Therefore, instead of a comprehensive list, it identifies broad categories of qualifying expenses and provides examples of expenditure that could be claimed."

To claim the deductions, the person with a disability must obtain a confirmation of their disability from a registered health practitioner. People who have previously been declared handicapped must also follow this procedure.

With respect to the diagnostic criteria, disability is now viewed as an impairment to the body or mind that results in a moderate to severe limitation on a person's ability to perform daily functions. This increases the number of people who now may claim their expenses in full.

A person may now be diagnosed as permanently or temporarily disabled. In the case of a permanent disability, the diagnosis will be valid for five years and must be confirmed by a registered health practitioner at the end of that period; a temporary disability diagnosis is valid for a year.

Claims by people who are not disabled but have physical impairment will still be subject to limitations. They may claim expenses related to their impairment only when such expenses exceed 7.5% of their taxable income.

Physical impairment is distinguished from disability by the fact that the severity of its effects can be overcome by a device or be corrected through therapy.

Previously, people with disabilities could only claim their total medical expenses that were not covered by medical aid if they were 65 years and older, or if the Income Tax Act No 58, 1962 regarded them as handicapped. These limitations in the law were restrictive for people with a disability who were not handicapped.

For example, this meant a person would have to be deaf to the point that they relied on sign language before they could claim all expenses, whereas a person requiring a hearing aid could not claim the expense incurred in full.

Recognising this, the Income Tax Act was amended in 2008 so that people with disabilities could claim all expenses, medical or otherwise, that enable them to function more fully in their daily lives.

Since March 2009, these new deductions have applied if the taxpayer concerned or a child or spouse of the taxpayer has a disability.

The amendment also clarified which expenses SARS would allow as a deduction.

However, for the aims of the law to be fully realised, SARS was required to prescribe the qualifying expenses and the criteria for diagnosing a disability - hence this week's announcement. The announcement, said SARS, followed extensive discussions with the representative bodies for people with disabilities, health professionals and other government departments.

The necessary form, ITR-DD, is available from the SARS website or from any SARS office. The form must not be submitted together with the tax return but must be produced when requested to do so by SARS for audit purposes.