Section 80U
Section 80 U of the Income Tax Act, 1961 includes all the tax deduction benefits which are given to individual taxpayers who are dealing with a disability. To claim the tax deduction under Section 80U, an individual must be certified as a person with a disability by an appropriate medical authority.
Person with a disability are as follows:
Individuals suffering from any of the following ailments with a minimum 40% impairment will be considered as disabled according to the Act, 1955 which is regarding the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation.
- Blindness
- Low Vision
- Leprosy (cured)
- Hearing Impairment
- Locomotor Disability
- Mental Retardation
- Mental Illness
- Autism
- Cerebral Palsy
The disability Act gives the definition of severe disability which refers to the condition where the disability is 80% or above. A person suffering from multiple disabilities will also be considered as severely disabled.
Deduction limit according to Section 80U
Person with a disability: If the person is facing at least 40% disability in that case, he or she can claim a tax deduction by maximum Rs 75000 on the taxable income according to Section 80U.
Person with Severe Disability: If a person is suffering from a severe disability that is suffering 80% disability (either from one or multiple ailments) can claim a tax deduction by maximum Rs. 1.25 lakh under section 80U.
What all documents required to claim the tax benefits according to Section 80U?
Apart from the disability certificate issued by the medical authority, there are no other documents required to claim tax deductions under Section 80U. However, in the case of illness either in the form of Cerebral Palsy or autism, Form 10-IA needs to be filled up.
What constitutes a medical authority?
Medical authorities mentioned below are eligible to issue a medical certificate:
- A civil surgeon or Chief Medical Officer (CMO) of a government hospital
- A neurologist with an MD in Neurology
- A Pediatric Neurologist in case of children
What if my disability certificate gets expired in the current year?
In case of the expiry of the disability assessment certificate, you can claim tax deduction according to Section 80U in the year in which certificate gets expired. However, you must get it reissued for claiming tax benefits in the subsequent years.
What is the difference between section 80DD and section 80U?
Both the Sections are allowing Income Tax Deduction on the ground of disability, beneficiaries of both the sections are different. According to Section 80U, individuals can claim tax deduction on self-basis only.
While under Section 80DD, dependent family members of the individual suffering from the disability can claim the tax deduction. Here, dependent family members include spouses, children, parents, siblings of the disabled person.
