What is Section 80U
Section 80U of the Income Tax Act, 1961 includes provisions for tax deduction benefit to individual taxpayers suffering from a disability. In order to claim tax deduction under section 80U, the individual must be certified as a person with a disability by the appropriate medical authority.
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Who is a Person With a Disability
As per the Persons with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1955, individuals suffering from any of the following ailments with a minimum of 40% impairment will be considered disabled:
- Low Vision
- Leprosy (cured)
- Hearing Impairment
- Locomotor Disability
- Mental Retardation
- Mental Illness
- Cerebral Palsy
The disability act also provides a definition of severe disability which refers to the condition where the disability is 80% or more. A person suffering from multiple disabilities will also be considered severely disabled.
Deduction Limit Under Section 80U
Person with Disability: If a person is suffering from at least 40% disability, he/she can claim a tax deduction of up to Rs.75,000 on the taxable income under section 80U.
Person with Severe Disability: If a person is suffering from severe disability i.e. suffering 80% disability (either from one or multiple ailments) can claim a tax deduction up to Rs. 1.25 lakh under section 80U.
|Type of Disability||Deduction Limit Under Section 80U|
|General Disability||Rs. 75,000|
|Severe Disability||Rs. 1.25 lakh|
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Documents Required to Claim Tax Benefits Under Section 80U
Apart from the disability certificate issued by a medical authority, there are no other documents required for claiming tax deductions under section 80U. However, in case of illnesses such as autism and cerebral palsy, Form 10-IA additionally needs to be filled up.
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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 Paediatric Neurologist in case of children
Q. What if my disability certificate gets expired in the current year?
In case the disability assessment certificate gets expired, you can still claim a tax deduction under section 80U in the year in which the certificate gets expired. However, you must get it reissued for claiming tax benefits in the subsequent years.
Q. What is the difference between section 80DD and section 80U?
Although both sections provide income tax deductions on the grounds of disability, the beneficiaries under the respective sections are different. Under section 80U, individuals suffering from a disability can claim tax deductions for self only. While under Section 80DD, dependant family members of the individual suffering from the disability can claim the tax deduction. Here, dependant family members include the spouse, children, parents and siblings of the disabled person.
Q. What is Section 80U eligibility criteria?
- You need to be a resident individual certified by the medical authority to be a person with disability, anytime during the financial year, to claim this deduction for yourself
- NRIs or Non-Resident Indians are not eligible to claim a deduction under Section 80U
Q. How do I claim the deduction under Section 80U?
A person or an individual with physical disabilities can claim the deduction under section 80U of Income Tax Act while reporting income in an income tax return.
Also read: How to File Income Tax Return Online
Q. Can I claim a deduction under Section 80U and Section 80DD at the same time?
No, you cannot claim a deduction for both Section 80U and Section 80DD simultaneously.