Section 80U - Deduction for the Disabled Persons

Roshni Bhagtani

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Section 80U - Deduction for the Disabled Individual

According to the income tax laws of India, certain sections provide deductions if the taxpayer or any of the family is suffering from certain disabilities.

Section 80U allows for a deduction if a person has a certain disability. Section 80DD, on the other hand, provides a tax deduction if a taxpayer-dependent family member is disabled. In this article, we are going to cover all about section 80U.

Eligibility Under Section 80U

  1. An individual resident who has been certified by the medical authority as a person with a disability.
  2. To claim deduction under this section the individual should have at least 40 percent disability.
  3. If a taxpayer claims a deduction under section 80U, he cannot claim deduction under section 80DD.

Which Disabilities are Covered Under Section 80U

Low Vision

Low vision is defined as a visual impairment resulting in low eyesight that cannot be rectified surgically and requires the use of external devices.

Hearing Impairment

Hearing impairment is when an individual hearing is less than 60 decibels.

Blindness

Blindness is defined as the entire absence of sight or a field of limited vision with an angle of 20 degrees or less, visual acuity of not more than 6160 even with corrective lenses, according to income tax laws.

Leprosy Cured

People who have been cured of leprosy but have no sensation in their hands and feet and paresis in the eye or eyelid. It also includes senior citizens and individuals with serious deformities that obstruct them to perform any activity beneficial to them.

Mental Retardation

The condition is defined as individuals with this disorder experiencing a halt in the growth or incomplete development of mental faculties, resulting in subnormal levels of intelligence.

Locomotor Disability

The disability is defined as people who have severely limited movements of limbs due to affected bones or joint muscles.

Mental Illness

Mental illness includes other mental disorders that are not covered under mental retardation.

The government of India has also defined severe disability as per the income tax rules. Severe disability is defined as a condition where an individual suffers from 80 percent or more disabilities from aforesaid categories. Severe disabilities also include multiple disabilities, autism, and cerebral palsy.

Amount of Deduction Under Section 80U

The quantum of deduction under section 80U is Rs. 75,000 for the people with disabilities and amount of Rs. 1,25,000 for the individual with severe disability.

Until 2015-2016, the maximum deduction was Rs. 50,000 for a person with a disability and Rs. 1,00,000 for a person with a severe disability.

How to Claim Section 80U Deduction?

There is no need to produce any documentation other than the certificate certifying the disability from an approved medical authority. There is no need to produce any bills to prove the payment of treatment or any such other expenses.

For cerebral palsy and autism form, 10-IA needs to be filled and for mental illness, some other required form needs to be filled.

As per section 139 of the income tax act, one must submit a disability certificate together with income tax returns to claim a deduction. Suppose your disability certificate expires then an individual can still claim a deduction for that year. However, a fresh certificate would be required for succeeding years to claim benefits.

Difference Between Section 80U and 80DD

Section 80U provides deduction to the taxpayer himself while section 80 DD provides a deduction for the family member or disabled dependent. Here a dependent refers to assessee siblings, parents, spouse, children, or a member of Hindu undivided family.

Section 80DD is only applicable if a taxpayer deposits a premium for health insurance for taking care of his disabled dependent. Section 80U and section 80DD have the same amount of deduction.

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