Income Tax Exemption for Disabled Persons under Section 80U

What is deduction under Section 80U?

The deduction under section 80U of Income Tax Act, 1961 is available to a taxpayer, being an Individual, if he is suffering from a disability. This deduction can be claimed over and above all other deductions.

Who can claim deduction under Section 80U?

An Individual who is disabled or is severely disabled as per the certification of medical authority can claim deduction under Section 80U.

What is the maximum limit of deduction available under Section 80U?

As per Section 80U, a person suffering from 40% or more of one or more disability is eligible for deduction of Rs. 75000. Similarly, a person suffering from 80% or more of one or more disability is eligible for deduction of Rs. 125000.

The deductions under Section 80U are allowed at flat rate irrespective of the total expenditure incurred.

Do I need to submit any document to claim Section 80U deduction?

A taxpayer need not submit any medical bills or insurance premium receipts while filing Income Tax Return for claiming deduction under Section 80U. However, the taxpayer is required to have a certificate in form 10-IA from a medical authority which can certify his disability.

Which medical authorities are eligible to certify disability under Section 80U?

The medical authorities that are eligible to certify disability under Section 80U are:

  • A Neurologist with an MD in neurology
  • In case of children, a Pediatric Neurologist with an equivalent degree
  • A Civil Surgeon or Chief Medical Officer (CMO) of a government hospital

What is the procedure to claim deduction under Section 80U?

In order to claim deduction under Section 80U, the assessee first needs to obtain a certificate issued by the medical authority in form 10-IA for which the deduction is claimed. In case, there is a requirement for reassessment of disability, a fresh certificate of disability from the medical authority must be obtained if the period of original certificate is expired.

Where the assessee is a salaried person, he shall provide the certificate to the employer for claiming deduction under section 80U and give the required details in the declaration submitted to the employer. The employer shall take this into account and deduct tax at source accordingly. Further, to claim the benefit under section 80U, a salaried or a non salaried assessee has to take this deduction into account while filing their return of income of the respective financial year.

Is the Form 10-IA required to be furnished with the ITR?

Although as per section 80U given in Income Tax Act, 1961, an individual can not claim deduction under section 80U if he has not submitted Form 10-IA along with the ITR filed but Income Tax Rules supersede this section directing that no documents are need to be furnished with the income tax return. However, A disabled assessee claiming this deduction must obtain the certificate from the prescribed medical authority to present it to the income tax authorities as and when required.

What types of disabilities are eligible for deduction under Section 80U?

Below mentioned are the disabilities which are eligible for deduction under Section 80U.

  1. Blindness : Here a person will be considered blind if he has any of the following conditions.
    • Total absence of sight; or
    • Visual acuity not exceeding 6/60 or 20/200 (snellen) in the better eye with correcting lenses; or
    • Limitation of the field of vision subtending an angle of 20 degree or worse
  2. Low vision : Here person with low vision refers to impairment of visual functioning even after treatment or standard refractive correction but who uses or is potentially capable of using vision for the planning or execution or a task with appropriate assistive device.
  3. Leprosy-cured : Here leprosy-cured refers to any person whose leprosy is cured but is still suffering from:
    • Loss of sensation in hands or feet as well as loss of sensation and paresis in the eye and eye-lid but with no manifest deformity;
    • Manifest deformity and paresis but having sufficient mobility in their hands and feet to enable them to engage in normal economic activity;
    • Extreme physical deformity as well as advance age which prevents him from undertaking any gainful occupation
  4. Hearing impairment : Here hearing impairment refers to loss of sixty decibels or more in the better ear in the conversation range of frequencies.
  5. Loco motor disability : Here loco motor disability refers to the disability of bones, joints and muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy.
  6. Mental retardation : Here mental retardation refers to a condition of arrested or incomplete development of mind of a person that is specially characterized by sub-normality of intelligence.
  7. Mental illness : Here mental illness refers to any mental disorder other than mental retardation.

What is the meaning of "Severe disability under Section 80U"?

"Person with severe disability" refers to a person with 80% or more of one or more disabilities as referred to in Sub-section (4) of Section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

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