Section 80U Income Tax Deduction for the Disabled Persons

What is Section 80U of the Income Tax?

Section 80U of the income tax is a deduction for the disabled person. This section provides a flat deduction to the disabled person on the basis of severity of disability irrespective of the amount of expenditure.

The condition to claim this deduction are -

• Tax-payers should be a resident individual.
• He should be suffering from at least 40% disability.
• The disability should also be certified by the recognised medical authorities.

Who can claim this deduction?

Resident individuals who at any time during the financial year certified by the medical authority to be a person with disability can claim this deduction for self only. The residential status determines the eligibility for this deduction. Therefore, resident indian and foreign citizen both can claim this deduction.NRIs are not eligible for this deduction.If the tax-payer claims a deduction under Section 80U, he/she cannot claim another deduction under Section 80DD.

What is the amount of deduction available u/s 80U?

As stated earlier, the deduction amount depends on the severity of disability. So, tax-payers with less than 80% disability get a deduction of Rs.75,000 and tax-payers with severe disabilities which is 80% or more get a deduction of Rs.1,25,000 lakhs. The deduction is a fixed amount which is allowed as a deduction from the taxable income.

If the tax-payer’s aggregate income is INR 10 lakhs and he suffers from a 60% disability, he can avail a deduction of INR 75,000 which would reduce his total income to INR 9.25 lakhs. The computation of the tax liability would also change. Here’s how –

Thus, with the deduction available under Section 80U, the taxpayer can save INR 15,000 in taxes in the above situation .

Which disabilities are covered under Section 80U?

Section 80U covers the following types of disabilities –

• Locomotor disability
• Low vision
• Blindness
• Leprosy – cured
• Mental retardation
• Hearing impairment
• Autism
• Cerebral palsy
• Multiple disabilities
• Mental illness

The tax-payer would be considered as not severely disabled if he/she is suffering from a disability which is 40% or more but below 80%. However, if the tax-payer is suffering from a disability which is 80% or more, it would be termed as a severe disability. The deduction limit varies depending on the severity of disability suffered.

How to claim deduction under Section 80U?

The person claiming the deduction is required to furnish a copy of the certificate issued by the medical authority in the prescribed form alongwith ITR. Since, practically no document is required to be attached with ITR, it is advised to keep the document handy.

Please note that the medical certificate should be submitted certifying the disability suffered. The certificate should be prepared by a recognized medical authority in a prescribed format which is contained in Form 10 –IA. The form can be found on the Income Tax India Website -

Thus, it simply implies that if you are taking the deduction under this section then keep the certificate with you which you can take from the Authorized medical Practitioner.

Also, it is suggested that keep the medical prescription and medical records safe in case the income tax department asks for the same in future.

The medical certificate should contain the details of the disability suffered by the tax-payer.

The disability certificate has a specified validity. If the validity of the certificate expires in any financial year, deduction for that financial year can be claimed using the expired certificate. However, from the next financial year a new certificate would have to be availed for claiming deduction under Section 80U in the next year.

Which medical authority can issue certificate u/s 80U?

Medical authorities who are eligible for issuing a disability certificate can be any of the following –

• Neurologist who has a degree of MD (Doctor of Medicine) in Neurology
• A civil surgeon in a Government hospital
• A Chief Medical Officer in a Government hospital
• A pediatric neurologist who has a degree of MD (Doctor of Medicine) in Neurology in case of disabled children

Conclusion

Section 80U and Section 80DD are often mixed together because both these sections allow deductions for disabled individuals. However, the main difference between these sections is that while Section 80U provides deductions for a disabled tax-payer, Section 80DD allows deductions if the tax-payer has a dependent suffering from a disability. In case of an individual, the dependent can be spouse, children, parents or siblings and in case of HUF, a member of the HUF. Moreover, the deduction under Section 80DD is allowed if the tax-payer has incurred expenses on treatments, medicines, training or rehabilitation of the disabled dependent. So, both these sections have different meanings and tax implications and should not be confused to be one.

Disabled tax-payers should understand the provisions of deduction under Section 80U and utilize these provisions to claim a tax benefit on their taxable income.