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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.

Example on 80U Eligibility

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 –

Without Section 80U deduction With Section 80U deduction
Gross total income/Taxable income – INR 10 lakhs Gross Total Income – INR 10 lakhs Taxable Income – INR 9.25 lakhs
Tax payable on income between INR 2.5 lakhs and INR 5 lakhs – 5% of INR 2.5 lakhs = INR 12,500 + Tax payable on income between INR 5 lakhs and INR 10 lakhs – 20% of INR 5 lakhs = INR 1 lakh Tax payable on income between INR 2.5 lakhs and INR 5 lakhs – 5% of INR 2.5 lakhs = INR 12,500 + Tax payable on income between INR 5 lakhs and INR 9.25 lakhs – 20% of INR 4.25 lakhs = INR 85,000
Total tax payable = INR 1,12,500 Total tax payable = INR 97,500

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 -

Form 10 –IA

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.


Frequently Asked Questions

Q- Can a NRI avail deduction under Section 80U?

Ans: No, deductions under Section 80U are allowed only to resident Indians.


Q- Can I claim a deduction under both Sections 80U and Section 80DD?

Ans: No, if the taxpayer has claimed a deduction under Section 80U, he/she cannot claim another deduction under Section 80DD although the deduction under this section is for disabled dependents. Similarly, if the taxpayer has claimed a deduction under Section 80DD, he/she cannot claim another deduction under Section 80U for self.


Q- Would the medical reports or bills required to be submitted for availing deduction under Section 80U?

Ans: No, no medical bills or reports would be required to avail a deduction under Section 80U. However, a disability certificate issued by an authorised medical practitioner would be required.


Q- Is the deduction amount based on the actual expenses incurred?

Ans: No, the deduction is allowed at a flat rate irrespective of the expenses incurred in treatment or maintenance of the disability.


Q- Can tax-payers claiming deduction under Section 80U also claim deductions under other eligible sections?

Ans: Yes, tax-payers claiming deduction under Section 80U,other than Section 80DD, can claim deductions under other sections too like Section 80C, Section 80D, Section 80E, etc.


Q- What is a severe disability for 80U ?

Ans: A person with a disability means a person who is suffering from at least 40% of a disability. If an individual has severe disability (i.e., 80% or more of a disability) then he is eligible for a deduction of Rs. 1,25,000.


Q- Can I claim both 80DDand 80U?

Ans: No, deduction u/s 80DD & 80U cannot be claimed simultaneously. If you have incurred expenditure for medical treatment of a disabled dependent relative & you are also a disabled person then you can claim the deduction under any one of the sections only.


Q- What amount is accepted for deduction under Section 80DD regarding disability?

Ans: The amount of deduction that can be claimed depends on the percentage of disability. If the dependent has 40 percent or more disability but less than 80 percent, then the deduction of Rs 75,000 can be claimed in a financial year and if the disability is 80% or more then deduction is INR 1,25,000.


Q- What if my disability certificate expires in the current year?

Ans: In the current year, you can claim deduction on the basis of expired certificate but to get deduction in subsequent year you need to get a new certificate.


Q- What are the different documents required under section 80U?

Ans: A copy of certificate of the medical authority in Form 10-IA for certifying person with disability, severe disability, autism, cerebral palsy and multiple disability shall be required for purposes of claiming deduction u/s 80U.


Q- Who can certify a disable person?

Ans: Medical Authority can certify a disable person. Medical authority here means :

  • A civil surgeon or Chief Medical Officer (CMO) of a government hospital
  • A neurologist with MD in Neurology
  • A Paediatric Neurologist with MD in Neurology in case of children

Q- What if my disability certificate gets expired in the current year?

Ans: In the current year, you can claim deduction on the basis of expired certificate but to get deduction in subsequent year you need to get a new certificate.


Q- What are the different documents required under section 80U?

Ans: A copy of certificate of the medical authority in Form-IA for certifying person with disability, severe disability, autism, cerebral palsy and multiple disability shall be required for purposes of claiming deduction u/s 80U.


Q- Who can certify a disable person?

Ans: Medical Authority can certify a diable person. Medical authority here means :

  • 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

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CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.