Section 80U - Tax Deduction for the Disabled Persons

What is Section 80U?

Section 80U of the Income Tax Act of 1961 states the provisions for tax deductions or tax benefits for individual taxpayers who are suffering from a disability. As per the law, Indian residents who have more than 40% disability are considered persons with disability.

Note: A similar deduction available under section 80DD is also available under the Income Tax Act. However, this deduction offers tax benefits for the taxpayer’s dependant family members suffering from a disability.

Tax Deduction Under Section 80U?

*"person with severe disability" means—A condition where the disability is 80 percent or more. Severe disability also includes multiple disabilities, autism, and cerebral palsy.

**"person with a disability" means— A person who has at least 40 percent disability, certified by the medical authorities.

80U Eligibility - Who Can Claim this Deduction?

Resident individual who, at any time during the financial year, is certified by the medical authority to be a person with disability can claim this deduction. However, it is important to note that deductions under section 80U can only be claimed by the person with a disability for themselves. The residential status determines the eligibility for this deduction. NRIs are not eligible for this deduction.

Any person with a disability (upto 40%) or a severe disability (upto 80%) can claim this deduction.

For this purpose, disability has been defined as -

• Blindness
• Low vision
• Leprosy cured
• Hearing Impairment
• Loco Motor Disability
• Mental Retardation
• Mental illness

Section 80U Deduction Limit

The maximum limit of deduction under section 80U is as follows -

• Person with severe disability: Rs.1,25,000 for persons with severe disability, i.e., 80% and above
• Person with Disability: Rs.75,000 for persons with disability, i.e., between 40% and 80%

Section 80U Deduction Eligibility with Example

If the taxpayer’s aggregate income is INR 10 lakhs and he suffers from a 60% disability, he can avail of 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 15,600 in taxes in the above situation.

Note: Section 80U deduction can only be claimed if the taxpayer opts to pay taxes as per the old regime and is not applicable in the new regime.

Which Disabilities are Covered Under Section 80U Deduction?

Section 80U covers the following types of disabilities –

• Locomotor disability:- This refers to disabilities in joint muscles or bones which lead to severely limited movements of limbs or any form of cerebral palsy.
• Low vision:- People with visual function impairment that can’t be totally corrected by surgery or standard refractive correction. People having this disability are still capable of using their vision through assistance from other devices.
• Blindness:- Blindness means a complete absence of sight or where the field of vision limitation by an angle of 20 degrees or worse, or visual acuity less than 6160 Snellen after corrective lenses.
• Leprosy cured:- People who have been cured of leprosy but still suffer from the disability where they have lost sensation in feet or hands and paresis in eyelid and eye. It also includes senior citizens or people with extreme deformities that obstruct them from performing any beneficial occupation.
• Mental retardation:- People having incomplete or arrested development of mental capacities resulting in subnormal intelligence levels.
• Hearing impairment:- Hearing power loss of at least 60 decibels
• Mental illness:- This covers other mental disorders
• Diseases Covered Under Severe Disability -
  • Autism:- Autism spectrum disorder is related to brain development that impacts how a person perceives and socializes with others, causing problems in social interaction and communication.
  • Cerebral palsy:- CP is a group of movement disorders that appear in early childhood. Signs and symptoms vary among people and over time but include poor coordination, stiff muscles, weak muscles, and tremors. There may be problems with sensation, vision, hearing, and speaking.

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

How to Claim a Deduction Under Section 80U?

The person claiming the section 80U deduction must keep handy a copy of the certificate issued by the medical authority in the prescribed form. 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 the medical prescription and medical records are safe in case the income tax department asks for the same in the future.

The medical certificate should contain the details of the disability suffered by the taxpayer.

The disability certificate has a specified validity. If the certificate's validity expires in any financial year, the 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 available to claim a deduction under Section 80U in the next year. Taxpayers can get the certificate from certified medical practitioners who are either civil surgeons, a neurologist, or chief medical officer in a government hospital.

Section 80U Deduction in the New Tax Regime

The deduction under section 80U of the Income Tax Act is not available to taxpayers opting to pay taxes as per the new tax regime. It is only available under the old tax regime.

Requirements to Claim Deductions Under Section 80U

• A disability certificate duly signed by a recognized medical authority and submitted through Form 10-IA. There is no need to present the bills or information on the treatment received.
• The AY in which the taxpayer applies for the deduction, he/she needs to present a disability certificate as per the provisions of section 139 of the Income Tax Act.
• You will also need a new certificate in the year succeeding the year of its expiration to claim Section 80U benefits.

Which Medical Authority can Issue Certificates Under Section 80U?

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

• A 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

Difference Between Section 80U and Section 80DD & 80DDB

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 individual tax-payer, Section 80DD allows deductions if the taxpayer has a dependent who is suffering from a disability. In the case of an individual, the dependent can be a spouse, children, parents, or siblings, and in the case of HUF, a member of the HUF.

Moreover, the deduction under Section 80DD is allowed if the taxpayer has incurred expenses on treatment, medicines, training, or rehabilitation of the disabled dependent. So, both these sections have different meanings and tax implications.

Whereas under Section 80DDB, if an Individual or HUF incurs any expenditure on the treatment of Specified Diseases for a self or dependent relative can take tax benefit. Dependent relative means spouse, children, brother, sister, parents.

Read more about: Section 80DD Deduction

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