Section 80U Deductions for the Disabled

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 conditions to claim this deduction are -

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

Tax Deduction under Section 80U?

*"person with severe disability" means—
(i) a person with eighty per cent 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 (1 of 1996); or
(ii) a person with a severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).

**"person with disability" means— a person referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);
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80U Eligibility - Who can claim this deduction?

Resident individuals who at any time during the financial year, are certified by the medical authority to be a person with disability/iescan claim this deduction for self only. The residential status determines the eligibility for this deduction. NRIs are not eligible for this deduction.

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

As stated earlier, the deduction amount depends on the severity of the 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 that 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:- This refers to disabilities in joint muscles or bones which leads to severely limited movements of limbs.
• 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 are still suffering 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
• 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.
• Mental illness:- This covers other mental disorders

The taxpayer 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 taxpayer is suffering from a disability that is 80% or more, it would be termed as a severe disability. The deduction limit varies depending on the severity of the 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 along with ITR. 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 theIncome 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 taxpayer.

The disability certificate has a specified validity. If the validity of the certificate 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 availed for claiming deduction under Section 80U in the next year.

Which medical authority can issue certificate under section 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 paediatric neurologist who has a degree of MD (Doctor of Medicine) in Neurology in case of disabled children

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 tax-payer, Section 80DD allows deductions if the taxpayer has a dependent 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 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.

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

Read more about: Section 80DD Deduction

Conclusion

Deductions help in reducing tax liability, Expenditure specific deductions can understand as deductions, which is promoted by the Government of India by providing tax relief on such expenditure like that in 80C etc, while other types of deductions are those which are provided by the Government on fulfilment of certain conditions to reduce the tax burden. One such deduction is provided in section 80U.

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