Section 80U - Tax Deduction for the Disabled Persons
Check the eligibility, deduction amount, how to claim, documents, definitions, for FY 2019-20(AY 2020-21), diseases covered
The Income Tax Act has prescribed various eligible deductions under Chapter VI A. Deductions help in reducing tax liability, Expenditure specific deductions can understand as deductions, which is promoted by the Government of India by providing a tax relief on such expenditure like that in 80C etc , while another type of deductions are those which are provided by Government on fulfillment of certain conditions to reduce the Tax burden . One such deduction is provided in section 80U. These deductions are tax-free in nature hence are reduced from your gross total income. One such deduction is available under Section 80U. If the tax-payer is a disabled individual, he/she can claim a deduction under this Section and can lower the overall tax payments. Let’s understand what this section is all about and what deductions that it offers –
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 -
- 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.
Tax Deduction under Section 80U?
|Person with severe disability*||one hundred and twenty-five thousand rupees i.e., Rs. 1,25,000/-|
|Person with disability**||seventy-five thousand rupees i.e, Rs. 75,000/-|
*"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.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:- 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
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.
Frequently Asked Questions
Q- Who can claim deduction under section 80U?
Resident individuals, who at any time during the financial year, certified by the medical authority to be a person with a disability can claim this deduction for themselves only
Q- What is the amount of deduction under Section 80U?
Tax-payers with less than 80% disability get a deduction of Rs.75,000 and taxpayers with severe disabilities which is approximately 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.
Q- Can an NRI avail deduction under Section 80U?
No, deductions under Section 80U are allowed only to resident Indians.
Q- Can I claim a deduction under both Sections 80U and Section 80DD?
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?
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?
No, the deduction is allowed at a flat rate irrespective of the expenses incurred in treatment or maintenance of the disability.
Q- Can taxpayers claiming deduction under Section 80U also claim deductions under other eligible sections?
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?
A person with a disability means a person who is suffering from at least 40% of a disability. If an individual has a 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 80DD and 80U?
No, deduction u/s 80DD & 80U cannot be claimed simultaneously. If you have incurred expenses 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?
The amount of deduction that can be claimed depends on the percentage of disability. If the dependent has 40 per cent or more disability but less than 80 per cent, then the deduction of Rs 75,000 can be claimed in a financial year and if the disability is 80% or more then the deduction is INR 1,25,000.
Q- What if my disability certificate expires in the current year?
In the current year, you can claim deduction on the basis of an expired certificate but to get a deduction in the subsequent year you need to get a new certificate.
Q- What are the different documents required under section 80U?
A copy of the certificate of the medical authority in Form 10-IA for certifying a person with disability, severe disability, autism, cerebral palsy and multiple disabilities shall be required for purposes of claiming deduction u/s 80U.
Q- Who can certify a disabled person?
Medical authorities can certify a disabled 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
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