Section 80U of Income Tax Act
Under income tax act, various tax benefits are offered to individuals or their dependents who are suffering from certain disabilities. As per section 80U of the income tax act, individuals who are physically disabled are allowed to claim deduction on the basis of disabled percentage while filing their income tax return. An individual filing income tax return is allowed to reimburse the amount of medical expenditure incurred on his or her treatment under section 80U.
Who is considered as disabled person?
An individual with a physical disability of at least 40% is considered as a disabled person and is allowed to claim deduction up to Rs.75000 on his or her income.
Who can claim deduction under section 80U?
An individual with at least 40% of disability as certified by the medical authority is eligible to claim deduction under section 80U of the income tax act. This act covers many disabilities on which an individual can claim deduction under section 80U –
- Low vision
- Mental illness
- Mental retardation
- Hearing impairment
- Loco motor disability
It also covers severe disability which states that if an individual is 80% disabled; he/she is allowed to claim deduction up to Rs.125000 on his/her income. Severe disability includes Autism, Cerebral Palsy, other multiple disabilities etc.
What is the Deduction limit under section 80U?
An individual can claim deduction in two of the categories named “Person with disability” and “Person with severe disability” and both have a different deduction limit under section 80U of the income tax act –
|Category||Maximum deduction allowed|
|Person with disability (40%)||Rs.75000|
|Person with severe disability (80%)||Rs.125000|
Which Documents required for claiming deduction under Section 80U?
There are certain documents that an individual must submit in order to claim deduction under section 80U of the income tax act –
- A valid certificate certifying disability from an authorized medical authority.
- Form 10-IA to be filed in case of illness like Cerebral Palsy and Autism.
- A separate form to be filed in case of mental illness.
Which medical authority can issue the Certificate?
In order to get certificate, you need to contact the following medical authorities –
- A chief medical officer (CMO).
- A Civil surgeon working in a government hospital.
- A Neurologist having a degree of MD in neurology.
- A Paediatric neurologist having a degree of MD in neurology (In case of disabled children).
Can I claim both 80DD & 80U?
An individual suffering from disability can claim deduction under section 80U whereas 80DD covers the disability or severe disability of dependent family members. If both individual and his/her dependent family member is suffering from disability, it is possible for you to claim deduction under both section 80U & 80DD.
Difference between Section 80U and Section 80DD
|Category||Section 80U||Section 80DD|
|Applicable to||It is applicable to individual taxpayers who are physically disabled.||It is applicable to the dependents of the individual taxpayers such as parents, spouse, children’s or siblings|
|Deduction limit||Rs.75000 – Person with disability Rs.125000 – Person with severe disability||Deduction limits same as section 80U|
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