Section 80U - Tax Deduction for Disabled Individuals

Section 80U of the Income Tax Act, 1961 allows resident individuals with disability to claim a flat deduction of Rs 75,000 or Rs 1.25 lakh for severe disability from their total income. The disability has to be certified by the approved medical authorities at any time during the financial year. The taxpayers suffering from disability must submit disability certificate or Form 10-IA while filing their income tax returns. Here, we will discuss in detail how section 80U helps individuals with disability by allowing a fixed deduction to reduce their taxable income and thereby providing financial relief and security.

Who can Claim Deduction under Section 80U?

A resident individual who has been certified as a person with a disability by the medical authority can claim the tax benefit under Section 80U. For the purpose of this section, a person with a disability is defined as a person who has at least 40% disability, certified by the medical authorities.

For the purpose of this section, disability has been defined as one of the following:

• Blindness
• Low vision
• Leprosy-cured
• Hearing impairment
• Locomotor disability
• Mental retardation
• Mental illness

The section also provides a definition for a severe disability which refers to a condition where the disability is 80 percent or more of one or more disability. Severe disability includes multiple disabilities, autism and cerebral palsy.

Quantum of Deduction under Section 80U

A flat deduction of Rs.75,000 is allowed for people with disabilities and a Rs 1.25 lakh for people with severe disability.

Requirements to Claim Deductions Under Section 80U

• There isn’t any documentation requirement apart from the certificate certifying the disability from a recognized medical authority in Form 10-IA.
• There’s no need of producing bills for the cost incurred for the pursuance of treatment or such other expenses.
• For making a claim under this section, one must submit the medical certificate indicating the disability together with the income tax returns as per Section 139 for the relevant AY.
• In case the disability assessment certificate has expired, one would not be able to claim such deductions for the financial year after the expiry of certificate.
• However, a fresh certificate would be required on expiry of validity to claim the benefits u/s section 80U.

Certificates could be obtained from the medical authorities, who could be either a neurologist with a Doctor of Medicine (MD) in Neurology (in the case of children, a paediatric neurologist with an equivalent degree) or a civil surgeon or Chief Medical Officer in a government hospital.

This deduction can be claimed only if you are opting for the old tax regime.

Note: If the disability is temporary and requires reassessment after a certain period, then the certificate’s validity starts from the assessment year relevant to the financial year during which it was issued and ends during the assessment year relevant to the financial year when the certificate expires.

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 paediatric neurologist who has a degree of MD (Doctor of Medicine) in Neurology in case of disabled children

Difference Between Section 80U and Section 80DD